Australia has banned online gambling with credit cards and cryptocurrencies nationwide in a major step towards protecting the gamblers. Effective June 11, 2024, this landmark rule is about safeguarding consumers from inherent risks in developing a problem gambling addiction and over-indebtedness due to high credit availability online for betting. Read on at native.ad for an exclusive overview of the credit card and crypto gambling ban in Australia, including a detailed examination of both the reason for this shift and its implications, as well as advice for how consumers and operators alike can circumvent these obstacles in their path in 2025.
How did Australia Ban Credit Card and Crypto Gambling?
Better Identification of Problem Gamblers and Financial Harm
The main purpose from the perspective of the Australian government is to minimize gambling-related harm by making it physically impossible for consumers to gamble with money they do not actually have. In the past, easy access to credit cards in the world of online gambling contributed to players piling up massive debts and for many individuals who had lost their control, total financial collapse was a consequence.
How To Align Online Gambling With Land-Based Regulations
Credit cards were banned for use at physical casinos, TAB outlets and clubs many years ago but until now online gambling providers had remained an exception. The new law will close this loophole and introduce uniform regulations for both offline gambling establishments and internet gaming offerings.
Preventing Crypto as a Workaround
The bill also spells out that cryptocurrencies such as Bitcoin can be used to fund gambling accounts via credit card. This prevents them from just buying cryptos with credit and subsequently playing on the operators’ websites.
What Does the Ban Include, And How Will It Be Enforced?
Scope of the Ban
- Input: Credit card, other non-credit offers, Apple Pay credit, cryptocurrencies) for wagering or gaming purposes.
- Exemptions: The ban does not apply to the lotteries and keno forms of gambling, this being seen as a lower risk form of gambling, verbatim from the nutshell.
- Date: The ban became law June 11, 2024 — with a six-month grace period granted to operators and players to adapt.
Enforcement and Penalties
- Compliance and penalties will be overseen by the Australian Communications and Media Authority (ACMA).
- Regulated operators that knowingly move credit card or crypto payments face fines of AUD 247,500 (~USD 155,000) per offence.
What It Means For Gambling and the Gamblers
For Players
Less Debt Risk: players must play with profits that they actually own, decreasing the possibility of sliding into debt territory.
Transition at Safer Payment Methods: When it comes to on-line betting, payers are recommended to use debit cards, bank transfers, or prepaid payment options.
More Transparency: Operators must now provide monthly statements of wins and losses which should help players stick to their budget.
For Operators
Technology News: Operators had six months to move to block banned payment passage types.
Compliance Costs : Overheads of compliance monitoring and reporting to ACMA.
Decrease in Revenue: The amount of revenue brought in by a segment of players would drop by some because they stop spending due to being deprived of credit; however, this is actually just seen as an increase for anti-problem gamblers.
Responsible Gambling In Australia
Alongside the prohibition, Australia is introducing a range of regulatory and support measures to reduce gambling harm:
BetStop : A national self-exclusion register which stops individuals from accessing online gambling sites.
Customer Verification Mandatory: In order to prevent underage or high-risk gambling, operators must verify customer identities at the outset.
Improved marketing and advertising as per evidence: No more vague “Gamble Responsibly” messages but linking them to some science-based taglines
Staff Training : Nationally consistent staff training programs for gambling operators on identification and referral of problem gamblers.
Internal Resources
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External Resources
Credit Ban Page on Australian Government ACMA Website
Read more Australian Banking Association supports ban on gambling with credit cards
FAQ
Q1: Which credit or payment facilities are banned under these Regulations as they apply to online wagering and the carriage service you provide?
A1: You cannot offer or allow for credit or any other form of deferred payment, such as interest-free loans, or use digital wallets associated with non-credit card payments to borrowers. Lotteries and keno are excluded.
Q2: When did the ban take effect?
JUNE 11, 2024: Six months after an industry adjustment period.
Q3: What made Australia put in place this restriction?
A3: Minimising problem gambling and the financial harms that come with it by ensuring no-one is able to gamble with borrowed money.
Q4: Penalties for failure by operators to comply?
A4: For a breach enforced by the Australian Communications and Media Authority, operators may be fined up to AUD 247,500.
Q5: How does the ban impact those who gamble online?
Answer: Gamblers now will need to rely on other payment types, such as debit cards, that come with more checks and controls designed to prevent them letting their gambling run out of control.
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