Using a credit card for gambling… is very expensive
Some credit cards let you spend money on gambling, but they treat it as a cash advance transaction. This means you get hit with high interest charges and a fee.
Key takeaways
- Credit cards have been banned for gambling in-person at hotels, clubs, casinos and TAB outlets since the early 2000s. Using credit cards for online gambling was banned in 2023.
- You can use a credit card to buy scratchies or lottery tickets. And you could in theory withdraw cash from an ATM via a credit card to spend on gambling.
- Both options are treated as cash advance transactions that come with a fee, and you get charged a high interest rate immediately.
Must read: Do you need help?
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.
Credit card companies that charge the cash advance rate for gambling transactions
If your credit card allows you to make gambling transactions, the charge will typically be categorised as a cash advance.
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.
| 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 | 21.74% p.a. |
| 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. |
Using a credit card at gambling establishments
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 get charged incorrectly you may have to contact your credit card provider and explain the transactions were not for gambling.
"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. "
Buying lotto tickets with a credit card
You can use a credit card to buy lotto tickets or scratchies 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.
What to think about before using a credit card for gambling
- Interest rates. The cash advance interest rates on most credit cards are usually much higher than your regular purchase transaction rates. This rate can reach as high as 25.99% (at the time of writing).
- Cash advance fees. In addition to the interest charges, you will be charged a cash advance fee, which can be the greater of either a percentage of the transaction amount or a minimum fee. The cash advance fee is typically worth 2–4% of the transaction, which means it would cost you between $10 and $20 for a $500 bet.
- No interest-free days. Cash advances are not eligible for the standard interest-free period on your card. This means that interest begins accruing immediately when you make a gambling transaction.
- Rewards. As with cash withdrawals from an ATM, travellers’ cheque purchases and other similar cash equivalent transactions, you will not usually be able to earn credit card rewards points for gambling transactions.
- Promotional offers. Credit card offers that intermittently reward new customers with bonus points will likely exclude gambling purchases from the list of “eligible transactions” required to take advantage of those deals.
Example: How much could a gambling transaction on my credit card cost?
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:
- If you pay the minimum amount each month. If your card balance was $0 before the gambling transaction, and this remains the only transaction on the card, you would pay $5,735 in total over 16 years and 9 months.
- If you pay the full amount after 30 days. Assuming again that this is the only transaction on your card, you would have to pay $36.15 in interest (21.99% x $2,000 x 30/365), plus $60 for the cash advance fee (3% of $2,000). This is on top of the original $2,000, bringing the total you'll pay off the card to $2,096.15.
- You pay the total amount later that day. Assuming that this is the only transaction on your card, you would have to pay $1.20 in interest (21.99% x $2,000 x 1/365), plus $60 for the cash advance fee (3% of $2,000) on top of your $2,000 bet. This means it would cost $2,061.20 in total.
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.
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.