A crypto online gambling ban in Australia aims to prevent overseas gambling and future-proof the industry. The credit ban is also confirmed! (Image by Michal Jarmoluk from Pixabay)
A new threat to crypto gambling for overseas online crypto casinos serving Australian citizens is in the air. At the same time, as a double whammy, credit cards are also being cut out as a payment option for online sports betting sites legally operating under state-by-state licensing authorities in the country.
The Commonwealth government informed all state licensing authorities that the credit card ban will come into action for all online sports betting sites. State-by-state authorities down under must add this rule to their licensing framework, which partly derives from Australia’s Interactive Gambling Bill.
This does not affect online casinos because Australia’s licensing authorities cannot offer licensing for casino games on the internet. Therefore, online casino gambling companies do not exist in Australia. Instead, Aussie players use overseas platforms—casinos such as those on the online casino Australia real money webpage here on Casinoplusbonus. However, these are deemed illegal by the government and part of what authorities call the Australian internet casino black market.
With an outright ban on Aussie banks processing transactions to fund overseas online casinos for their customers, most citizens turn to crypto. As digital currencies come with a certain degree of anonymity, it is the easiest way to fund online casino gambling.
FYI: Credit cards have already been banned in land-based venues, which I can confirm via the Australian Banking Association on the August 2021 – Parliamentary Joint Committee statement.
The Credit Ban Is Still Not Yet in Force
Although state government licensing authorities expect the ban to come into force soon, it is still not officially a rule. Therefore, online sportsbooks are still accepting credit card deposits until further notice. Once the rule does come into place, the ban will not be an immediate one. Online sports books will apparently have a six-month grace period.
Credit card bans for all forms of gambling have long been in place in the United Kingdom under the UKGC framework. Also, Ireland’s new regulatory authority plans to ban the use of credit cards for online gambling when the Irish framework officially launches. However, other authorities, such as the Alcohol and Gaming Authority of Ontario (AGCO), have not taken the same stance.
My opinion – I agree with credit card bans for gambling!
On the one hand, the Aussie government does make some poor decision making when it comes to its gambling laws, however, in my opinion, I am all for credit card bans. Banning the enhances responsible gambling.
Apologies if I offended anyone. However, people should only gamble with money they already have. Rising global debt has a negative effect on economies and has a hand in the global rise in inflation governments are battling.
Although some people use their credit cards for convenience and pay off their debt every month, a far higher percentage don’t.
Australia’s Crypto Ban to Rock the Overseas Gambling Industry
Another report confirming Australia’s plans to ban the use of credit cards was the mention of banning cryptocurrencies for gambling. Now, as we do not cover online sports books that operate under Australia’s Interactive Gambling Bill, which partially governs how state-by-state gambling licensing authorities pass down these laws to operators, I had no idea crypto was a thing in Australia.
As a result, I did some research using my VPN to zoom into Australia. I checked all the top sports betting sites via my VPN. No big guns like TAB, Ladbrokes, Bet365, BlueBet, PointsBet, or Sportsbet accept crypto as a deposit option.
Why the mention of cryptocurrency bans for gambling in Australia?
The report mentioning the crypto ban for gambling in question is by the Consumer Federation of Australia titled – FCA on the Credit and Crypto Gambling Ban. There are two reasons provided for the crypto ban.
- Overseas Gambling Prevention: Specifically, Ms Levin, the FCA’s Director of Policy and Campaigns, mentioned overseas gambling and crypto. Her exact words in the report are, “Digital currencies, including cryptocurrency, have made disturbingly large inroads into gambling overseas”.
- Future-Proof the Australian Gambling Industry: Ms Levin also said that the ban would close the door to any online sports books legally operating in the country with plans/desires to offer crypto as a deposit or withdrawal method to Aussie citizens. Her reasoning behind this is because of the fluctuating prices of cryptos. Her exact words are: “Digital currencies can have wild fluctuations in value, so not only do people speculate on their bets”.
I assume that in the same fashion, banks cannot process any form of financial transaction with overseas casinos for their customers; the same rules will bind crypto exchanges and wallets operating in Australia.
You can find out more about how Australia is combating overseas gambling in my earlier news report, Australia Combating Illegal Offshore Gambling.
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