The Australian government has taken a bold step to curb online gambling by banning the use of cryptocurrencies and credit cards for online bets. This move aims to reduce investors' losses and prevent Australians from "gambling away money they do not have."

Australian Government's Efforts to Combat Problem Gambling

The government has given gambling companies a six-month transition period to make necessary changes and alert users of the upcoming ban. Failure to comply could result in fines of up to AUD$ 234,750, worth around $150,000. The ban includes credit cards linked to digital wallets, Bitcoin, and other cryptocurrencies, as well as any new form of credit.

Impact on Online Lottery Payments

However, the ban does not affect online lottery payments, which still allow credit card use. This move brings online gambling regulation in line with land-based gambling rules.

Concerns Over Inconsistent Regulations

Kai Cantwell, Chief Executive of Responsible Wagering Australia, urged the government to equalize regulations among all gambling forms. He emphasized that inconsistent regulations could incentivize vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm.

Problem Gambling in Australia

Michelle Rowland, Australia's communications minister, explained that the government is working to benefit thousands of vulnerable Australians with their crackdown on online gambling platforms. Gambling is a popular pastime activity among Australians, with the country having a long history with the industry. Online gambling has become the fastest-growing sector of the industry, with problem gambling being a major public issue.

Crypto's Role in Online Gambling

Using cryptocurrencies to gamble is not a new issue in the crypto industry. One developer of the Solana-based Cypher protocol gambled away the project's funds, losing $300,000 in different cryptocurrencies. This incident highlights the risks associated with crypto gambling and the need for stricter regulations.

Conclusion

The Australian government's ban on crypto and credit card use for online gambling is a significant step towards reducing investors' losses and preventing problem gambling. While the ban does not affect online lottery payments, it brings online gambling regulation in line with land-based gambling rules. The government's efforts to combat problem gambling are crucial in protecting vulnerable Australians from the risks associated with online gambling.