Australia Bans Digital Currencies and Credit Cards for Online Betting

Australia Bans Digital Currencies and Credit Cards for Online Betting

To protect its citizens from spending money they don’t have, the Australian government has implemented a ban on using cryptocurrency and credit cards for online gambling.

On June 11, The Canberra Times reported that Australia began prohibiting the use of digital currencies and credit cards on online gambling platforms.

The government has announced that companies failing to adhere to the new regulations could face fines of up to 234,750 Australian dollars (approximately $155,000).

These rules apply to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and other forms of digital credit.

Australia Enforces Crypto Ban in Gambling

The new regulations for online betting are in line with Australia’s laws on land-based gambling. However, exceptions exist, 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, supports the measure, stating:

“This is a crucial step in protecting customers, making it easier for individuals to maintain control over their gambling behavior.”

Cantwell also urged the government to extend the ban to include exempt gambling forms. He believes that inconsistent protection measures across various forms of gambling could push people towards less-regulated types, increasing their risk of harm.

The gambling industry was granted a six-month transition period before the full ban took effect on June 11. The country’s communications watchdog has been authorized to enforce these new restrictions.

Crypto and Gambling

Crypto enthusiasts are known for betting on a wide range of outcomes, from the latest memecoins to significant regulatory decisions, such as 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 have also bet on the outcome of spot Ether ETFs. In March, bets on the ETH ETF decision amounted to $2.4 million. This bet concluded with the ETF’s official approval on May 23.

While crypto users often make serious investment decisions, they also engage in more frivolous bets, such as predicting how many times billionaire Elon Musk will tweet or guessing the temperature rise in May.