Australia is banning the use of credit cards and cryptocurrencies in online gambling
Australia’s House of Representatives has passed a bill banning the use of credit cards and cryptocurrencies for online betting and gambling. It had previously been banned for land-based betting and gambling. It represents a comprehensive approach to tackling what the government considers to be a widespread gambling addiction problem in the country.
The laws are part of a wider drive to reform gambling in Australia and are strongly opposed by gambling lobbyists. According to the Australian Associated Press, despite efforts to overturn the ban, the House of Representatives, with the support of the two major political parties, has not made concessions.
Under the proposed legislation, any gambling operator that breaches the credit card ban could face hefty fines, which could exceed AU$234,000 (US$149,058) depending on the severity of the breach. This strict approach is intended to be a strong deterrent to operators trying to circumvent the new regulations.
The ban is not without precedent, as other jurisdictions have implemented similar measures to curb the negative effects of online gambling. The move is in line with the Government’s ongoing efforts to promote responsible gambling and protect vulnerable people from the potential harm caused by excessive gambling.
Say no to plastic
The bill now awaits discussion in the Senate, where it can undergo further debate and revisions. If the bill successfully passes the chamber, gaming operators and financial institutions will need to work together to comply with the new regulations. The proposed six-month grace period provides stakeholders with a transition window to adjust their practices and ensure compliance.
This legislative milestone underlines Australia’s commitment to addressing the challenges posed by online gambling and marks significant progress in the wider discussion of responsible gambling behaviour.
However, if history repeats itself, some operators may try to cleverly circumvent the ban. There have been cases of gambling operators creating fake e-commerce websites to gain approval to process credit card purchases. They then masked the gambling purchases through the website.
The offshore gaming market is ushering in changes
Australia’s online gambling industry has long struggled with a lack of comprehensive regulation, creating a void that the offshore market could easily fill. The lack of a regulated online gambling framework in the country has led many players to seek alternatives from offshore operators, who have a variety of options to choose from.
The situation raises concerns about consumer protection, responsible gambling measures and the potential for illegal or unethical activities to occur in offshore markets. The lack of a regulated online gambling environment also means Australians may not benefit from the same degree of oversight and player protection provided by regulated markets.
The Australian Responsible Gambling Group reported a few months ago that offshore gambling could cost the government about A$3 billion ($1.91 billion) in lost tax revenue. The organization representing gambling operators in the country added that offshore markets control about 15% of the entire online gaming market.
We have worked hard to address these issues and the Australian Government is currently conducting discussions and proposals for reforms to create a comprehensive regulatory framework for online gambling. Such regulation protects consumers and generates revenue for the government.
Until then, however, the offshore market will continue to survive. It would also welcome changes that force players to seek out less restrictive online options.
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Source: www.casino.org
