If you want to place a bet on the Melbourne Cup, pay for scratchies and lottery tickets or play poker online, credit cards are usually very expensive. Most credit card providers categorise gambling transactions differently to everyday purchases and charge high rates (up to 29.99% p.a.) and fees for them. Others don’t let you use your card to gamble at all.
In fact, credit cards have been banned for gambling in-person at hotels, clubs, casinos and TAB outlets since the early 2000s. Credit cards can still be used to gamble online but in 2023, the government introduced legislation that would ban them. At the moment, the decision to allow these transactions remains with individual banks, credit card providers and businesses.
Using a credit card for gambling can lead very quickly to a very serious debt trap for consumers and this debt cycle can be extremely difficult to break. Online gambling a fast growing form of gambling so it’s imperative that this loophole is finally closed. ”
If you're affected by gambling, you can access free, confidential and 24-hour counselling through the Gambling Help Online chat service or by calling 1800 858 858.
If your credit card allows you to make gambling transactions, the charge will typically be categorised as a cash advance. This is because gambling charges are often "cash equivalents" or "cash substitutes" (ie. where you spend money to get another form of money).
These transactions attract a cash advance fee and a higher cash advance interest rate than everyday purchases. And you'll be charged interest straight away. Here, you can see details for some of the biggest credit card providers:
| Provider | Gambling transactions | Maximum cash advance rate (varies by card) |
|---|---|---|
| American Express | Prohibited | N/A |
| ANZ | Cash advance rate | 21.99% p.a. |
| Bankwest | Cash advance rate | 21.99% p.a. |
| Bank of Melbourne | Cash advance rate | |
| Bank of Queensland | Prohibited | N/A |
| CommBank | Cash advance rate | 21.99% p.a. |
| Citi | Prohibited | N/A |
| Great Southern Bank | Prohibited | N/A |
| HSBC | Cash advance rate | 25.99% p.a. |
| NAB | Cash advance rate | |
| St.George | Cash advance rate | 21.99% p.a. |
| Suncorp Bank | Prohibited | N/A |
| Virgin Money | Prohibited | N/A |
| Westpac | Cash advance rate | 21.99% p.a. |
If you're at a gambling establishment, using your credit card for non-gambling activities – such as buying drinks or meals – could also attract the cash advance fee and interest rate.
When this happens, it is because the establishment’s merchant category code is preset to process gambling transactions. So, when the charge goes through to your credit card company, it will most likely be processed as a gambling transaction or cash advance.
If you're planning to use your credit card for a dinner, drinks or anything else at a venue that allows gambling, call your credit card company first and ask them if your spending would be considered a purchase or a cash advance.
Alternatively, get a receipt for your spending and – if you think it is wrongly processed as a cash advance – contact your issuer and explain the transactions were not for gambling.
At the moment, you can use a credit card to buy lotto tickets at most news agencies and other authorised outlets that accept credit card payments.
The Australian Lottery and Newsagents Association (ALNA) has also said buying lotto tickets in-store should be excluded from any regulatory changes around credit cards and gambling. In a submission to the ABA (pdf), it said that lottery products "pose a very low risk and are considered low harm" compared to other forms of gambling.
Say you decide to use your credit card to place a total of $2,000 worth of bets on a sporting event. On a credit card with a 3% cash advance fee and a cash advance rate of 21.99% p.a., here’s what could potentially happen:
Now that you’re aware of the fees that a gambling transaction could incur on your credit card, it may be wise to consider some alternatives. There are fee-free ways to pay for your wagers, such as debit cards or cash. If you’d still rather use a credit card, check out these low cash advance rate cards.
You could also research and explore workaround E-wallet solutions like Skrill and Neteller or PayPal – although PayPal has its own strict rules around gambling transactions. Whatever you decide, always remember to gamble responsibly.
A buy now, pay later account offering spending limits up to $8,000, low interest for higher balances, and no overseas transaction fees.
Find credit cards that make international spending cheaper with 0% international transaction fees.
Insights and analysis on American Express credit cards, costs, acceptance and more.
Discover exactly how the average Australian uses their credit card.
Compare credit cards that give you an outcome within 60 seconds of when you submit your application online and find out how to increase your chances of getting this type of "instant" credit card approval.
Compare introductory credit card offers that give you bonus rewards points, 0% p.a. balance transfers, interest-free periods and waived annual fees when you sign up for a new card.
Get a percentage of your spend back, gift cards or vouchers with a cashback credit card. Find out more and compare current offers in our guide.
You deserve the best credit card. Let us help you find it.
Check out bonus point offers and travel perks such as lounge access and complimentary insurance with these Velocity Frequent Flyer credit cards.
Calculate how much you're paying in interest based on your current credit card repayments and discover how much you should pay each month to meet your financial goal.
Is there a credit card that counts transfers to betting agencies as purchases, with an interest free period on purchases.
Hi Aaron,
Thanks for your question.
As you can see from the page above many card issuers consider purchasing gambling chips or token as cash advances, and many also consider transfers as cash advances as well. I’m unaware of any specific card issuers that would classify this type of transaction as a purchase.
I hope this has helped.
Thanks,
Elizabeth
Have used Visa Card with foreign Lotto agent, then cancelled transaction /card. St.George did not allow me to answer the merchant (not sending my fax @ a local branch & thus refused to honour the cancellation? Because they claim of the type of merchant – I did not know this or we’re not advised after 6-8 month of transactions? Do I not have the right to cancel my money transaction? My Money after all?
Why did they have the right not to fax my specially hurried letter over night before the dead line! Then not do the cancellation & still debit my Card A/C -$4500? What happened to customer service?
I have now paid this money myself because the Bank did not like the Merchant – last payment? Please advise – email soon. Thanks – Reiner
Hi, Reiner.
Thanks for your question.
If you have a potential dispute with your card issuer, you can take the issue up with the Financial Ombudsman service. This service is available to people who have a dispute with their financial services provider and is free of charge. But the first step should be to take the issues to the complaints department at St.George. If they are unable to resolve the issue, take it to their customer relations team. The next step after this should be the Financial Ombudsman service.
I hope this helps.