Bitrabo Editorial
The Australian government has implemented a ban on the use of cryptocurrencies and credit cards for online gambling in an attempt to safeguard investors from financial losses.
Australian Gov’t Enforces Restrictions on Crypto in Online Gambling
Recently, The Canberra Times reported that Australians are now prohibited from utilizing cryptocurrencies and credit cards for online gambling activities. The ban, announced earlier this year, came into effect today.
There was a six-month transition period granted to gambling establishments to adjust to the new regulations and inform users about the upcoming ban. Companies that fail to comply with the ban could face fines of up to AUD$234,750.
The ban encompasses credit cards associated with digital wallets, various cryptocurrencies like Bitcoin, and any form of new credit, aligning online gambling regulations with traditional land-based gambling regulations.
Nevertheless, the ban does not extend to online lottery payments, which still permit the use of credit cards. Kai Cantwell, Chief Executive of Responsible Wagering Australia, emphasized the need for consistent regulations across all forms of gambling to protect vulnerable individuals.
The government’s decision to ban the use of cryptocurrencies in online gambling aims to prevent Australian citizens from engaging in reckless spending and to reduce the impact of gambling addiction.
Issue of Problem Gambling in Australia
Australian Communications Minister Michelle Rowland highlighted that the government’s crackdown on online gambling platforms aims to assist numerous vulnerable Australians.
With gambling being a widespread recreational activity in Australia, the country has a long history in the industry, with a significant spike in growth in the mid-90s. By 2007, Australia had the highest gambling participation rate globally, with 80% of adults involved in gambling activities.
The online gambling sector saw rapid expansion in 2022, becoming the fastest-growing segment of the industry. The Australian Institute of Health and Welfare (AIHW) reported that problem gambling is a substantial public concern, resulting in an estimated $25 billion in annual losses from legal gambling activities.
Although cryptocurrency use in gambling has raised concerns within the industry, it is essential to note that problem gambling is not solely linked to crypto and that cryptocurrencies are not the root cause of gambling addiction.
Research conducted in the UK has indicated that some individuals view cryptocurrency investments as a form of gambling and may encounter comparable challenges to those experienced with traditional gambling harms.