The Lottery Corporation insists on credit card ban exemption

The churn of regulatory measures that have inundated the Australian gambling industry has proven overwhelming to follow for even the keenest and most interested observer. Yet, there are several matters, including the recent introduction of a credit card ban for the purposes of gambling that has caught the eye of consumers, businesses, and legislators.

Enacted earlier this year, Australia has succeeded in banning credit cards from gambling, but the ban has rightly ruffled some feathers. The Lottery Corporation, for one, wants to receive an exemption from this measure, the Sydney Morning Herald reported, citing the company.

The Lottery Corporation is also reported to be the only gambling entity that is seeking an exemption, whereas many of the impacted mainstream companies such as Sportsbet and Tabcorp have said that they are happy to enroll the measure in a bid to raise standards for consumer safety and responsible gambling.

The argument in favor of the exemption that The Lottery Corporation is putting forward is shared by the company’s Chief Executive Officer, Sue van der Merwe, who cites the negative impacts that this measure will now have on newsagents and retailers in general.

He bases this argument on the fact that lottery products are the least addictive of any gambling options out there, which van der Merwe believes is sufficient grounds to have the exemption enacted. His opinion is echoed by The Australian Lottery and Newsagents Association, but not everyone agrees.

For one, Financial Counselling Australia’s Lauren Levin has argued to the Senate that the lottery sector is actually the cause of serious gambling harm and they should be the subject of the same player protection measures as all other gambling products. Levin has also rebuked another argument put forward by the lottery, describing itself as a "small business" but citing $3.5bn in revenue in its 2023 financial year.

Levin further argued that the status that lotteries sought did not really fit their stature, as they were neither a small business nor unharmful. This opinion was succinctly shared by Responsible Wagering Australia, an industry lobby group, that said that it is looking for ways to swiftly implement the government’s proposal.

Responsible Wagering Australia and its members do not argue against the core idea behind the credit card ban, i.e. that players should only be playing with their own money. Regardless of the case, the Lottery Corporation is arguing, an exemption to a credit card ban given the current political and public mood is very unlikely.

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