Australia has implemented a significant regulatory change in its gambling industry by banning the use of credit cards and cryptocurrencies for online betting. As of June 11, Australians can no longer place bets using borrowed money or anonymous digital funds. This move aims to mitigate gambling-related issues by making it harder for individuals to gamble with money they do not possess.
The ban encompasses credit cards linked to digital wallets and widely-used cryptocurrencies like Bitcoin. This regulation brings online betting in line with physical casinos, where credit cards have long been prohibited. Notably, online lotteries remain exempt from this ban and can continue accepting credit card payments.
In recent years, Australia’s online casino market has seen a surge in cryptocurrency usage due to its speed and anonymity. A 2019 study highlighted that 30.7% of Australian gamblers utilized cryptocurrencies for online gaming, underscoring the popularity of digital assets in the gambling sector.
Kai Cantwell, CEO of Responsible Wagering Australia, has praised the government’s decision and advocated for extending the ban to other exempt gambling forms. According to Cantwell, this measure is crucial for helping people maintain control over their gambling behaviors, promoting responsible wagering across the board.
This legislative change stems from an amendment to the Interactive Gambling Act 2001, passed by lawmakers late last year. Following a six-month transition period, companies must now comply with the new rules or face substantial fines of up to AU$234,750 ($155,085). The communications regulatory authority has been empowered to enforce these restrictions, ensuring strict adherence to the new guidelines.
In addition to this ban, the federal government is contemplating a gradual phase-out of gambling advertisements over three years. This consideration follows recommendations from a parliamentary inquiry into problem gambling. Minister for Communications Michelle Rowland emphasized that Australians should not gamble with money they do not have and indicated that further measures would be introduced to address gambling-related issues.
Despite these regulatory efforts, Australia remains a prominent player in the cryptocurrency market. The country ranks ninth globally for crypto adoption, with 17% of the population owning digital assets, which is above the global average of 15%. Reflecting this increasing acceptance, Australia recently approved two new exchange-traded products for crypto asset investment, indicating a growing interest and trust in digital currencies.
This regulatory shift marks a pivotal moment in Australia’s approach to gambling and cryptocurrency usage. It highlights the government’s commitment to fostering a safer gambling environment while acknowledging the evolving landscape of digital assets. By implementing these measures, Australia aims to balance innovation with consumer protection, ensuring that gambling remains a controlled and responsible activity.
