Australia Bans Credit Cards and Cryptocurrencies for Online Betting

Australia has banned the use of credit cards and cryptocurrencies for online betting in an effort to address gambling issues. Australians can no longer use borrowed money or anonymous digital funds to place bets.

The Australian Associated Press reported on Tuesday that the ban includes credit cards linked to digital wallets and cryptocurrencies like Bitcoin, and any future credit forms.

These new regulations align with those for physical casinos, where credit cards are also banned. However, the ban does not apply to online lotteries, which still accept credit card payments.

Previously, Australia had a flourishing market for online casinos accepting cryptocurrencies such as Bitcoin. These transactions were popular among gamblers due to their speed and anonymity. A study from 2019 indicated that 30.7% of Australian gamblers used crypto for online games.

Kai Cantwell, CEO of Responsible Wagering Australia, urged the government to extend the ban to all forms of gambling, according to the Associated Press. "This is an important measure to protect customers, making it easier for people to control their gambling behavior," Cantwell said.

Late last year, lawmakers voted to amend the Interactive Gambling Act 2001, initiating 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 given more power to enforce these restrictions. Additionally, the federal government is considering phasing out gambling advertisements over three years, following 31 recommendations from a parliamentary inquiry on problem gambling.

Minister for Communications Michelle Rowland stated that further measures to prevent gambling would be announced in the future. "Australians should not be gambling with money they do not have," she said.

Despite the ban, cryptocurrency adoption in Australia is on the rise. The country ranks 9th globally for crypto adoption, with 17% of the population owning crypto, according to a recent report. This is higher than the global average of 15%. In addition, Australia recently approved two new exchange-traded products for investing in crypto assets.