Australia Enforces Crypto and Credit Card Gambling Ban

The Australian government has officially enforced a ban on gambling sites accepting crypto and credit cards, a regulation that was announced last year. As of today, the compliance window has closed, and online gambling portals in Australia now face potential fines up to $155,000 for violations. This move is part of a broader effort to curb problem gambling, with the government granting expanded enforcement powers to a dedicated gambling watchdog.

The ban specifies that digital currencies, including Bitcoin, are prohibited for use in online betting. This aligns with existing restrictions on real-world gambling, though, notably, these do not apply to lotteries, which are considered “low risk.”

Kai Cantwell, the chief executive of Responsible Wagering Australia, emphasized the importance of the ban to The Canberra Times, stating it is a crucial step to protect customers and help individuals maintain control over their gambling habits. He highlighted the risk of inconsistent consumer protection measures pushing vulnerable groups towards less-regulated gambling options, where they face greater dangers.

This regulatory tightening follows a parliamentary inquiry into problem gambling, which yielded 31 recommendations aimed at reducing gambling-related harm. These include stricter advertising regulations for gambling entities and the creation of a self-exclusion register to help gamblers opt out voluntarily.

Further consumer protection measures are set to be implemented later this year, including a mandatory 18+ rating for video games that feature speculative elements like loot boxes. Games encouraging in-game purchases will also be recommended for mature audiences only.

Communications Minister Michelle Rowland expressed concern for vulnerable Australians, stressing the importance of preventing them from gambling with money they don’t have.

In related news, the blockchain-based betting site Polymarket recently raised $70 million through two funding rounds. This was just before users wagered $13 million on the U.S. Securities and Exchange Commission’s decision regarding eight spot Ethereum ETFs—a decision that sparked controversy over the terms and fairness of the bets involved.

Australia’s new gambling regulations represent a firm stance on consumer protection and responsible gambling, aligning digital currency usage with broader financial safeguards within the gambling sector.