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After Australia’s ban on credit cards for online gambling, the policy proved effective — just not in reducing gambling-related harm.
With credit cards banned for use in online gambling for over a year now, since June 2024, new research shows that, while it made gambling using debt more inconvenient, it didn’t deter those most negatively affected by gambling. The Australian government hoped that the ban would prevent people borrowing to support gambling habits, thereby reducing gambling harms.
However, research from the e61 Institute shows that credit cards made up only a small share of online sports gambling before the ban was in place, with just 2% of credit card accounts being used for gambling at the beginning of 2024.
Credit cards played a small role in online sports gambling before the ban.
By early 2024, less than 2% of credit cards were used for gambling – likely because gambling transactions were treated as cash advances, with higher fees and rates of interest. 2/7 pic.twitter.com/VaqXEByzt5
— e61 Institute (@E61Institute) December 2, 2025
What’s more, those who did gamble with a credit card typically had a stronger financial position than other users, often having higher incomes and more cash on hand. This meant that, despite using debt to gamble, they were likely not financially at risk as a result of online gambling.
Credit card users’ gambling habits did change
Nonetheless, the policy did succeed in reducing online gambling for this group, with online gambling expenditure falling by around AUD $50 ($33) per fortnight. Around a third of the affected group of credit card users stopped gambling altogether, or at least had no recorded gambling transactions in the six weeks following the ban.
The ban reduced online sports gambling for this group. Gambling expenditure fell by about $50 per fortnight, driven by a 15% fall in the probability of gambling each fortnight.
One-third of the affected group stopped gambling altogether in the 6 weeks following the ban. 4/7 pic.twitter.com/oozmdTGZnb
— e61 Institute (@E61Institute) December 2, 2025
“These effects reflect inconvenience rather than credit constraints,” explained authors Aditya Maitra and Matthew Maltman. “Declines in participation were largest for small bets (spending less than $10 per week) and were not correlated with financial outcomes such as liquidity constraints or debt holding.”
While the data shows that a policy change certainly influenced gambling behavior, the focus of this policy doesn’t seem to have targeted those most at risk of gambling-related harm. The Institute noted that other policies would likely be more effective, such as targeting poker machines where “harms appear to be more concentrated”.
Other policies currently up for debate in Australia to reduce gambling-related harm include improving age verification processes to protect young people and social pressure to reduce gambling ads.
Featured image: Unsplash
