Digital gambling payments methods: Harm-minimization policy considerations

Abstract

According to the Reserve Bank of Australia Governor, cash has become a “niche payment instrument” and efforts are needed to inform policies and regulations regarding digital payment methods. The Covid-19 pandemic has highlighted the health risks of handling cash and accelerated the transition of customers and retailers to embracing digital payment methods. Globally, authorities, acting on expert health advice, have recommended businesses and customers use digital payment methods to minimize transmission of Covid-19. Gambling remains one of the few industries worldwide that has a high reliance on cash and in many cases has regulation prohibiting the use of digital payment methods., The reliance and requirement to use cash within gambling venues is at odds with consumer sentiment and technological advances and there are increasing cases of cashless payment methods being expanded. International trends suggest that at some point in the increasingly near future, gambling regulators will have to address the issue of digital payments for gambling. This paper describes the potential harm-minimization applications which should be established within any digital payment systems. Careful consideration is needed to ensure that digital gambling payments do not exacerbate gambling problems and may be used to contribute to consumer protection efforts. Given the lack of empirical research in this area, policy makers and stakeholder organizations should prioritize research trials to enable evidence-based policies. This paper comes at a critical time when Covid-19 is changing consumer preferences and behavior, accelerating industry innovation, and the risks of cash increasingly outweigh the benefits.