Jun 11, 2024 at 03:19The Australian government has warned betting companies that non-compliance with the new regulations could lead to fines of up to 234,750 Australian dollars ($155,000).
To protect citizens from overspending, Australia has banned the use of cryptocurrencies and credit cards for online gambling.
On June 11, The Canberra Times reported that Australia implemented a prohibition on the use of digital currencies and credit cards for online gambling platforms.
According to the government, companies that do not adhere to the new rules could face penalties of up to 234,750 Australian dollars ($155,000).
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The regulations cover credit cards linked to digital wallets and cryptocurrencies like Bitcoin (BTC) and other forms of new credit.
Crypto Use in Gambling Prohibited
The new online gambling regulations are in line with Australia’s laws on land-based gambling. However, there are exceptions, such as online lottery payments, which still permit the use of credit cards.
Kai Cantwell, CEO of Responsible Wagering Australia, an independent organization representing Australian-licensed gambling service providers, stated that this measure helps people maintain control over their gambling behavior. He said:
“This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior.” Cantwell also called on the government to extend the ban to all forms of gambling to ensure consistent protection measures, arguing that inconsistency might push people towards less-regulated gambling types, increasing their risk of harm.
The gambling industry was given a six-month transition period, with the full ban taking effect on June 11. Australia’s communications watchdog is now responsible for enforcing these new restrictions.
Crypto and Gambling
Cryptocurrency users are known for gambling on various outcomes, from the latest memecoins to significant regulatory decisions like the approval of spot Bitcoin exchange-traded funds (ETFs). On January 11, users of the betting platform Polymarket wagered $12 million on the outcome of ETF approvals.
In addition to the spot Bitcoin ETF decision in the United States, crypto users also bet on the approval of spot Ether ETFs, with bets reaching $2.4 million by March. This bet was resolved when the ETF received official approval on May 23.
Crypto users also engage in lighter bets, such as predicting how many times billionaire Elon Musk will tweet or guessing the temperature increase in May.
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