Australia is prohibiting the use of credit cards and cryptocurrencies for online gambling, a major move to safeguard its citizens from financial harm. In fact, on June 11, the government had already enacted these new restrictions, which carry significant fines for noncompliance.
The new regulations impose fines of up to 234,750 Australian dollars, or around $155,000, on any betting operator that permits customers to gamble online using credit cards or digital currencies. That encompasses credit cards that are connected to electronic wallets, cryptocurrencies such as Bitcoin, and other credit products that have only recently emerged.
These newly adopted online betting regulations correspond with the current land-based gaming legislation in Australia. There are a few exceptions, though, including using a credit card to pay for the lottery online.
“Our government takes seriously our responsibility to prevent and reduce harm from online wagering. Our ban on credit cards will help with this goal. You can’t use your credit card to place a bet for land-based gambling. Now the same rules apply for online gambling.”
Amanda Rishworth, Australia’s Minister for Social Services
Long-standing practices among cryptocurrency users include betting on everything from meme coins to regulatory actions like the acceptance of spot Bitcoin exchange-traded funds (ETFs). Even though cryptocurrency fans frequently place large bets, they also like to place more whimsical wagers, such as forecasting temperature rises. This has put the crypto betting industry in the spotlight for quite a while with concerns ranging from harm to even money laundering.
What Next?
When the new regulations went into full force, the government granted the gaming sector’s actors a six-month grace period to adapt. Australia’s communications regulator has been given the authority to enforce these limits, ensuring that service providers follow the new rules.
Kai Cantwell, CEO of Responsible Wagering Australia, an independent group representing Australian-licensed gambling service companies, applauded the government’s decision. He stressed that by assisting people in keeping rein in their gambling habits, this strategy lowers the possibility of losses. This certainly makes the transition quite easy as it would have been harder with the same kind of scenarios seen in other markets.
Additionally, Cantwell asked the government to think about making exempt gambling of any kind illegal. He cautioned that if protection policies are uneven, players may be drawn to less regulated gaming venues, which might put them at greater risk of injury. Offshore sites are a huge hit in many markets and this would likely see their dominance dwindle.
