The Australian government has introduced a ban on online betting using credit cards and cryptocurrencies. This measure is part of a broader strategy to curb gambling by limiting the financial avenues available for online betting and prohibiting the use of credit cards linked to digital wallets.
Six-Month Transition Period
To ensure a smooth transition, industry players have been granted a six-month period to comply with the new regulations. Companies that fail to adhere to the ban after this period could face fines of up to AUD 4,750. The Australian Communications and Media Authority (ACMA) has been tasked with enforcing these restrictions, ensuring compliance across the online betting sector.
Industry Response and Calls for Broader Reforms
Responsible Wagering Australia, an independent body representing the online betting industry, has welcomed the government’s decision. Chief Executive Kai Cantwell has called for the ban to be extended to currently exempt forms of gambling, such as online lotteries, which still permit credit card payments. Cantwell argues that consistent consumer protection measures across all types of gambling are essential to prevent Australians from turning to less-regulated options that might pose greater risks.
Recent Gambling Reforms
This ban is part of a series of recent gambling reforms in Australia. Notably, the introduction of a betting self-exclusion register has already seen participation from 22,000 individuals. Additionally, starting in September, computer games featuring gambling-like content will be subjected to stricter classification standards. These measures aim to provide more comprehensive protection for consumers and reduce the harms associated with gambling.
Also Read: Blockchain Australia Rebrands as DECA
Cryptocurrency Theft Incident
In a related development, the crypto gambling site Stake recently reported a significant loss of $41 million due to a crypto theft incident. According to on-chain analyst PeckShield, unauthorized withdrawals were made from hot wallets, with the stolen assets, comprising various cryptocurrencies, being sent to multiple accounts and exchanged on decentralized exchanges (DEX). The attacker currently holds the assets in Ethereum (ETH), Binance Coin (BNB), and Polygon (MATIC).
Australia’s ban on online betting with credit cards and cryptocurrencies represents a significant step towards enhancing consumer protection in the gambling sector. By imposing stricter regulations and extending protections across all forms of gambling, the government aims to mitigate the risks associated with gambling and reduce its prevalence. The recent reforms, combined with robust enforcement measures, reflect a comprehensive approach to addressing the challenges posed by online betting and gambling-related activities.
