The Australian government is taking action to address the issue of problem gambling by prohibiting the use of credit cards and cryptocurrencies for online betting.
A recent report on June 11 stated that the ban includes credit cards connected to digital wallets, cryptocurrencies such as Bitcoin, and any other new forms of credit. This means that Australians will no longer be able to place bets using borrowed money or anonymous digital currencies.
The new regulation for online betting is in line with the rules for physical casinos, where the use of credit cards is also prohibited. However, the ban does not apply to online lotteries, which still accept credit card payments.
Kai Cantwell, CEO of Responsible Wagering Australia, is calling on the government to extend the ban to cover all forms of gambling that are currently exempt.
“This is a crucial step to safeguard customers, making it simpler for individuals to manage their own gambling habits,” Cantwell stated.
Last year, lawmakers approved changes to the Interactive Gambling Act 2001, which prohibits gambling providers from offering certain online services to people in Australia.
Following this, gambling companies were given six months to comply with the new regulations. Failure to comply with the ban could result in fines of up to AU$234,750 (approximately $155,000).
The communications regulator has also been given increased powers to enforce these restrictions.
In addition, the federal government is considering a proposal to phase out gambling advertisements over a three-year period. This proposal was one of 31 recommendations put forward during a parliamentary inquiry into gambling issues in the country.
Communications Minister Michelle Rowland mentioned that more regulations to prevent gambling in the future would be announced by the government.
“Australians should not be gambling with money they do not have,” she emphasized.
In the past, Australia had a thriving market for online casinos that accepted payments in digital currencies like Bitcoin. The fast and anonymous nature of transactions offered by these cryptocurrencies was attractive to gamblers.
A study even found that in 2019, a significant 30.7% of Australian gamblers participated in online gaming using cryptocurrencies.
Recently, tax authorities in Australia have been focusing on millions of crypto investors, requesting their personal information and details from crypto exchanges.
For more information, Australia’s first spot Bitcoin ETF is set to launch on Tuesday.