Australia enforces comprehensive prohibition on credit and cryptocurrency for online gambling
The Australian government has implemented a new regulation to address the issue of problem gambling by prohibiting the use of credit cards and cryptocurrencies for online betting. This ban includes credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and other forms of credit, preventing Australians from placing bets with borrowed funds or anonymous digital currencies.
The restriction on online betting now mirrors that of physical casinos, where the use of credit cards has also been banned. However, online lotteries are exempt from these regulations and still allow credit card payments.
Kai Cantwell, CEO of Responsible Wagering Australia, is calling on the government to expand the ban to cover all forms of gambling that are currently exempt. He believes that this measure is crucial in protecting customers and helping them maintain control over their gambling behavior.
Last year, lawmakers approved an amendment to the Interactive Gambling Act 2001, prohibiting gambling providers from offering certain online services to Australians. Companies were given a six-month transition period to comply with the new regulations, facing fines of up to AU$234,750 for non-compliance. The communications regulator has also been given increased authority to enforce these restrictions.
In addition to the ban on credit cards and cryptocurrencies, the federal government is considering a proposal to gradually eliminate gambling advertisements over the next three years. This proposal was one of 31 recommendations made during a parliamentary inquiry into gambling issues in the country. Communications Minister Michelle Rowland emphasized the government’s commitment to implementing further measures to prevent gambling in the future.
Australia’s online casino market had previously accepted payments in digital currencies like Bitcoin, attracting gamblers with fast and anonymous transactions. A study conducted in 2019 found that 30.7% of Australian gamblers had used cryptocurrencies for online gaming.
Recently, Australian tax authorities have been focusing on crypto investors, requesting personal information and details from crypto exchanges. Meanwhile, Australia’s first spot Bitcoin ETF is set to launch on Tuesday, further indicating the increasing interest and regulation of cryptocurrencies in the country.
