Australia’s crypto gambling ban comes into effect

A ban on using cryptocurrency to bet via the internet has come into force in Australia.

Credit cards will also no longer be able to be used to make deposits at casinos and sports betting sites due to the change in legislation, which was announced in the country last year.

The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 is an amendment to the Interactive Gambling Act 2001, with cryptocurrency among the main payment methods to be affected. As more Australians have started to use crypto options such as Bitcoin to make deposits into their online betting accounts, the government decided to act to ban this practice.

Licensed operators were given a six-month transition period to prepare for the changes, but as the law has now come into effect they will be fined if they are found to be allowing deposits via either credit cards or cryptocurrency. Firms will need to pay up to AU$234,750 if caught.

Amanda Rishworth, Australia’s minister for social services, said of the legislation change: “Our government takes seriously our responsibility to prevent and reduce harm from online wagering. Our ban on credit cards will help with this goal. You can’t use your credit card to place a bet for land-based gambling. Now the same rules apply for online gambling.”

However, those who play lotteries and keno at online betting sites will still be able to use credit cards to make their purchases as these have been made exceptions to the new rules.

The Responsible Wagering Australia body, which advocated for a credit card ban, has broadly supported the new measures but criticised the decision to exclude keno and lotteries.

Australia has been rolling out measures to combat gambling harm in recent times. BetStop, the country’s new national self-exclusion register, has been introduced. Since it was launched last August, over 22,000 Australians have used it to self-exclude from betting and promotions.

Furthermore, as well as the ban on cryptocurrency being used for online gambling deposits, Australia has brought in mandatory pre-verification. Operators are now required to verify a customer’s identity as soon as they sign up for an account, before they can place any bets.

“I am proud of the steps we have taken so far to protect vulnerable Australians,” said Rishworth in a statement released to mark the new laws. “We recognise there is still much to do – and we will keep working to create a safer environment for Australians at risk of gambling harm.”