Australia is taking significant steps to address gambling-related issues by banning the use of credit cards and cryptocurrencies for online betting. Starting from June 11 this year, Australian players can no longer place bets or play at online casinos using borrowed money or anonymous digital funds.
This move, aimed at curbing gaming-related problems, affects credit cards linked to digital wallets, Bitcoin, and other cryptocurrencies, as well as any form of credit. Notably, these rules apply to online casinos, whereas physical casinos in Australia have long prohibited the use of credit cards. However, online lotteries remain an exception, still accepting credit cards for transactions.
The Popularity of Crypto Casinos in Australia
Crypto casinos have enjoyed significant popularity in Australia due to their speed, security, and anonymity. The swift transaction speeds and enhanced security features of cryptocurrencies made them a preferred choice for many players. These platforms allow players to access their winnings quickly, minimizing the waiting time traditionally associated with other payment methods. Casino expert Ben Horlock says the fastest payout online casinos in Australia offer withdrawals instantly, or within 24 hours, when using crypto or other rapid payment methods. He adds that players don’t have to use credit cards or cryptocurrency if they don’t want to, since these casinos have many payment options.
Legislative Changes and Compliance
The legislative change that brought about this ban is an amendment to the Interactive Gambling Act 2001, passed by lawmakers late last year. After a six-month transition period, companies are now subject to max fines of 234,750 AUS dollars, which is 155,085 US dollars, for non-compliance. Minister of Communications Michelle Rowland has agreed with these measures, supporting the government’s stance on reducing gambling-related harm.
Impact on Online Gambling
The impact of this ban on online gambling is multifaceted. By prohibiting the use of credit cards and cryptocurrencies, the government aims to protect players from the potential financial pitfalls of gambling with borrowed money or anonymous funds. CEO of Responsible Wagering Australia, Kai Cantwell, has praised the government’s ban on credit cards, emphasizing its importance in helping players maintain control while gambling.
Australia’s Cryptocurrency Landscape
Despite these stringent regulations, Australia remains a significant player in the cryptocurrency market. The country ranks ninth in the world for crypto adoption, with 25.6% of the population holding crypto assets. As of 2024, global cryptocurrency ownership rates are estimated to be approximately 6.8%, with over 560 million users around the world. User penetration is projected to rise to 26.09% by 2025. Recently, Australia approved two new exchange-traded products for crypto asset investment, highlighting the continued interest and growth in this sector.
Responsible Gambling and Future Measures
The federal government is also focusing on reducing gambling advertisements over the next three years. This effort is part of a broader strategy to mitigate the risks associated with gambling and promote responsible gambling practices. The ban on credit cards and cryptocurrencies is seen as a critical measure in this strategy, aiming to create a safer gambling environment.
According to a study, Australians spend more money on gambling than any other country, averaging over $1,000 per gambler per year. However, only 3.1% of the population has problems with gambling.
Industry Reactions and Expert Opinions
Industry experts and stakeholders have had varied reactions to these changes. While some argue that the ban will limit player choices and the convenience associated with using digital currencies, others believe it is a necessary step to protect vulnerable individuals. Kai Cantwell’s support for the ban underscores the importance of regulatory measures in promoting responsible gambling.
Pokie Machine Shutdown
On top of the credit card ban, a major shutdown of pokie machines has significantly impacted the value of the struggling gaming company, Star Entertainment. Following a systems upgrade for cashless gaming, Star Entertainment announced to the ASX that testing revealed performance issues, leading to the shutdown of all electronic gaming machines and table games at their venues in Brisbane, Sydney, and the Gold Coast.
The decision was made to comply with regulations and uphold safer gambling practices. Star Entertainment is working with external provider Konami to resolve the issues and will update once operations normalize. Meanwhile, The Star Gold Coast, Treasury Brisbane, and The Star Sydney remain open with a range of facilities available.
The Future of Online Gambling in Australia
The future of online gambling in Australia is likely to be shaped by these regulatory changes and the ongoing efforts to promote responsible gambling. While the ban on credit cards and cryptocurrencies presents challenges for both players and operators, it also opens up opportunities for offshore platforms and innovation in payment solutions. Fast withdrawal casinos and other emerging technologies may play a crucial role in adapting to the new regulatory landscape and meeting the evolving needs of Australian players.
