Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

Good morning. In essence, I will support the government's Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, and I will go further: I applaud the government for acting on this. It is self-evident that people should not be allowed to gamble with money they don't have. This is a very positive step forward. I am sure it is evidence based, and I am confident that it will diminish the incidence of gambling addiction in this country, so good on the government.

It's so important to be introducing reforms such as these. The Australian Institute of Family Studies reports that 46 per cent of Australians who gamble are at low, medium or high risk of gambling addiction. I'll say that figure again, because that is just a breathtaking figure: the Australian Institute of Family Studies finds that 46 per cent of gamblers are at risk of gambling addiction. Very relevant to today's bill, the institute also finds that online problem gambling is three times more prevalent now than what I'll call terrestrial gambling—poker machines, horses, keno, lotteries and so on. This is the big problem and challenge for us for the future: to rein in gambling addiction among those who are going online—and, frankly, among those who have gambling devices. I've got one here. I've got a gambling device—my phone—sitting on the table in front of me. I suspect you, Deputy Speaker, have got a gambling device sitting on your table. Everyone in this chamber probably has a gambling device in their pocket or in their hand or in their bag. So we've got to do something, and I think this bill goes some considerable way to reining in gambling addiction.

The scale of what we're dealing with must not be underestimated. Australians lose something like $25 billion a year gambling. That's billions, not millions. That's twenty-five thousand million dollars a year. Sure, a lot of that money is lost by people that can afford it, and that's fine. I'm not anti gambling; I'm actually pro harm minimisation. I'll buy a lottery ticket. I'll join a sweepstake on Melbourne Cup day. There's nothing wrong with people who can afford to lose a little bit of money having a bit of fun and losing money. The problem is, though, when people are losing more than they can afford.

The number of people with a gambling addiction in this country is measured in the tens of thousands—in the tens of thousands, in a country as small as ours! Every one of those gambling addicts is a human tragedy. I've already referred to figures like 46 per cent, and I've referred to learned bodies like the Institute of Family Studies, and I've referred to $25 billion, but all of these facts and figures and reports make it a bit abstract, actually. We all need to remember that every gambling addict is a human tragedy. Every gambling addict is a mum, a dad, a brother, a sister, a son, a daughter, a friend, a work colleague or someone we pass walking down the street. There might even be someone in this room, for all we know, who is battling with a gambling addiction. Those people are often losing their jobs. They're often losing their relationships and their families. They're losing their houses, their health, and sometimes, sadly, they're losing their lives.

It is very hard to get an accurate figure of the number of people who suicide each year on account of their gambling addiction, but good research points to something north of 400 people a year. In other words, more than one person a day in this country takes their life, suicides, on account of their gambling addiction. This is a human tragedy. This is exactly the sort of thing that this parliament should be dealing with. This is exactly the sort of bill that this parliament should be dealing with. I lament the fact that in the 13 years I've been in parliament, it has taken a long time to get traction with the issue of gambling reform, but we are finally getting traction. That gives me great comfort, and I think it gives the community great comfort, that we are now starting to focus on this. This is good.

I suspect every member and senator could come into the House of Representatives or the Senate and recount stories that they have heard from their own constituents. I'm still, to this day, affected by one constituent, a woman, I think in her 30s, she had a couple of young children—they were about this high. Unbeknownst to her partner, she had been taking the housekeeping money and the money for the power bill and had been blowing the lot on gambling. Unbeknownst to her partner, she had been dealing with Aurora Energy in Tasmania, repeatedly, trying to keep the power on. Aurora, to their credit, had put together repayment plan after repayment plan after repayment plan. Ultimately, Aurora said they could do no more. Ultimately, one of the not-for-profit organisations who was trying to help this unfortunate soul said that they couldn't just keep giving that person money, because that person was losing it gambling. The power was cut off. So here we had a young family in a Hobart winter with no power for the stove, no power for the heating, no power for hot water, not even power for the lights. I just hope that family were able to pick themselves up from rock bottom and get on with their lives. This is not an unusual story. I make the point again: I think many people, probably most members and senators, have heard stories like that. It is quite unfathomable to my mind that it has taken so long to get traction in this House, but we are getting traction.

This reform actually complements other reforms. The previous speaker, the member for Dunkley, was talking about BetStop. I think that's a fabulous reform. That will allow voluntary online self-exclusion. It's across the whole country for online gamblers, it allows for a minimum of three months of self-exclusion, up to a lifetime, free of charge. That's a really good reform because even a gambling addict, in their lucid moments, will make sensible decisions. People don't get their pension cheque and go down to the local pub or the local pokies venue with the intention of losing their whole pension. They get their pension and they think: 'This fortnight it's different. This fortnight I'm not going to buckle to my gambling addiction.' Or they'll say: 'I'm not going to pull out my gambling device and blow the lot today. Today is different.' In those lucid moments they make sensible decisions. If you have something like BetStop, which we now have rolling out, in those lucid moments they will set sensible limits on BetStop. BetStop will reduce gambling addiction, just like the government's bill to ban the use of credit cards will reduce gambling addiction. That will save lives. That will save families like the one in Hobart that I referred to. I'm also pleased to say that the industry has thought to improve their messaging in their advertising. It's only a small step, a very small step, but all those small steps add up. I think it's a positive thing.

In the poker machine sphere, we've had some really significant developments in recent years. Being from Tasmania as well, Deputy Speaker Archer, you would be well aware that Tasmania is the first jurisdiction to roll out a mandatory cashless poker machine pre-commitment card. Everyone in Tasmania will soon need to get hold of a card and load up the card with cash in some way, and when they play on the poker machines they'll put the card in. There'll be no cash at the machine. That card will monitor their use of poker machines and their losses, and it will enforce limits on that poker machine player. So, in Tasmania, poker machine players will be limited to $100 a day, $500 a month and $5,000 a year. Although the players will be able to vary the daily and monthly limits, if they want to vary the annual $5,000 limit, they will have to make the case to a government body that they can afford to lose more than $5,000. That is a tremendous turn of events. It is nation leading, and I applaud the current Tasmanian state government for that.

I also note that, in Victoria, there have recently been announcements that they will introduce mandatory carded play, with a maximum $100 load-up at any one time, and trading hour restrictions as well. It's unclear what the time line is in Victoria for these changes. In Tasmania, it's more clear. They've talked about having the cashless card in Tasmania by the end of next year. So we are heading in the right direction, as we should. I know we're talking about online gambling, but I am taking this opportunity to talk about poker machines because of those really positive developments, particularly in Tasmania, in recent times.

This move towards cashless and card based play is actually entirely consistent with the New South Wales Crime Commission's report from October last year, where they found that, in New South Wales, literally billions of dollars of what they called 'dirty money' is going through New South Wales poker machines. It has well and truly opened up the possibility of gambling in that jurisdiction and with those devices being used for money laundering.

But there's still much to do. I would ask the government to consider improving their bill. I note that the bill is deficient because it doesn't apply to all forms of gambling. It really only applies to online and sports betting. That still leaves unaddressed the use of credit for things like lotteries and keno. I know these other forms of gambling have a much lower rate of gambling addiction, but it is still people gambling with money they don't have. These other forms of gambling are still creating some gambling addicts. So I would hope that the government would consider expanding the scope of the bill to go beyond just online and sports betting.

I also note that the bill doesn't apply to all forms of credit. For example, the bill will still allow someone to use their debit card with an online gambling company, but that debit card could be linked, for example, to a line of credit or perhaps a redraw on their home loan. I think there is—I know there is—an opportunity for the government to tighten this bill up further to make sure that all ways in which a gambler might access credit are in fact reined in, not just with the obvious ban on the use of a credit card as such.

I'm pleased the member for Dunkley was the speaker just before me. She referred to gambling advertising. That's an area where the government really needs to act. The government really needs to have a very strong and effective response to the member for Dunkley's committee. She's the Chair of the Standing Committee on Social Policy and Legal Affairs, and they've made some strong recommendations about gambling advertising. I think that's the next big thing for this government to address. Frankly, the community has had—I don't know if this is an unparliamentary word—a gutful of gambling advertising. We're all sick of trying to watch the footy and being bombarded with ads—maybe not during the game but certainly on either side of the game. It's ruining our enjoyment of, particularly, sporting events.

It's also very harmful for children. Gambling advertising is banned during G-rated TV times, but there's a carve-out. Bizarrely, there's an exemption that means it's allowed around sporting events. So on a Saturday or Sunday afternoon, when children are watching their heroes, associated with their heroes is gambling advertising. This has got to be influencing children. So we've got to ban gambling advertising. It's as simple as that.

I note that the Australian Communications and Media Authority did some research and found in one recent year that there was over one million gambling ads aired on Australian free-to-air TV and radio. That's an unfathomable figure—a million ads on free-to-air TV and radio around Australia in just one year! That's got to be having an influence, particularly on our young people, particularly on that 46 per cent of Australians who gamble, who are judged by the Institute of Family Studies to be at risk for problem gambling. Of course, there's also the other reform that would be easily made—in fact, industry insiders tell me it is technically easy and cheap for Australian online-gambling providers to be linked in real time so that when you hit your daily limit with one company, you don't just swipe to the next company and run up your daily limit a second time. There is no good reason why these apps can't be linked.

I am heartened by this progress. I applaud the government for this bill. I will support the bill. I'll take this opportunity to congratulate the countless advocates for reform in this country who for years have battled away. They're starting to see dividends, and I hope that they get comfort from that.

Michelle Ananda-Rajah (Higgins, Australian Labor Party) Share this | Link to this | Hansard source

To our compendium of public health problems, including smoking, diabetes and social isolation, we can now add gambling. Gambling harm travels with other health issues—30 per cent of those seeking treatment for alcohol and other drug or mental health issues are experiencing gambling. It means that clinicians like doctors and front-line healthcare providers need to pointedly ask about gambling when seeing patients with substance misuse or mental health issues, including suicidality, or patients may not disclose their gambling harm.

Australians lose the most money to online gambling per capita in the world. That's a position on a league table that I do not wish to have. Imagine having an additional $25 billion in our national deposit account—the skills, the businesses or the recreational opportunities that have been lost. Like smartphones, online gambling is pervasive, and it has insinuated itself into homes, families and relationships, tearing them apart. In 2022, 44 per cent of adults reported gambling on sports or racing in the past year, and, of those, most have placed a bet using a smartphone or a computer. Of those who gambled on either sports racing or electronic games, two out of three were at risk of harm.

The harms to the hip pocket and relationships are well recognised, but less so are the neurological impacts. Repeated gambling can cause fundamental changes to the brain's reward prioritisation and stress systems, which are similar to those observed in addiction to psychoactive substances. In other words, it rewires your brain, and not in a good way. The mental health impacts can progress to the most severe forms, including suicidality. Gambling is associated with an approximately four times higher risk of suicide. Financial Counselling Australia reported that 80 per cent of specialist gambling financial counsellors had clients talking about suicide, and 48 per cent had clients who had attempted to take their lives.

A division having been called in the House of Representatives—

Sitting suspended from 10 : 38 to 11 : 03

One parent at the recent parliamentary inquiry into online gambling said:

The impacts of gambling on the young generation will be ever lasting … My son fell into the trap after having a couple of wins. Those wins turned into losses and those losses are then chased until there is nothing left but tears and worry and depression.

Findings from the ACMA reveal that online gambling is the fastest-growing segment of the industry in Australia, with more than one in 10 Australians in 2022 having engaged in some form of online gambling over the past six months. The rate of harm among online gamblers is three times higher than among non-online gamblers. In other words, online gambling is more accessible and more dangerous.

The proposed legislation introduces a ban on the use of credit cards for Australian licensed interactive wagering services and the use of credit cards linked to a digital wallet, such as Apple Pay or Google Play. This will bring online wagering into line with land based gambling laws, where credit cards have been banned from TAB outlets, casinos and poker machine venues for more than a decade. Australian consumers deserve the same protections whether they are wagering on land or online. Australians should not be able to gamble with money they don't have, especially in a system that is stacked against them.

The bill also creates a new criminal offence and civil penalty provision related to the ban. Companies who do not enforce the ban will face steep fines of over $234,000. The Australian Communications and Media Authority, ACMA, will also be provided with stronger powers to enforce the ban and existing offences under the act. These reforms are evidence based and have been welcomed by the Australian Banking Association and the Alliance for Gambling Reform. Most importantly, there is a groundswell of community support for them. A recent survey by the Banking Association found that over 80 per cent of Australians believed gambling with credit cards should be restricted or banned, and we agree. The impact of online gambling on an individual and their loved ones can be devastating. Evidence also shows that those who gamble with credit cards are at greater risk of gambling harm and it occurs in a short period of time. It's just too easy to use money that you do not have on an interface that sees into your soul, bombarding you with targeted ads, bright lights and pop-ups.

Credit card transactions are also associated, obviously, with high interest rates and fees, which snowballs the financial burden. The economic burden is a drag on the individual and their loved ones, who are often swept into this swell. Gambling sends out concentric circles of harm to loved ones, with six people affected by high-risk gambling, three by moderate gambling and one by low-risk gambling. The point is that all levels of gambling are associated with impacts on others. The stigma of gambling reduces people to silence or pushes them to suicide. One witness said:

I didn't lose everything, but I always carry the scar of the harm that it caused me. I always have to fight the 'stupid, loser' voice in my head.

A joint study by Federation University and the Coroner's Court of Victoria found that 184 of nearly 5,000 suicide deaths in the state between 2016 and 2019 were gambling related.

Online gambling has been supercharged by the pandemic, fuelled by a combination of confinement boredom, access to early-release super—that was a disaster—and financial worry, fertilised with a bombardment of marketing. Who are the people who've been affected? A study conducted during the early phase of the pandemic in 2020 found that most gambling was online and that young men 18 to 34 years old were the most likely subgroup to sign up and increase their activity and monthly spending, from $687 to $1,075. This is one pandemic hangover we do not need to have. Clearly, bold and decisive reform is drastically needed and needed quickly, which is why we are acting.

This bill complements the suits of reforms by the Albanese government. These include BetStop, a national self-exclusion register for online wagering, which allows people to self-exclude from all telephone and online gambling from three months to a lifetime. Registering with BetStop is free of charge and done through a single transaction and covers every single one of the 150 Australian interactive wagering service providers. This is a significant reform, as it provides vulnerable consumers with the power to self-exclude from online wagering and to exclude themselves from the harms associated as well.

The government is considering the recommendations from the parliamentary inquiry into online gambling and its impacts on those experiencing harm. This excellent report includes 31 recommendations that apply a public health lens to online gambling in order to reduce harm from children all the way through to adults. One of these recommendations is for the Australian government, with the cooperation of the states and territories, to implement a ban on all forms of advertising for online gambling, to be introduced in four phases over three years. This bill, in conjunction with the other actions of the Albanese government, will minimise the harm from online gambling. For many Australians, it will be life changing and even life saving. I commend this bill to the House.

Cameron Caldwell (Fadden, Liberal National Party) Share this | Link to this | Hansard source

It is typical of the Australian character that we all like to have a laugh, have some fun and enjoy the occasional punt to try our luck. There's nothing wrong with that, and we should endeavour to refrain from infringing on it and the Australian way of life wherever possible. But today I rise to speak on the Interactive Gambling Amendment (Credit And Other Measures) Bill 2023, largely in relation to the undue influence which our largest betting companies are increasingly holding over the Australian way of life. Advances in betting, both in terms of technology and the adjacent relationship to financial products, particularly interest-bearing credit products, are cause for concern.

I want to reflect briefly on the budget reply speech that the Leader of the Opposition gave, where he rightly proposed:

If the internet influences our children, so does content on our television screens. In our country, footy time is family time, but the bombardment of betting ads takes the joy out of televised sports. Worse, they're changing the culture of our country in a bad way and normalising gambling at a young age. Many Australian families have had enough. That's why tonight I announce that a coalition government will move to ban sports betting advertising during the broadcasting of games. Ads would be banned for an hour each side of a sporting game. I encourage the Prime Minister to work with us on this initiative to get it implemented now.

I echo the sentiment of the Leader of the Opposition as the incessant promotion of gambling material can only serve to reinforce existing habits and perpetuate those behaviours in vulnerable or at-risk individuals. The reduction of harm for individuals, their families, careers and other relationships should be a bipartisan issue. This is why it's a pity that the Labor Party did not take the opportunity that was extended by the coalition earlier this year to rein in gambling ads during live sport and voted against that proposal. Nonetheless, we remain steadfast in our determination to promote balanced policy, reflective of the times in which we live. I was heartened by the comments from the member for Dunkley earlier in this chamber, where she, quite properly, identified the real issues around this TV advertising.

Indeed, according to the Second national study of interactive gambling Australia(2019-2020), prepared by Gambling Research Australia, the prevalence of online gambling more than doubled from 8.1 per cent of gamblers in 2010 to 17.5 per cent of gamblers in 2019. In that same period, the study recorded a statistically significant increase in problem gambling amongst the community, with the estimated prevalence of problem gambling doubling from 0.6 per cent to 1.23 per cent. It is not hard to find a correlation between the two. When you overlay the previous stats with the uptick in credit card usage for the purposes of gambling, the correlation is striking. According to the most comprehensive gambling stats available, resulting from the 2019 national online survey, we understand credit cards only narrowly trail debit cards as the second most used form of payment for betting. In circumstances where almost as many people are defaulting on their credit cards as those who use surplus cash from their debit cards, we know an increasingly large segment of people are playing with fire. At a time when Australians are facing a cost-of-living crisis under this Labor government, now more than ever people can't afford to be losing money to gambling, especially money that is not theirs in the first place.

Whilst we cannot, and should not, altogether overregulate or rub out gambling and the gambling industry, how, other than the Leader of the Opposition's proposal to the Prime Minister regarding advertising, might we move to strike a better balance to protect individual liberties whilst ensuring responsible gambling?

This bill, the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, seeks to reduce gambling harm, particularly for those using interest-bearing debt instruments to fund their gambling activities. The proposed ban would also bring online gambling into line with the existing ban on the use credit cards for land based outlets, including TABs, casinos and poker machines. From an economic perspective, it makes sense to level the playing field between the local TAB or racetrack and the online bookmakers. As a standalone issue, there is no rationale for why online bookmakers should have exclusive jurisdiction to garner business from gamblers intending to use a credit card. If we don't favour the prospects of one company over another in the sectors of the economy, there is no reason to permit it in these circumstances. The bill has broad-ranging support from some of the key stakeholders within the gambling community. I understand Responsible Wagering Australia supports the reform, as does Sportsbet and the Alliance for Gambling Reform.

The proposal isn't entirely new. The majority of the reform measures stem from the Wallace inquiry, prepared by the former government's chair of the Parliamentary Joint Committee on Corporations and Financial Services, Andrew Wallace MP. The thorough undertaking, via a comprehensive review, yielded a few insights which have informed the draft amendment. Firstly, it is quicker and easier to lose large sums of money when gambling online, in comparison to other forms of gambling. Secondly, the scale of the financial hardship can be magnified when credit cards are used. In modern times, when Australia's annual gambling losses are estimated at $25 billion, the addition of credit products to the mix only exacerbates problem gambling and its associated financial and social harms.

While the opposition supports the bill in principle, it must be noted that there remains the capacity for more severe unintended consequences to arise. For example, we on this side of the chamber understand that policy considerations and legislative amendments do not happen in a vacuum. Contrary to those who might be idealists, we are realists, and to that end we strongly support the review mechanism two years from commencement of the bill. It's incumbent on the government to ensure the review is as wide-reaching as possible, noting that the effects of problem gambling are multifaceted and not confined to just the one person. It has been suggested by the Gambling Treatment and Research Clinic that the most at-risk individuals may be inclined to seek out even riskier means of finance, including services from payday lenders and pawnbrokers. The government must be prepared to act swiftly on the outcomes and recommendations of the review and will rightly be held accountable for any acts or omissions which are not in the best interests of the community.

This bill is really about closing an issue that's arisen through the adjacency of technology. It's all too easy to pick up your telephone and access a gambling app online and to simultaneously use your Apple Wallet, with a credit card, to pay for it. It's the adjacency of technology which means that legislation and change of legislation must continue to evolve in this space. Noting the delicate balance between protecting individual freedoms and the net benefit to the community of minimising problem gambling, I do intend to support this bill.

Carina Garland (Chisholm, Australian Labor Party) Share this | Link to 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.

Andrew Willcox (Dawson, Liberal National Party) Share this | Link to this | Hansard source

I rise today to speak on the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023. For many Aussies, taking a punt is part of everyday life. It's almost as if our cultural stereotype is being a laidback lad or lady throwing another shrimp on the barbie, and our life depends on it. We're nonchalant about everything else. Why not with our money? After all, you can't take it with you. Everyone here knows someone who frequently visits the track for a bet on the dogs or the horses, loves their Keno in the afternoon or can't go past backing their favourite footy team in the grand final, even if the odds are not in their favour. How many of your local pubs have rows and rows of pokies calling your name when you've gone for a cold one with your mates? And Santa? Well, according to him, scratchies are the ideal Chrissie present for your favourite friend, family member or even your favourite coworker during the office Christmas shindig.

Gambling has always been prominent in Australia, and since COVID and the shutdown of our favourite local watering holes, Australians have embraced online gambling wholeheartedly. A quick Google search will show a list of at least 138 online-gambling websites ready and waiting to take your money. Some are backed by Australian companies, others are backed by overseas-owned companies, making super profits off the back of hardworking Australians. The thrill of a win and chasing that addictive dopamine hit over and over again can have dire consequences, leading to harm for the gambler and their families, careers and relationships. The stark reality is that it can destroy lives, and as policy makers it is our job and our responsibility to adopt sensible policies that reduce harm to our people.

Earlier this year, the coalition took positive steps with a bill to ban gambling advertisements during live sporting events. It was a policy that we know had strong support from the community, because they're sensible people, unlike the Labor Party, who—surprise, surprise—oppose the bill, even when they know families and kids will be watching. To that point, more and more frequently we are seeing online video games play ads that are appealing to children and other young people promoting online simulated gambling games. How are they paying for these? It is with mum and dad's credit card that's linked to the Google or Apple Pay account, sometimes without their parents' knowledge. Now Australians are gambling with credit, and they don't even know it.

To do our job and to mitigate harm, this bill we're talking about today, the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, aims to do just that—to reduce harm to everyday Aussies who might not have the ability to self-regulate when it comes to their gambling decisions. This bill is, in large part, a result of an inquiry by former Speaker and member for Fisher, Mr Andrew Wallace, and a report from the Parliamentary Joint Committee on Corporations and Financial Services. The committee investigated the regulation of the use of financial services, such as credit cards and digital wallets, for online gambling in Australia and delivered a report that was published in late 2021. The most important recommendation to come out of this report is to ban the use of credit cards, digital wallets that are linked to credit cards, digital currency and cryptocurrency in online gambling. This recommendation would bring online gambling in line with offline gambling. The average punter is unable to walk into a pub, a TAB or a casino or other gambling venue and use their credit card to place a bet. The use of credit cards in physical venues was banned in the early 2000s. But today, in 2023, anyone can sit on their couch, in their office or even right here in Parliament House and place a bet online—day or night—with their credit card at the touch of a button. It really doesn't make sense.

For anyone who is a little bit worried about the adverse effects of this bill, it was also recommended that any changes that are made do not have any negative consequences for lotteries, including not-for-profits, charities and newsagents. We all know that charities and not-for-profits benefit greatly from such activities, and we are not here to negatively impact those organisations. What we want to do, as I said before, is minimise harm for those that are most at risk. We already know that traditional gambling and people who gamble with their own money can fall into trouble. However, the world of online gambling utilises credit, and racking up a debt can send people into a whole new world of hurt and financial and emotional stress. What may or may not shock some people is that Australia is by far the gambling capital of the world when it comes to gambling losses per capita. Total consumer losses in Australia in 2018-19 were approximately $25 billion. Research conducted by the gambling treatment and research clinic at the University of Sydney found that over half of the online gamblers surveyed who used their credit cards met the criteria for problem gambling, and one fifth of Australian consumers were using their credit card with their online gambling accounts.

I think it is important to differentiate between credit cards and debit cards. What the bill is recommending is not the ban to use debit cards or Mastercard debit cards. It's to ban the use of credit cards. It's about stopping an addictive gambler's ability to borrow lines of credit, which often come with extremely high transactional costs and even higher personal costs. When credit providers process gambling transactions, they treat them as cash advances. As such, these transactions can attract interest rates as high as 25 per cent, which are applied from the instant the transaction is made. Much like when you're using plastic to pay for anything else, there is the total mental disconnect between the transaction and the thought of ever having to pay it off. Then, all of a sudden, your credit card statement has arrived. Let's say you spent $1,000 that month on gambling, and you've incurred a 25 per cent interest on top of that. Times that by 12 months in the year, and the simple maths says that that's a hell of a lot of dosh.

Which demographic spends more of their household disposable income on gambling every year? If you guessed the low-income earners, you would be correct. And I'll give you this little bit of trivia for free: problem gamblers in low-income households spend the equivalent of four times their average yearly utility bills on gambling. Do you think that during an Albanese Labor government created cost-of-living crisis our households, particularly our low-income households, can afford to fall prey to online gambling addictions and extraordinary amounts of credit card debt? No; I don't think so. Even the biggest stakeholders in the gambling game support the amendments to this bill. So really it's a no-brainer.

Responsible Wagering Australia, the peak body for the gambling industry, has given this bill their full support. SportsBet have voiced their support and back the introduction of a ban on Australian online gambling services accepting credit cards and digital currencies as payment methods. The Alliance for Gambling Reform says that it advocates for and supports a ban on credit card use for online gambling. Financial Counselling Australia welcomes the ban. And the Australian Banking Association supports the ban and welcomes the establishment of consistency across online and offline gambling.

The gambling industry clearly supports clamping down on credit card use for online gambling, and we should as well. And while I understand that there are those who believe such decisions about using credit cards should be left to the individual, this bill is paramount to protecting the people of Australia and their families from the potential harm from problem gambling as well as the social cost, including the cost of crime committed to fund gambling addictions, loss of productivity and work related costs, family and relationship breakdowns, divorce and bankruptcy, potential homelessness as well as emotional and psychological issues, including distress, depression, suicide and violence, which costs Australians billions of dollars a year. It is far too great to ignore, and it's about time online gambling played by the same rules as offline gambling.

While I support this bill, there is, however, one inclusion made by the Labor government that I take issue with. I am talking about the Labor government's patterns in the chamber all the time, and of course the pattern of the Albanese Labor government—getting too excited and taking things too far—continues. My issue is that the Labor government wants to give the minister the keys to the bank. They want to give the minister all the power to ban other payment mechanisms for online gambling whenever the minister wants, by way of a legislative instrument. This is giving way too much power to one person. In line with our democratic system, one person should not have all the power to make decisions such as this.

I would like to see part of this bill being reworked and a call for any future proposed bans to return to parliament to allow for bipartisan support. While we all probably think we're right a lot of the time, one person does not have the ability to see every point of view or see every option. So, for this policy to be as beneficial for all the Australian people as possible, we need the thoughts and ideas of multiple people to be considered. This bill is a positive step forward in our responsibility and in our jobs to adopt sensible policies that remove and reduce harm to the people of Australia.

With the cost of living skyrocketing, interest rates being higher than ever and families struggling to pay their mortgages or put food on their tables, the Australian people don't need the burden of insurmountable gambling debts hanging over their heads, threatening their future with their mortgages. This bill doesn't take away our ability to have a good time. This bill is actually preserving our way of life and our ability to have a good time responsibly and within our means. With this Labor-created cost-of-living crisis that Australians are living in at this particular point in time, we cannot afford to have our most vulnerable spending money outside of our needs.

Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) Share this | Link to this | Hansard source

I am very pleased to rise to support the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023. Through this bill, the Albanese government is banning the use of credit cards and credit-like products on online gambling. We take seriously our responsibility to prevent and reduce harm from online gambling. As the Minister for Social Services, I'm pleased to lead the government's ongoing work in this space alongside the Minister for Communications. Earlier this year, the government committed to legislate this ban, which was recommended by the Parliamentary Joint Committee on Corporations and Financial Services. This bill delivers on that commitment. It amends the Interactive Gambling Act 2001 to ban the use of credit cards and credit related products for online gambling, including credit cards linked to a digital wallet or e-wallet, as well as digital currencies.

About 15 per cent to 20 per cent of people who wager do so with credit cards, and they are more likely to experience gambling harm. A study by the Gambling Treatment and Research Clinic found that around half of the customers who use their credit card for online gambling met the criteria for problem gambling. It's pretty simple: people should not be betting with money they don't have. This overdue reform aligns with the existing bans on credit card and land based gambling for TAB outlets, casinos and pokies, which have been in place since the early 2000s. You can't use your credit card to place a bet for land based gambling, and the same rules should apply for online gambling as well.

The bill also expands the Australian Communications and Media Authority's compliance and enforcement powers to ensure strong and effective enforcement of the new and existing penalty provisions under the act. Consequently, there will be considerable penalties for contravention of the ban, with companies facing fines of up to $234,000. We're serious about protecting vulnerable Australians from the harm we know online gambling can cause. That's why penalties are important for any platform breaching the new rules.

The bill is the latest step in the government's ongoing efforts to prevent and reduce gambling harm. While many Australians can enjoy a punt, we know gambling and online gambling can cause harm. Along with the obvious financial impacts, gambling can pose a risk to a person's physical and mental health, wellbeing and relationships. A ban on the use of credit cards and credit related products for online gambling will help reduce the incidence of this harm by immediately and effectively stopping people from gambling with money they don't have. This is common sense and well overdue.

Australia has the highest gambling losses per adult in the world, with a total of $25 billion in losses per annum or $1,300 per adult per annum. Online gambling is growing in Australia, partly due to the ease of access through mobile devices. In less than 10 years, participation in online gambling has more than doubled, equating to approximately 3.5 million Australian adults. Around one million online gamblers in Australia are at risk for experiencing some degree of gambling harm. These statistics speak to the need for consistent and ongoing efforts to prevent and reduce harm from all levels of government. It can't be a set-and-forget exercise, and it's something we are working closely with our state and territory counterparts on.

Banning credit for online gambling is an important next step for us to take. Many people, including harm reduction advocates and those people representing the gambling industry itself, support this measure. The bill has drawn on consultation with a wide range of stakeholders, including harm reduction advocates, wagering and lottery providers, and banking and payment organisations. Furthermore, research released by the peak banking body, the Australian Banking Association, has found that more than 80 per cent of Australians believe gambling with credit cards should be restricted or banned. It is clear there is widespread support for the introduction of this important protective and preventative measure. Industry and consumers will have a six-month transition period from the date of Royal Assent to change their business and betting behaviours respectively.

This bill strongly aligns with government's broader agenda to reduce harm from online gambling. It's part of a suite of initiatives we've been delivering. Since coming to office, we've wasted no time in implementing all the remaining measures of the National Consumer Protection Framework for Online Wagering. The national framework has 10 measures that provide people with easy-to-use tools and information to safely manage their gambling. The framework was launched in 2018, but when we came to government there were still four outstanding measures, which we implemented once coming to office. Since then, we've implemented the monthly activity statements that clearly show customers their wins and losses. We've introduced a requirement for the training of staff of wagering companies about how to minimise the risk of gambling harm. We've implemented the new evidence-based taglines that replace the previous 'gambling responsibly'. Examples of the new taglines include: 'Chances are you're about to lose', 'What's gambling really costing you?' and 'You win some, you lose more.' These messages must appear in all advertising across all platforms such as customer online-gambling accounts, print and broadcast marketing, and sponsorship and advertising activities.

In August, the Minister for Communications and I launched BetStop—the self-exclusion register. By signing up to BetStop, people can immediately exclude themselves from all telephone and online gambling services for a minimum of three months up to a maximum of a lifetime. Since commencement, there have been over 9,000 registrations, which is a great uptake. Many of these people are choosing to exclude for a lifetime. Complementing BetStop last month, we've implemented mandatory pre-verification, meaning wagering companies must verify a customer's identity when they register for a new account and before they can place a bet. This strengthens the protections for underage Australians and for those self-excluded through BetStop. These are some of the steps our government has taken in the last 18 months to prevent and reduce harm from online gambling.

With BetStop up and running, all 10 measures under the National Consumer Protection Framework for Online Wagering are in place. In addition to the framework, the government has worked with jurisdictions to update the classification rules for online and video games to protect children from being exposed to gambling, and the Minister for Communications recently announced mandatory minimum classifications for computer games containing gambling-like content.

Preventing and reducing gambling harm requires a multipronged approach and consistent focus. This bill is only the latest part of the many actions our government has taken. Earlier this year, I convened the first meeting of gambling ministers from across the Commonwealth, states and territories since 2017. At this meeting, all ministers reaffirmed their shared commitment to pursue actions to minimise harm from online gambling. Part of our consideration of what will come next will include considering the findings from the recent parliamentary inquiry into online gambling undertaken by the House of Representatives Standing Committee on Social Policy and Legal Affairs. The committee made 31 wide-ranging recommendations, covering issues like public health principles, national strategy, simulated gambling, gambling advertising, research, data, and evidence. The government is carefully considering the report and its recommendations. There is more to do, but I am proud of the steps we've taken so far, and assure those listening that the Albanese government will continue to work to create a safer environment for Australians at risk of gambling harm. I commend the bill to the House.

Zoe McKenzie (Flinders, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, which is supported by the coalition, as indicated in the shadow minister's second reading speech on Tuesday, because it derives from policy work led by the coalition in 2021. Specifically, the recommendations of the Parliamentary Joint Committee on Corporations and Financial Services in its inquiry into regulation of the use of financial services such as credit cards and digital wallets for online gambling in Australia, published in November 2021. That report recommended a ban on the use of credit cards and digital wallets as payment methods for online gambling, bringing the online gambling world into line with the offline gambling world, like in casinos or pokie venues, where credit cards have been banned—in a credit sense—for over 20 years.

Australia now has a significant problem with gambling, and, increasingly, that problem has become a digital one. For many, gambling has moved beyond a fun flutter with friends or family at the horseraces or on the footy field. There was a particular uptick in online gambling during the COVID years, when it was one of the few social exchanges Australians—in particular, Victorians, with our 262 days of lockdown—could engage in. But today we have a problem, and it's a big problem. Australians lose over $25 billion a year gambling, and we lose the most on online gambling in a per capita sense—in fact, 20 per cent more than any other country in the world, according to the Alliance for Gambling Reform.

Increasingly, that loss is occurring via the online platforms, unsurprising given that the uptake in online gambling has more than doubled over the decade to 2020. Roughly 10 per cent of the Australian adult population now gambles online, and the ease of using these platforms also means that more is being spent on them. It is estimated that approximately four per cent of online gamblers meet the criteria for problem gambling but that up to 30 per cent are at risk of experiencing a degree of gambling harm. Earlier this year, the Australian Medical Association referred to this kind of harm in their media release of 7 March:

The harms of gambling and addiction are far reaching in our society. As well being linked to comorbid mental health disorders and substance abuse, gambling harm can also cause family breakdowns, exacerbate domestic violence, cause financial distress and loss of employment and isolate people from support networks.

Like all addictions—gambling needs to be understood as a health issue, free of stigma, with appropriate treatment and support offered by qualified health professionals.

Today, many of us directly know someone with a gambling problem. It might be a husband, a brother, an aged aunt, a father, a much loved son or a co-worker. Watching them tackle this problem is heartwrenching and often involves a full family effort to help the problem gambler get back on his or her stable financial feet. We must all do more to address it and, indeed, the underlying reasons which lead to it.

It was part of the reason why, in the last sitting period, I hosted a symposium in this place regarding internet and gaming addiction. I thank the remarkable people from the Australian Gaming and Screens Alliance, especially Brad Marshall, Director of the Screen and Gaming Disorder Clinic in Sydney, and Wayne Warburton, associate professor in psychology at Macquarie University, as well as Professor John Saunders, Jordan Foster, Dr Daniel King and Dr Huu Kim Le. Together with brain experts, child and adult psychologists, and researchers from across the Australian university network, they gathered here in Parliament House in mid-September to discuss the condition of the two per cent to three per cent of young Australians whose internet and gaming use has become problematic, contributing to the likelihood of a problem of addiction and possibly gambling when they become adults. Australia has very little by way of services to address screen and gaming addiction. In fact, the three-month treatment program that was designed for young gamers by Professor Warburton is, tragically, at risk of cessation due to a lack of funds and the demands it places on the volunteers, who work with the kids, primarily teenage boys, to find alternative purpose and play outside screens and gaming.

This bill puts some necessary guardrails around online gambling, making it slightly more difficult to fall into debt through the ease of online gambling with a credit card. The bill amends the Interactive Gambling Act to prohibit credit cards, digital currency and digital wallets, making it a little harder for problem gamblers to overspend and send themselves into a debt trap.

I'm pleased to observe that one of Australia's major betting companies, Sportsbet, supports this change in recognition that we all have to do more to address gambling harm in this country. The bill provides ample time for our betting companies to set up the administrative changes they need in time for the bill to come into full effect, given the many technical changes that will be required to identify when credit is actually being used. I commend this bill to the House.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

I think my contribution will be about one minute long, but I just want to clarify and perhaps correct the record, having listened to the previous speaker and a number of other opposition speakers. There is no disagreement that this bill is necessary and overdue. And the minister who's sitting here is absolutely right to bring it forward to the House, for it to be a government bill, to ban the use of credit cards for online gambling.

It's a gold medal that Australia does not want to win but, sadly and tragically, we do: we have the highest per capita loss for online gambling of any people of any country in the world. This bill is right to ban credit cards for online gambling, to bring it into line with the rules in the real world. Some people choose to gamble—it's legal. But gambling addiction destroys lives—untold thousands of lives in my community, one of the poorest in Melbourne. If people choose to gamble they should gamble only with money they actually have, not fake money on a credit card or a loan, and money they can afford to lose. In that sense, this bill is overdue.

But I want to correct the record, because there was a bit of misleading sanctimony from some previous speakers. I really commend the member for Flinders on the work you've done and outlined on this issue, but you're a new member, and I just want to clarify one thing. You said that this policy work was driven by the previous government. But let's not be too cute. This was a righteous crusade of the member for Fisher personally, when he chaired the corporations committee, before he was elected Speaker, and the work died at that point. Your party room was split. The previous government never responded to it. We know this, because we were pushing for it, and I was engaging with some of your members of good conscience who wanted to see this happen. But there was no will in the former government in the party room to take on the gambling lobby, and I commend the member for Fisher for his work in bringing this forward. It is to his credit.

I'm pleased that the committee adopted it, but it is a pity that the former government chose never to respond to the report and, as I think everyone knows, was never going to actually do this. So, let's not get too cute and claim credit for the former government for this. It was absolutely driven by a number of members of good conscience, and I really applaud you on the work you're doing on this issue.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

To take up the remarks of the member for Bruce, albeit brief: yes, he is correct when he says that by their very nature credit cards are looking at credit; it's money that gamblers do not have, money that is not in their bank. To ensure that that is a provision of the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023—very much the centre point of the bill—is a good thing, because people shouldn't bet money that they don't have. When they lose, as ultimately they do, that can often lead to a spiral of debt and despair.

As I said, as the member for Bruce said and as the member for Flinders pointed out, they do not have the money. I know that the communications minister, who brings this legislation to the parliament, does, like me, enjoy to have a flutter and to go to the races. Indeed, we've been to the races together with our respective spouses and enjoyed a good afternoon out. And I don't want to be criticised here, but there does come some personal responsibility when it comes to gambling, when it comes to betting. People have to have personal responsibility. We don't want to see nanny-state provisions. We don't want to see wowserism. But I appreciate the points the member for Bruce made, and I appreciate the intent of the minister. I know full well, and I agree completely with, the sentiments expressed by the member for Flinders.

We all know that, for some, betting can lead to harm, not only for themselves, but it also has a terrible impact on their families, carers and other relationships. All too sadly, when disaster relief payments have been made in recent times, in regional areas—I know, speaking from experience—the amount of money put through poker machines at various clubs has soared to record levels. Then when those relief payments were exhausted the trend went south. That is an unfortunate aspect whenever additional money is available that should be spent on other things. That is why, dare I say—and I'm not digressing too far—the cashless welfare debit card was so important, because it meant that money wasn't going to be spent on gambling; it was going to be spent on the practical things of life for those vulnerable remote communities.

In contrast to what the member for Bruce said about this particular bill and other aspects of gambling and the need to curb it, it is why the coalition took positive steps earlier this year with a bill to try to ban gambling ads during live sport—a policy which those opposite voted against. It's why on budget reply night, 11 May 2023, the opposition leader said:

In our country, footy time is family time, but the bombardment of betting ads takes the joy out of televised sports. Worse, they're changing the culture of our country in a bad way and normalising gambling at a young age. Many Australian families have had enough. That's why tonight I announce that a coalition government will move to ban sports betting advertising during the broadcasting of games. Ads would be banned for an hour each side of a sporting game. I encourage the Prime Minister to work with us on this initiative to get it implemented now.

Some of the ads that are put up on television almost seduce the viewer to part with their money, to have a bet, to have a flutter on a team—and if that team leads at half time, you don't lose your bet. There are all of these sorts of things—the sheer bombardment, as the opposition leader called it, the repetition of these ads—which, let's face it, are of concern.

The Wallace report was tabled in November 2021. The election was called on 10 April, arguably giving the coalition no time to legislate, in answer to the member for Bruce's rebuke about why the previous government didn't act. We all come to this place, to be fair, in an effort to ensure that those people who cannot help themselves, who have a gambling problem, have good and tight and secure legislation that encompasses the elements contained herein.

As I said, most of the changes proposed in this bill are not new. They were recommended by an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services in late 2021. It was a review into regulation of the use of financial services such as credit cards and digital wallets as payment for online gambling in Australia, chaired by the member for Fisher. It recommended a ban on the use of credit cards and digital wallets as payment methods for online gambling.

The Wallace inquiry report cited total customer losses in Australia at—wait for it—$25 billion. That is $25 billion going down the gurgler. That is $25 billion that could be spent on building community capacity, on helping families, on making sure that people don't get into that cycle of debt and despair, as I referenced earlier. Responsible Wagering Australia said 20 per cent of Australian consumers were using credit cards with their online wagering accounts.

The inquiry report highlighted the combination of online gambling and credit exacerbated problem gambling and its associated social and financial harms. It said that this combination could lead to:

… extreme financial hardship, loss of—

job—

bankruptcy, and broader harms including relationship breakdown, mental illness and homelessness—

and, even worse, suicide. We know that. And the report identified:

… two key reasons for the speed and severity of the harm from combining online gambling and credit.

I know the bill would provide for a new criminal offence and for civil penalties under the situation with methods determined by the minister to:

… prohibit an operator of a regulated interactive gambling service … from accepting or offering to accept payments from a customer … in Australia using: a credit card; payments linked to a credit card (including digital wallets); digital currency (such as cryptocurrency); or other methods determined by the Minister.

The bill is good inasmuch as it ensures that credit cards are very much looked at, but it neglects to resolve a major loophole in the form of video game loot boxes and item trading. The bill doesn't extend to credit cards that may be used by children and adults to purchase in-game digital currencies and loot crates that are then used to gamble. I'm not quite sure whether this is an oversight. I'm not quite sure whether this can be looked at. But the industry is being used as a means of money laundering and scams—that is a sad fact—with billions of dollars being easily channelled into the market and becoming very, very difficult to trace in what is a highly unregulated industry.

I have young children. Well, they're not so young now. But my two boys certainly enjoyed video games, and I know there are other parents in this place whose children currently do or formerly did. Many popular video games are getting more sophisticated and more enhanced. They now offer a digital marketplace in which items, costumes and weapons in games can be obtained through purchasing in-game items with real money or by spending money to open what are called loot crates, which give items of varying values purely by chance. These items are not only used in games where they may offer a competitive advantage but often resold for real currency in a speculative market. This speculative market is based upon the rarity of the item. I have seen a weapon skin in one popular video game sell for—wait for it!—more than US$400,000. That's an extraordinary figure. It truly is. Many of these games contain loot box features, and their online gambling markets can be worth billions of dollars.

Ordinary, everyday kids and mums and dads across Australia are playing these games every day and being introduced to online gambling. They do it in all innocence. They do it because they enjoy it. It has features that make kids want to play it more often, get better at it and get to the next level. But sophisticated game makers are inventing and producing these videos that are introducing otherwise innocent children to a world of online gambling. It can lead to spending way too much time on these games, getting caught up and then using mum and dad's credit card, if mum and dad are off doing other things and the child is left as a latchkey kid. The child might know the PINs et cetera. Then things can get out of hand.

It's adults, too. I know many adults enjoy these games to destress from work. They're spending thousands of dollars out of addiction or are in an attempt to make money through gambling. Of course, once you're in the cycle, it's hard to then get out of that cycle. There's absolutely no doubt about it: it's a de facto form of gambling. It's addictive. I would say it has a seductive appeal to children. But it is exempt from the gambling bill.

In summary, this is legislation that is good and worthwhile. There are elements of it that could be improved. I know there have been amendments put forward. Often that is the case. The inquiry report's findings were backed up by the results of a recent review into this bill by the Senate Environment and Communications Legislation Committee. I want to note a couple of things there. The Senate inquiry report, which was tabled recently, identified that 30 per cent or nearly a third of Australian online gamblers—that's around a million people—were at risk of, or experiencing, a degree of gambling harm. That is a tragic figure. The report cited research by the Gambling Treatment and Research Clinic at the University of Sydney, which found that 54 per cent of surveyed participants who reported using their credit card for online gambling met criteria for problem gambling. Gambling using credit cards is already banned at land based sites. This issue now is about the use of credit cards for online gambling.

When it comes to gambling, in New South Wales recently the government there has taken action to deliver on the election commitment it made to reduce problem gambling by moving to ban external signage, such as 'VIP lounge', from pubs and clubs across the state by 1 September 2023. I note, interestingly, that a letter to the editor in my local newspaper today indicated that pubs are still putting up signs saying, 'Open until 3 am.' Some might wonder why pubs would be open till 3 am in country centres, but, still, the state government felt the need to ban that gambling-related signage. That happened in September.

We need to do more to ensure that people's hard-earned money is not wasted on gambling. We need to do more to help problem gamblers. At the same time, as I've said before, we also can't go down the path of becoming a nanny state, and we certainly can't go down the path that some would, which is banning gambling altogether. At the end of the day, some of these industries contribute vitally to this nation. I would also put forward that the horseracing industry employs 80,000 people, and most of those are in regional Australia.

Giddy-up! Thank you, Member for Bruce. Without those horseracing clubs, communities would be much the poorer, and certainly our charitable organisations would be much the poorer, because they rely on horseracing, thoroughbred clubs—trots and greyhounds too—to earn the dollars that they otherwise could not raise themselves.

Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

In June 2023, the House Standing Committee on Social Policy and Legal Affairs, of which I'm a member, completed its inquiry into online gambling after 40 hours of hearings and 161 submissions. The committee's report, You win some, you lose more, includes 31 recommendations. These 31 recommendations urge this government to respond with a national strategy for online gambling harm reduction based on public health principles. This reflects the very broad consensus and alarming supporting data that gambling does a great deal of harm—not just significant financial harm but psychological and social harm too. This data is strongly supported by multiple submissions the committee received, many of which are informed by personal lived experiences, close observation and participation in the gambling industry.

At its most extreme, gambling amounts to a recognised disorder and is medically identified as a behavioural addiction. It has a material effect on the brain's reward, prioritisation and stress symptoms. Gambling disorders impact individuals but also lead to problems for their families and invariably impact their workplace and broader society. Some groups are more vulnerable: young men, young people generally, culturally and linguistically diverse groups, Aboriginal and Torres Strait Islander people, and people with mental health conditions or substance abuse issues. Australians lose approximately $25 billion a year on legal forms of gambling, representing the largest per capita losses in the world.

The research is telling us that, compared to land based gambling, the risks of harm associated with online gambling are far higher. Online gambling is particularly insidious because it's private, it's socially invisible and it's accessible 24/7. It is easy for companies to use your personal information against you. Through algorithmic decisions, spending opportunities will be configured to target your vulnerabilities and how you play. This is largely because of the highly accessible and immersive technology used for online gambling apps and interfaces, as well as the especially pervasive advertising associated with online gambling.

There's been a threefold increase in gambling advertising over the last decade, estimated at a massive $287 million in 2021, an increase of $16 million from 2020. Wagering operators have developed and targeted advertising platforms and strategies to promote their products on television and radio and in print, but they are becoming increasingly sophisticated with online and more interactive platforms, social media, and direct messaging. The result is that gambling is now completely normalised in every aspect of Australian life through ever-present advertising. We should be very concerned.

This amendment, the Interaction Gambling Amendment (Credit and Other Measures) Bill, is a small but significant amendment towards addressing the harms of gambling in Australia. It is a timid, small start. The Interactive Gambling Act already regulates online and over-the-phone gambling services and prohibits wagering service providers from providing credit to customers. This bill will amend that act to prohibit the acceptance of credit cards, credit related products and digital currency as payment methods for interactive wagering services for customers who are physically present in Australia. By banning the use of credit cards and digital currencies for interactive services, this will create the much needed consistency and bring online gambling services and products in line with in-person gambling transactions, where credit cards have been banned in each state and territory for almost 20 years. So I welcome and support this amendment to ban the availability of credit and digital currency payment options and consequential sanctions and penalties.

I note from submissions made to both inquiries before the Standing Committee on Social Policy and Legal Affairs Committee and the Senate Environment and Communications Legislation Committee that major wagering companies do not oppose this ban. Tabcorp agrees that wagering customers should only be able to conduct their wagering activity with their own clear funds. This is worth noting. The hard work on gambling reform that will affect the profits of gambling companies is yet to come. We must also remain alert to the continued involvement of foreign companies that dominate the newer online gambling market, engaging in predatory behaviours to continue to pursue high profits. Whilst this amendment bans the use of credit and digital currencies in relation to customers physically present in Australia, it's highly likely that foreign wagering companies will explore ways to get around the ban.

As welcome as this amendment is, it's nevertheless an isolated measure. The many reforms we need to address should be done in concert with each other as part of a dedicated national gambling strategy. As the social policy and legal affairs committee concluded some months ago, that strategy should be viewed through the lens of gambling harm reduction and based on public health principles. I urge the government to make a commitment to developing a national strategy that will address harm from gambling rather than fragmented reforms initiated by individual portfolios. There should be a single portfolio and minister with responsibility for executing this national strategy for gambling reform. As an example of fragmentation, the government has chosen in this amendment to exempt lotteries and keno products from the credit ban in this bill. Developing technologies and the proliferation of new apps have changed the impact of lottery and keno products and will continue to do so as technology advances and wagering companies continually innovate to maintain their high sales. This highlights the imperative for a broad national gambling strategy that approaches the whole industry from the perspective of public health and financial harms rather than addressing siloed reforms.

Reviews into online gambling and illegal offshore gambling are not new. Following a 2015 review, the Liberal government decided to set up a Commonwealth and state government National Consumer Protection Framework for Online Wagering. Eight years on, the final framework reform, the BetStop platform, was introduced in August this year. The purpose of BetStop is to empower individuals to sign up voluntarily to exclude themselves from wagering platforms. The first problem with BetStop is that I'm not convinced it's working. A constituent of mine signed up to exclude himself from 100 platforms, and he still received a barrage of promotional material. The second problem with a measure like BetStop is that it puts the onus on the individual. I applaud anyone who can voluntarily exclude themselves from activities that will cause them and others harm, but, as with many addictions, not everyone can do this successfully. It is not a fair fight between the online gambling companies who have 200 pieces of data about each customer and the individual battling with gambling issues. The point is that gambling in this country has become a public health issue, and we need all these measures and many more across the country to provide consistency as part of a targeted national gambling strategy.

One of the most important areas that requires reform is gambling advertising. There's really broad community agreement that we have a problem. In mid-2022 a survey showed 71 per cent of Australians supported a ban on gambling ads. This support isn't partisan; it's well-spread across voting intentions. I've been contacted by more 50 constituents seeking action on this issue. So, where there's clearly strong support for better regulation, why is the government dragging its heels on reform?

The committee recommended a phased and comprehensive ban on online gambling advertising. It's sensible and achievable and would provide key sports codes, broadcasters and other stakeholders with a period in which to adjust to an Australia that doesn't normalise and promote gambling. The opposition's recent support for banning ads during free-to-air sports broadcasts is welcome, but we need to go much further, into online ads and other types of promotion. Otherwise, the ads just shift. Partial bans will always deliver, at best, only partial results.

We need a bold and brave approach that stands up to vested interests across this industry—to the media, to sporting codes and to money and power. Gambling is a public health issue. I support this bill, but I again call for the government to commit to the development of an effective national gambling strategy with a central purpose of reducing social and other harms, one that addresses not only the pressing issues relating to all forms of gambling advertising but other significant priorities as well, including a consistent regulatory framework across the country, a coordinated public education campaign, a mechanism to monitor and develop consumer protection for interactive gaming and simulated gambling, and the banning of all political donations from gambling companies.

Michelle Rowland (Greenway, Australian Labor Party, Minister for Communications) Share this | Link to this | Hansard source

I would like to thank those who have contributed to the debate on the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, which would amend the Interactive Gambling Act 2001 to ban the use of credit cards for online wagering. I was pleased to be in the chamber for the comments by the member for Riverina, and I acknowledge his concerns but also highlight the reforms announced last month in respect of classification reform for loot boxes and simulated gambling in games. The classifications scheme is one way to address concerns with gambling features in games. I've also asked my department, as I announced, to look at other options, including consideration of secondary gambling markets for objects that can be purchased through loot boxes. This issue of illegal secondary markets is an area of concern that is being examined.

As has been noted, Australia has the highest gambling losses per capita worldwide, with a total of $25 billion lost annually. Online gambling is growing in Australia because of the proliferation of online gambling applications. There is a high correlation between credit card wagering and online wagering harm. Betting with money you don't have can lead to devastating consequences. Recommendations from the 2021 Parliamentary Joint Committee on Corporations and Financial Services inquiry highlighted that reform is needed. You can't use your credit card to place a bet for land based gambling, and the same rules should apply for online wagering.

The government is taking action to protect Australians and their loved ones from online gambling harms. This bill will ban the use of credit cards and credit related products, such as digital wallets and digital currency such as cryptocurrency, as payment methods for Australian licensed interactive wagering services. This change will have the immediate impact of stopping people from gambling with money they do not have. Consistent with the recommendations from the 2021 parliamentary joint committee, the bill does not apply to lotteries, including the fundraising activities of not-for-profits and charities, because lotteries are a lower-harm form of gambling.

On 14 September 2023 the Senate referred the bill to the Environment and Communications Legislation Committee for inquiry and report by 12 October 2023. The committee examined the scope and impact of the amendments, including whether lotteries should be included in the ban. The committee recommended that the bill be passed, stating:

The committee recognises that online gambling causes significant harm to many Australians. The measures put forward by this bill will implement important changes to the Interactive Gambling Act 2001 to mitigate some of these harms.

The committee also recommended that the Minister for Communications undertake a review over the next 12 months into the regulation of Keno-type lotteries under the act. Since receiving the report, I have asked my department to investigate the impact of the use of credit for Keno-type lotteries. The bill will also allow the communications minister, by legislative instrument, to proscribe new credit payment products that might be used to circumvent the ban as they emerge. The bill will also expand the Australian Communications and Media Authority's powers to ensure strong and effective enforcement of the new and existing civil provisions under the act. These reforms align with the government's broader commitment to harm minimisation.

The government is currently considering the comprehensive recommendations handed down by the House of Representatives Standing Committee on Social Policy and Legal Affairs inquiry into online gambling. Any reforms taken forward from the inquiry will complement measures by the government that the government already has put in place to reduce gambling harms, including: launching BetStop, the National Self-Exclusion Register, which allows people to voluntarily self-exclude from all telephone and online gambling for three months up to a lifetime; progressing classification reform to protect children from gambling-like features in computer games; and implementing new evidence-based taglines that convey the risks and potential harm from online wagering to replace 'gamble responsibly'.

This bill is an important and necessary step towards protecting Australians from online gambling harms. I thank my colleagues for their contributions and commend this bill.

Bill read a second time.