The
Australian
government
has
cracked
down
on
online
gambling
by
banning
crypto
and
credit
card
use
for
online
bets.
The
measure
comes
as
an
effort
to
reduce
investors’
losses
in
the
country.
Australian
Gov’t
Bans
Use
Of
Crypto
In
Online
Gambling
On
Monday,
The
Canberra
Times
reported
that
Australians
are
prohibited
from
using
cryptocurrencies
and
credit
cards
to
engage
in
online
gambling.
The
ban,
announced
in
January,
was
set
to
be
enacted
today.
The
Australian
government
offered
a
six-month
transition
period
for
gambling
companies,
allowing
them
to
make
the
necessary
changes
and
alert
users
of
the
soon-to-be-enacted
ban.
According
to
the
report,
companies
that
do
not
comply
with
the
new
ruling
could
face
fines
of
up
to
AUD$
234,750,
worth
around
$150,000.
Moreover,
the
ban
includes
credit
cards
linked
to
digital
wallets,
Bitcoin
and
other
cryptocurrencies,
and
any
new
form
of
credit.
As
a
result,
the
new
rule
brings
online
gambling
regulation
in
line
with
the
land-based
gambling
rules.
However,
it
does
not
affect
online
lottery
payment,
which
still
allows
credit
card
use.
Kai
Cantwell,
Chief
Executive
of
Responsible
Wagering
Australia,
urged
the
Australian
government
to
equalize
regulations
among
all
gambling
forms:
If
consumer
protection
measures
aren’t
consistent
across
all
forms
of
gambling
it
will
incentivize
vulnerable
Australians
to
move
to
less-regulated
types
of
gambling,
where
they
are
more
at
risk
of
harm.
Per
the
report,
the
government’s
crypto
usage
ban
for
online
gambling
comes
as
an
effort
to
prevent
Australian
citizens
from
“gambling
away
money
they
do
not
have”
and
minimize
the
gambling
harm.
Problem
Gambling
In
Australia
Michelle
Rowland,
Australia’s
communications
minister,
explained
that
the
Australian
government
is
working
on
“benefiting
thousands
of
vulnerable
Australians”
with
their
crackdown
on
online
gambling
platforms.
Gambling
is
a
popular
pastime
activity
among
Australians.
The
country
has
a
long
story
with
the
industry,
which
rapidly
grew
in
the
mid-90s.
In
2007,
Australia
had
the
highest
gambling
rate
in
the
world,
as
80%
of
the
adult
population
engaged
in
it.
In
2022,
online
gambling
became
the
fastest-growing
sector
of
the
industry.
According
to
the
Australian
Institute
of
Health
and
Welfare
(AIHW),
problem
gambling
is
a
major
public
issue
in
the
country,
with
an
estimated
$25
billion
in
losses
on
legal
forms
of
gambling
each
year.
This
figure
represented
the
largest
per
capita
losses
in
the
world
two
years
ago.
17% of Australian adults used online casinos in 2022. Source: Australian Institute of Health and Welfare
Using
cryptocurrencies
to
gamble
is
not
a
new
issue
in
the
crypto
industry.
As
reported
by
Bitcoinist,
one
of
the
developers
of
the
Solana-based
Cypher
protocol
gambled
away
the
project’s
funds.
In
May,
one
of
the
core
developers
of
the
protocol
confessed
to
stealing
$300,000
in
different
cryptocurrencies
from
Cypher’s
wallets
to
fund
his
gambling
addiction.
Per
the
report,
the
developer
lost
the
funds
from
the
Cypher
Redemption
Package
after
gambling
them
away,
affecting
thousands
of
users
and
leaving
little
to
no
hope
of
retrieving
the
investors’
funds.
It’s
worth
noting
that,
despite
being
a
growing
issue,
problem
gambling
is
not
inherently
related
to
crypto,
and
cryptocurrencies
are
not
the
cause
of
gambling
addiction.
However,
some
studies
and
surveys
conducted
in
the
UK
have
pointed
out
that
at-risk
people
perceive
crypto
investments
as
a
form
of
gambling
and
“are
experiencing
harm
from
investing
in
cryptocurrencies
and
other
high-risk
trading
products,
experiencing
similar
difficulties
that
people
report
with
gambling
harms.”
Bitcoin (BTC) is trading at $67,092 in the weekly chart. Source: BTCUSDT on TradingView
Featured
Image
from
Unsplash.com,
Chart
from
TradingView.com
Go to Source
Author: Rubmar Garcia
