The Australian government has tightened regulations on online gambling by banning the use of cryptocurrencies and credit cards for online bets. This move aims to reduce financial losses among investors in the country.

According to The Canberra Times, Australians can no longer use cryptocurrencies or credit cards for online gambling, a ban announced in January and effective from today.

A six-month transition period was given to gambling companies to implement the changes and notify users of the upcoming ban. Companies that fail to comply could face fines up to AUD$ 234,750 (around $150,000).

The ban also includes credit cards linked to digital wallets, Bitcoin, other cryptocurrencies, and any new forms of credit. This aligns online gambling regulations with those for land-based gambling, though online lottery payments can still use credit cards. Kai Cantwell, Chief Executive of Responsible Wagering Australia, called for uniform regulations across all forms of gambling to prevent vulnerable individuals from turning to less-regulated gambling options.

The government introduced the crypto ban to prevent Australians from "gambling away money they do not have" and to minimize gambling-related harm.

Michelle Rowland, Australia’s communications minister, stated that the crackdown on online gambling is intended to protect thousands of vulnerable Australians.

Gambling is widespread in Australia, which had the highest gambling rate globally in 2007, with 80% of adults participating. In 2022, online gambling was the fastest-growing segment of the industry. The Australian Institute of Health and Welfare reported that problem gambling is a significant issue, with legal gambling losses reaching $25 billion annually, the highest per capita in the world.

In 2022, 17% of Australian adults engaged in online gambling. Using cryptocurrencies for gambling has been an issue in the crypto industry, exemplified by a Solana-based project developer gambling away the project's funds. While crypto itself isn't inherently linked to gambling addiction, studies in the UK indicate that some at-risk individuals view crypto investments as a form of gambling and face similar harms.