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Australia Bans Credit Card and Cryptocurrency Use in Online Betting to Curb Financial Risk
- The Australian Government is cracking down on gambling, with credit cards tied to crypto in the line of fire.
- Regulators have banned the use of credit cards utilising digital currencies (or other unique lines of credit) from use in online gambling.
- The move comes as the government also plans to phase out gambling advertisements and apply greater restrictions to the industry.
The gambling industry in Australia has taken a hit, with financial regulators implementing new rules on how these companies can accept deposits. Previously, online gambling sites could receive cash from credit cards linked to crypto accounts.
This allowed investors with poor credit scores to borrow money thanks to the crypto scene’s more relaxed regulatory oversight. No longer will this be allowed, with credit cards set to be barred from online gambling venues – matching rules that already apply to in-person services.
Related: Breaking: Australia’s First Bitcoin ETF Directly Holding BTC Goes Live on CBOE
Online Lotteries Escape Credit Ban As Australia Puts Hammer Down on Gambling
The rule change isn’t exactly a swipe at cryptocurrency from the Aussie Government. Rather, it is part of a sweeping cultural change being enforced Down Under to remove gambling (in particular, sports betting) from the cultural psyche.
Australia’s Communications Minister, Michelle Rowland, spoke to the significance of the credit card/crypto ban:
Australians should not be gambling with money they do not have… This ban builds on the significant progress to minimise gambling harm.
Michelle Rowland The changes to crypto-based credit cards are expected to come into play within the next six months, as gambling companies were given a transitory period to adapt.
Other major changes set to hit the Australian scene include:
- Games with gambling or gambling-like content will be classified as R18+
- Games with in-app purchases will be classified as M (note the impact this may have on any future GameFi releases)
- Gambling advertisements, which are rife across Australian media, are likely to be exiled over the next few years.
Interestingly, the credit card ban did not apply to online lotteries, which may become a loophole that needs to be closed.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
