In late October 2009, the Australian Government’s Productivity Commission released its Draft Report on Gambling. The Report puts forward a number of draft findings and draft policy recommendations on addressing the economic and social impact of gambling.
Access to cash and credit is addressed in some detail within the Draft Report, with a particular focus on ATM/EFTPOS facilities within gambling venues.
In its draft findings, the Productivity Commission identifies a link where access to ATM/EFTPOS facilities does appear to increase spending by problem gamblers. However, an outright ban of such facilities is seen as having 'uncertain benefits and costs'.
In this context, the draft recommendation is for a $200 per day limit on cash withdrawals from ATM/EFTPOS facilities in gaming venues across Australia. The Report suggests this would be a 'per card' limit similar to that being introduced in Victoria. There are also draft recommendations that ATM/EFTPOS facilities be located a reasonable distance from the gaming floor, as well as visible to the public and venue staff yet not visible to gamblers from the gaming floor. ATM and EFTPOS devices should also have warnings and help messages regarding problem gambling affixed or nearby.
The other draft recommendations, which reflect measures already adopted in certain States, include a ban on the use of credit cards for gambling purposes, requiring winnings over $250 to be paid by cheque or direct credit and tightening cheque-cashing within venues.
The Draft Report and more information about the Inquiry on Gambling can be found here.
The Productivity Commission will submit its final report to Government by 26 February 2010.
EFTPOS interchange fee regulation
APCA’s submission to the Reserve Bank of Australia (RBA) on proposed changes to EFTPOS interchange fee regulation was made on 23 October 2009.
In its original September 2009 consultation paper, the RBA proposed to alter its restrictions on EFTPOS from the existing interchange fee band of between 4 to 5 cents to the card acquirer to a new 12 cent cap of interchange fees to the card issuer.
Following a period of consultation, the Payments System Board (PSB) decided at its 23 November 2009 meeting to take a slightly different approach. The PSB agreed to maintain the existing 4 to 5 cents to the card acquirer restriction for bilateral EFTPOS interchange fees while introducing a 12 cent cap to the card issuer for any future EFTPOS multilateral interchange fees.
The RBA says these changes are intended to facilitate and stimulate competition between EFTPOS and scheme debit systems.
The amended standard came into force on 1 January 2010 and is available on the RBA website.
Click here to access the 23 October 2009 APCA submission.
APCA submission to Department of Human Services Discussion Paper
As reported in the previous edition of Payments Monitor, the Minister for Human Services, Chris Bowen MP released the Better Dealings with Government: Innovation in Payments and Information Services Discussion Paper on 14 September 2009.
APCA made its submission to the Discussion Paper on 30 October 2009. The submission outlined the importance of the Department and its agencies (such as Centrelink and Medicare) as users of the payments system and the need for engagement with industry. APCA identified a number of projects arising out of the Low Value Payments Roadmap that would benefit from the Department’s input. The APCA submission also outlined a process for further consultation between the Department and industry.
The Discussion Paper and related material can be found here.
Click here to access APCA‘s submission.