Gamblers who use their credit cards to fund online betting habits will soon be out of luck as the federal government moves to ban the practice.
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The ban will bring online gambling into line with in-person services where credit cards cannot be used.
The legislation will be introduced later in the year after consultation with the industry.
Communications Minister Michelle Rowland said there was widespread community support for the ban.
"It's as simple as this: people should not be betting with money they do not have," she said.
"Legislating a ban on the use of credit cards for online gambling will help protect vulnerable Australians and their loved ones."
The communications watchdog will be granted extra powers to enforce the ban, which will use bank identification numbers to find and block credit card payments.
Lotteries, such as those used by charities, will be exempt due to the low risk of harm.
Social Services Minister Amanda Rishworth said the government was not against Australians having a punt, but did not want people to use debt to finance their gambling.
Australia's largest gambling company Tabcorp said it supported banning credit card use for online betting.
"Regulation of the industry is rightly an increasing focus for the government and the community. Tabcorp embraces this, and we want to be part of creating a better balance," a spokesman said in a statement.
"A ban on credit cards is an important step in creating a safer and more enjoyable entertainment experience for all customers."
The spokesman said the company was committed to measures to identify, intercept and help potential problem gamblers as early as possible.
Independent MP Andrew Wilkie, who has long championed gambling reform, said the ban would be an important start to minimise gambling harm.
But he did not want the process of legislating and implementing it to be slowed down by further consultation when it already had widespread support.
"The fact that online gamblers have been allowed to use borrowed money at exorbitant interest rates is unfathomable," he said.
Parliamentarians are also looking at the pitfalls of gambling advertising in sport, and if there are better ways to stop young and vulnerable people being hit with ubiquitous betting messages.
The government has already introduced new advertising regulations for gambling services, including large taglines at the end of each ad.
Mr Wilkie said no silver bullet would solve problem gambling, but together the reforms would make a significant difference.
Australians are some of the most prolific gamblers in the world, having the highest losses per adult.
They lose $25 billion each year, with an estimated one in 14 Australians experiencing, or at risk of experiencing, gambling harm.
Australian Associated Press
