Carina Garland (Chisholm, Australian Labor Party) Share this | Hansard source

I rise today in support of the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023. This bill is a really important step to both support and protect Australians when it comes to interactive gambling and the increasing consequences we see from those activities that are very harmful to our communities.

In November 2021, the Parliamentary Joint Committee on Corporations and Financial Services delivered their recommendations from the inquiry into the regulation of the use of financial services such as credit cards and digital wallets for online gambling in Australia. These recommendations included the advice for government to implement legislation to ban online providers of wagering, gaming and other gambling services from accepting payment by credit cards, including digital wallets. Subsequently, the bill here amends the Interactive Gambling Act 2001 to prohibit the use of credit cards, credit related products and digital currency as payment methods for interactive wagering services; create a new criminal offence and civil penalty provision related to the ban; provide the Australian Communications and Media Authority with enhanced powers to enforce the ban and existing offences under the act; and make several consequential changes and remove some spent provisions. Importantly, in introducing this legislation, the Albanese Labor government are demonstrating how serious we are when it comes to banning credit cards for gambling purposes, with fines up to $234,750 for companies that do not enforce these new measures. The bill will expand the Australian Communications and Media Authority's powers to create strong and effective enforcement of the new and existing civil provisions under the act, and penalties could apply to the breach of the new provisions, too.

Since coming to government, we have prioritised work to reduce the harm caused by online gambling, including through implementing the final measures under the National Consumer Protection Framework. This includes the introduction of monthly activity statements outlining wins and losses, new evidence-based taglines to replace 'gamble responsibly' and nationally consistent training for staff working in online gambling companies. We've also introduced BetStop, the National Self-Exclusion Register, which allows consumers to exclude themselves from all Australian licensed wagering services for a period ranging from three months to a lifetime. In addition, we are introducing mandatory customer preverification, requiring wagering service providers to verify a customer's identity when they register for a new account and before they can place a bet.

We know that interactive gambling has grown exponentially in recent years. The confluence of the convenience of online gambling platforms with that of entertainment has raised increasing concerns from community groups and stakeholders. We know all too well how ease of access can lead to addictive behaviour, impacting not only the individual but also their families and their communities.

The Parliamentary Joint Committee on Corporations and Financial Services inquiry received submissions from a range of stakeholders, including responsible gambling advocates, financial counsellors and academics. The submissions highlighted how gambling with credit can lead to significant and life-changing consequences, such as extreme financial hardship, loss of employment and bankruptcy. Broader societal harms, including mental illness, homelessness and the breakdown of relationships, can also be casualties of this hardship, as well as impacts felt beyond the individual gambler. Impacts can affect family, friends, colleagues and employers. The parliamentary joint committee concluded that the current exemption under the act that permits independently issued credit cards to be used for online wagering is a 'glaring omission in the current regulatory system'.

It is estimated that approximately 15 per cent to 20 per cent of online wagering is currently done with credit cards, with this cohort of customers naturally more susceptible and vulnerable to greater harms arising from gambling. Additionally, access to credit for online wagering, combined with the ease of gambling uses on digital devices, such as a mobile phone, can result in substantial amounts of debt accumulated in really short periods of time. We also know that gambling transactions are typically treated as cash advances, which usually incur a high rate of interest compared to rates for regular purchase transactions, which naturally then increases the burden of gambling losses too. The need for regulation in the field of interactive gambling is undeniable. Without it, we risk allowing this industry to continue unchecked with grave consequences.

The societal cost of unregulated gambling in terms of addiction, financial ruin and family breakdown is immense, and I'm so pleased that this bill addresses these issues head on. The Minister for Communications has stated that the Australian government remains committed to protecting Australians from gambling harms. Legislating a ban on the use of credit cards for online gambling will help to protect vulnerable Australians and their loved ones. This bill plays a crucial role in safeguarding our society from the harmful effects of unbridled interactive gambling. It aims to strike a balance between individual freedom and collective responsibility, recognising that gambling can, for some, be a legitimate form of entertainment. Allowing credit card payments for gambling can lead individuals into a spiral of debt, though, and the allure of easy access to borrowing funds to gamble is a dangerous path for many, ultimately leading to financial ruin and personal despair. By prohibiting credit card payments for gambling, this bill takes a significant step towards preventing individuals from sinking into a cycle of debt. It promotes financial responsibility and prevents the abuse of credit facilities for gambling purposes.

Additionally, the bill seeks to promote self-exclusion programs and, in doing so, to empower individuals to take control of their gambling habits. These enhanced options offer practical tools for those seeking to limit their involvement in gambling. Requiring gambling operators to provide responsible gambling information ensures that consumers are informed about the potential risks, again empowering individuals to make informed decisions about their participation.

This bill also establishes a regulatory authority to oversee and enforce the provisions, ensuring that the industry operates within clear guidelines to minimise the chance for fraudulent and unethical practices. Stringent penalties for noncompliance act as a deterrent, discouraging operators from breaking the law and prioritising their profits over consumer protection. Importantly, the bill also introduces mechanisms for consumers to lodge complaints and resolve disputes. This offers a safety net for individuals who may feel wronged or exploited. This bill will place a strong emphasis on protecting vulnerable individuals who are more susceptible to being enticed by their gambling addiction.

This bill recognises that our responsibility goes beyond personal freedoms to effectively regulate the wellbeing of all members of society. Subsequently, this bill acknowledges personal freedom while establishing the boundaries necessary to protect society from the negative consequences that gambling can often bring. This bill is a really important one for Australia, given that we see a lot of other countries have already implemented similar legislation, and there are some valuable lessons there.

Effective regulation is not an impossible goal. We've seen other jurisdictions striking a balance between personal freedom and societal wellbeing, and we seek to emulate and build upon those successes here in Australia. This bill takes into account Australia's unique cultural and social factors, ensuring that the regulations are well suited to our nation's particular needs and challenges. This bill is designed to mitigate the harm caused by problem gambling, saving countless individuals and families from the devastating effects of addiction and financial ruin. I call upon all members of the House to support this bill and ensure its passage. By doing so, we can pave the way for a healthier, safer, and more responsible interactive gambling environment in Australia. This is a crucial piece of legislation that supports our government's endeavours to protect and support Australians, and I'm proud to be part of a government that is so committed to the welfare of all Australians.

See this speech in context