Nikolas Sargeant
To prevent citizens from spending money they don't have, the Australian government has banned the use of cryptocurrencies and credit cards for online gambling.
On June 11, The Canberra Times reported that Australia has prohibited the use of digital currencies and credit cards on online gambling platforms.
Companies that do not comply with these new rules could be fined up to 234,750 Australian dollars ($155,000).
The ban covers credit cards linked to digital wallets, cryptocurrencies such as Bitcoin (BTC), and other new forms of credit.
Australia Bans Crypto Use in Gambling
The new online betting rules align with Australia's existing laws on land-based gambling. However, exceptions include online lottery payments, which can still use credit cards.
Kai Cantwell, CEO of Responsible Wagering Australia, an independent organization for Australian-licensed gambling service providers, supports the measure. He stated: “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior.”
Cantwell also urged the government to extend the ban to all forms of gambling. He warned that inconsistent protection measures might drive people to less-regulated gambling types, increasing their risk of harm.
The gambling industry was given a six-month transition period, with the full ban coming into effect on June 11. The country’s communications watchdog is now empowered to enforce these new restrictions.
Crypto and Gambling
Crypto users are known for betting 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 the ETF approvals.
In addition to the spot Bitcoin ETF decision in the United States, crypto users also bet on the outcome of spot Ether ETFs. In March, bets on the ETH ETF decision totaled $2.4 million, with the ETF receiving official approval on May 23.
Crypto users also engage in more frivolous bets, such as predicting how many times billionaire Elon Musk will tweet or guessing the temperature increase in May.
