Australia has recently implemented a ban on using credit cards and cryptocurrencies for online betting in order to tackle the issue of gambling problems. This means Australians will no longer be able to gamble using borrowed money or anonymous digital funds. The ban extends to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and any future forms of credit. This regulation is in line with the ban on credit card payments in physical casinos. However, online lotteries are still permitted to accept credit card payments. In the past, Australia had a thriving market for online casinos that accepted cryptocurrencies like Bitcoin, which appealed to gamblers for their speed and anonymity.
Kai Cantwell, CEO of Responsible Wagering Australia, has called on the government to broaden the prohibition to encompass the exempted forms of gambling. This move is seen as a crucial measure to protect customers and help them stay in control of their gambling behaviour. Lawmakers voted in favor of the amendment to the Interactive Gambling Act 2001 late last year, followed by a six-month transition period. Companies that fail to comply with the ban could face fines of up to AU$234,750 ($155,085). The communications regulatory authority has also been granted increased authority to enforce the restrictions. Additionally, the federal government is considering a proposal to gradually eliminate gambling advertisements over a period of three years, as one of 31 recommendations from a parliamentary inquiry on problem gambling.
Despite the ban on using credit cards and cryptocurrencies for online gambling, Australia is a key player in the crypto market, with a growing number of people owning and using cryptocurrencies. The country ranks 9th in the world for crypto adoption, with 17% of the population owning crypto, which is higher than the global average of 15%. Australia recently approved two new exchange-traded products that allow investment in crypto assets, signaling increasing acceptance of cryptocurrencies in the country. The ban on using credit cards and cryptocurrencies for online gambling is part of efforts to regulate and control the gambling industry in Australia, with measures being taken to protect consumers and prevent problem gambling.
Minister for Communications Michelle Rowland mentioned that further announcements regarding measures for preventing gambling will be made in the future. The government’s stance is that Australians should not be gambling with money they do not have. The decision to ban the use of credit cards and cryptocurrencies for online gambling is aimed at promoting responsible gambling practices and ensuring that individuals are not using borrowed money or anonymous digital funds to gamble online. With the increase in crypto adoption in Australia and the approval of new investment products for crypto assets, the country is navigating the balance between embracing cryptocurrency innovation and regulating online gambling to address gambling issues and protect consumers.
