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Using a credit card for gambling
Make sure you know what it will cost when you use your credit card for gambling transactions.
Updated
Credit cards are convenient, but if you want to place a bet on the Melbourne Cup, pay for lotto tickets or play poker online, they are usually an expensive choice. Most credit card providers classify gambling transactions as distinct to standard purchases and charge high rates (up to 25.95% p.a.) and fees for them.
Credit card companies that charge the cash advance rate for gambling transactions
Card providers typically categorise gambling transactions as cash advances because they are often “cash equivalents” or “cash substitutes” (ie, you spend money to get another form of money). These transactions attract cash advance fees and the higher cash advance interest rate. Also, cash advances are typically exempt from an interest-free period, which means interest starts to accrue on your gambling transaction the day it takes place. In this table, you can discover which providers allow gambling transactions and the range of cash advance interest rates for personal credit cards.
Bank provider | Gambling Transactions | Cash Advance Rate (varies by card) |
---|---|---|
American Express | Able to use on some gambling sites | 21.95% or $2 per transaction in New Zealand (The American Express Platinum card) |
ANZ | Cash advance rate | 20.95% |
ASB | Cash advance rate | 22.95% |
BNZ | Cash advance rate | 18.95% to 22.95% |
Gem Visa | Cash advance rate | 25.95% |
Kiwibank | Cash advance rate | 22.95% |
TSB | Cash advance rate | $2 per transaction in New Zealand |
The Warehouse | Cash advance rate | 22.95% |
Westpac | Cash advance rate | 22.95% |
Factors to consider when using a credit card for gambling
Make sure you contemplate these factors before using your credit card for gambling transactions:
- Interest rate. 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 25.95% (at the time of writing).
- Cash advance fee. In addition to the interest charges, your provider will charge a cash advance fee, which is the greater of either a percentage of the transaction amount or a minimum fee. The cash advance fee is usually 3 to 4%, which means you can expect to pay $15 to $20 in fees for a $500 sporting bet.
- No interest-free days. Cash advances are not eligible for the standard interest-free period on your card, which means interest starts to accrue as soon as you make a gambling transaction.
- Rewards. As with cash withdrawals from an ATM, travellers cheques and other similar cash equivalent transactions, you usually can’t earn credit card reward points for gambling transactions.
- Promotional offers. Credit cards that occasionally offer 0% interest or bonus points for new customers will likely exclude gambling purchases from the list of “eligible transactions” required to take advantage of these deals.
Tom uses his credit card to place a bet on a tennis match.

- Tom pays the minimum amount each month
Assuming his card balance was $0 before that transaction and this remains the only transaction on his card, Tom will pay $5,735 in total over 16 years and nine months.
- Tom pays the full amount after 30 days
Assuming again that this is the only transaction on his card, Tom will have to pay $36.15 for 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 $2,000 principle, which means he will pay $2,096.15 in total.
- Tom pays the total amount later that day
Assuming this is the only transaction on his card, Tom will 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 his $2,000 principle, which is $2,061.20 in total.
Now you’re aware of the fees that may be incurred if you use your credit card for gambling transactions; it may be wise to consider alternatives. There are fee-free ways to pay for your wagers, such as debit cards, prepaid cards or cash. You can also research and explore E-wallet solutions like Skrill and Neteller, or PayPal. However, PayPal has stringent rules around gambling transactions and prohibits many forms altogether. Whatever you decide, always remember to gamble responsibly.
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