The Australian government has implemented a new measure to address the issue of problem gambling in the country by prohibiting the use of credit cards and cryptocurrencies for online betting.
A recent report on June 11 revealed that the ban includes credit cards connected to digital wallets, cryptocurrencies such as Bitcoin, and any other innovative forms of credit. This move essentially prevents Australians from placing bets using borrowed funds or anonymous digital currencies.
This regulation for online betting is in line with the restrictions imposed on physical casinos, which have already banned the use of credit cards. However, the regulations do not extend to online lotteries, which still accept credit card payments.
CEO of Responsible Wagering Australia, Kai Cantwell, is advocating for the government to broaden the ban to cover other forms of gambling that are currently exempt. Cantwell emphasized that this measure is crucial for safeguarding customers and helping them maintain control over their gambling habits.
Lawmakers had previously amended the Interactive Gambling Act 2001 to prohibit gambling providers from offering specific online services to individuals in Australia. The transition period for gambling service providers to comply with the new regulations was six months, with potential fines of up to AU$234,750 for non-compliance.
The communications regulator has been granted increased authority to enforce these restrictions, while the federal government is considering a proposal to phase out gambling advertisements over a three-year period. This proposal was among the 31 recommendations presented during a parliamentary inquiry on gambling issues in the country.
Communications Minister Michelle Rowland highlighted the government’s commitment to announcing further measures aimed at preventing gambling in the future, emphasizing that Australians should not be gambling with money they cannot afford to lose.
Australia was previously known for its thriving market of online casinos that accepted payments in digital currencies like Bitcoin. The allure of fast and anonymous transactions offered by these cryptocurrencies attracted a significant portion of Australian gamblers, with one study revealing that in 2019, 30.7% of Australian gamblers engaged in online gaming using cryptocurrencies.
In recent times, tax officials in Australia have been focusing on millions of crypto investors, requesting personal information and details from crypto exchanges. Additionally, Australia’s first spot Bitcoin ETF is set to launch on Tuesday, signaling further developments in the country’s crypto landscape.