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As the Australian government regulates pokies in the country, a new debate is now heating up about putting limits on pokie play. For this, not only are states and territories in Australia involved, but even banks are making decisions that impact Aussies and their rights on pokies. The question is, will Aussies play pokies now, fund the casino with credit cards or banknotes?

Credit cards or Banknotes

South Australian lawmakers decided to include a controversial measure in their list of proposed gambling reforms. They wanted the SA State Parliament to consider allowing gamblers to use banknotes instead of coins in pokies. This measure would align South Australia with other states and New Zealand and enable more technologically advanced pokies.

Opponents of the measure pointed to massive donations to lawmakers from the Australian Hotels Association (AHA). This group wants people to be able to pay to play the pokies more easily. The AHA did admit that it would help grow their businesses.

Recently, the Australia Institute released the results of a public survey and study showing overwhelming opposition to banknotes in pokies.

Researchers surveyed 503 South Australians in November 2019. The most significant result was that 80% — four in five — of South Australians believe that allowing players to use banknotes in machines would increase the likelihood of gambling addiction and the level of gambling harm overall.

An even higher number, 82%, of the respondents said they want pokies to accept coins only or to be banned altogether. These results were consistent across genders, age groups, economic status, incomes, and voting party affiliation.

According to the Australia Institute's SA Director, Noah Schultz-Byard, the opposition to the proposed government reform is clear and strong. “South Australians are overwhelmingly convinced that these reforms will hurt the community,” he said. “Only 13% of South Australians support the government’s plan, while more than 40% want poker machines banned outright.”

Does ABA want pokies to allow players to use credit cards?

Throughout 2019, Australian financial institutions have been considering the use of credit cards for gambling. Macquarie became the first to do so this summer, with a new policy taking effect on July 1, 2019.

Macquarie blocked all credit card transactions registered with merchant codes associated with gambling or lotteries. In addition, the bank capped cash advance balances at $1,000, effective as of August 31, 2019.

The bank decided to be proactive in “helping customers manage their finances effectively and avoid problematic credit card debt.” This is in line with the company’s overall commitment to the financial well-being of its customers. Other financial institutions began considering similar moves but looked to the Australian Banking Association (ABA) for guidance. That prompted the ABA to assemble a consultation paper and determine what customers and the public want to see.

The ABA released a consultation paper on December 5, 2019, to seek the public's views on credit card use for gambling. Banks want to take their role in minimising gambling harm seriously, but want to do so in conjunction with public support. “As an industry, banks are currently assessing some options to help tackle problem gambling. They seek feedback across the community on some important questions, which will help banks consider further reform on this issue.”

The questions in the consultation document are as follows:

  • What are the risks and concerns associated with gambling with credit cards?
  • Should the use of credit cards for gambling be restricted or prohibited?
  • If so, should the restriction or prohibition apply to all forms of gambling?
  • What are the potential consequences of prohibiting or restricting the use of credit cards for gambling?
  • Should there be a transition period if banks choose to implement changes relating to credit cards?

Submissions will be accepted through the end of the day on March 4, 2020.

The current state of regulatory requirements allows credit card use for some forms of gambling, not others. You can use credit cards for online casinos, lotteries, and betting apps.

Still, credit cards will not be accepted at real land casinos, poker machines in clubs and licensed venues, high roller rooms in casinos, or horse racing and greyhound racing tracks and TAB outlets. The above-mentioned survey results will be used to decide whether the ABA should take a stance on all forms of gambling regarding credit card use.

(Source: Casino news)