Australia Enforces Ban on Crypto and Credit Cards for Online Betting

[ABCbits]

Australia Enforces Ban on Crypto and Credit Cards for Online Betting

Australia has implemented a ban on using credit cards and crypto for online betting, in an effort to curb gambling problems. This means Australians will no longer be able to wager using borrowed money or anonymous digital funds.

The Australian Associated Press reported Tuesday that the ban on online gambling payments extends to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and any future forms of credit... Read more here.


The full news state it was part of 31 suggestions regarding gambling which can be seen here. Although i have feeling government also use this chance to limit cryptocurrency adaption. Your opinion is greatly appreciated.

[Stompix]

The Australian Associated Press reported Tuesday that the ban on online gambling payments extends to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and any future forms of credit... Read more here.

Is it crypto payments or payments done with a credit card linked to a digital wallet?
https://www.dss.gov.au/communities-and-vulnerable-people-programs-services-gambling/gambling-reforms

Ban on the use of credit cards for online wagering
The ban will apply to Australian licensed wagering services. The ban will extend to credit cards and credit payments made via digital wallets.

Anyhow, Australia had a problem, and everyone knew bans would come since everyone agreed to the measures, there was like no real opposition on the votes, probably the next step will be a complete ban! In some countries, the whole betting till you're broke and then use welfare money to bet has gone out of control.

[yhiaali3]

It is true that this is a personal freedom, but I am in favor of banning the use of credit cards and cryptocurrencies to bet online. We have seen how big problems gambling causes. Many people have lost their money and become bankrupt because of gambling.

In addition to gambling itself being a problem, we have an additional problem after the spread of gambling through cryptocurrencies because many betting sites, casinos, etc. are scams and deceive gamblers and steal their money.

Look at the accusations section on the BTT forum, for example, and you will see the huge amount of problems this site has caused

[Zed0X]

It's just like cutting one finger but the remaining nine still works properly. Serious and casual gamblers will still find a workaround to bet but I am still in support of the credit card ban though. I think cutting off the CC payment option should be implemented worldwide. Bet with the money you have.

[TomPluz]

The full news state it was part of 31 suggestions regarding gambling which can be seen. Although I have feeling government also use this chance to limit cryptocurrency adaption. Your opinion is greatly appreciated.

Surely this ban on the use of cryptocurrency in gambling can partly limit the adoption of of it to some extent but then again if you have some cryptocurrency just convert them to fiat cash and viola you can then again start gambling to your heart's content. I am sure that gambling platforms can provide this conversion service to their customers first before anyone can indulge in the habit. I am not for promoting gambling though I understand that this is one industry that really pioneered the adoption of cryptocurrency and we have to give it some credit for that. On the other side of the story, I salute this move on the part of the government to try to limit people's involvement in gambling though I doubt if this can really successfully curb gamblers from doing what they want. My government is allowing online gambling and worse is permitting its advertising in mainstream TV something which I do not really agree. Gambling is a big business and usually the government is always enticed to take some share of the lucrative pie so it is just turning a blind eye to the many societal ills that can come out of it...it is actually rare for the government to do something to limit the gambling reach and growth.

[ABCbits]

The Australian Associated Press reported Tuesday that the ban on online gambling payments extends to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and any future forms of credit... Read more here.

Is it crypto payments or payments done with a credit card linked to a digital wallet?
https://www.dss.gov.au/communities-and-vulnerable-people-programs-services-gambling/gambling-reforms

Ban on the use of credit cards for online wagering
The ban will apply to Australian licensed wagering services. The ban will extend to credit cards and credit payments made via digital wallets.

Link you mentioned seems to be outdated though, since on bottom of the page says "Last updated: 15 December 2023 - 4:17pm".

The full news state it was part of 31 suggestions regarding gambling which can be seen. Although I have feeling government also use this chance to limit cryptocurrency adaption. Your opinion is greatly appreciated.

Surely this ban on the use of cryptocurrency in gambling can partly limit the adoption of of it to some extent but then again if you have some cryptocurrency just convert them to fiat cash and viola you can then again start gambling to your heart's content.

You're right, but it take some time and cost (such as trading and withdraw fee).

I am sure that gambling platforms can provide this conversion service to their customers first before anyone can indulge in the habit.

I doubt it, unless the gambling platform also own license or permission to perform currency exchange.

[Lucius]

On the one hand, I'm in favor of people doing what they want with their money as long as it doesn't harm them personally, and especially others around them - but at some point when things get out of control, drastic measures are obviously needed. Gambling and sports betting should be fun, but it seems that more and more people are turning it into an addiction that is becoming a growing problem for society.

An addicted person becomes a problem because he destroys his family, the people around him, and in the end, in one way or another, he becomes a burden to the state - whether he ends up in treatment or in prison, because such people often start engaging in crime in order to get money.

I think that all countries, in cooperation with all companies that provide such services, must find a way not to create addicts - otherwise, some countries will be forced to completely ban online gambling.

[bitbit97]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00. And somebody believe that this ban would really help? Arent gamblers and addicted gamblers one of the creative persons that happen to find money for gambling no matter what? Imo with this move, Australia has stimulated grey economy. Now gambler would still use credit cards, but this time to buy goods, then re-sell them for fiat and place bets. Very smart Australia.

[dkbit98]

Oh yes, government of Australia has proven to ''care'' so much about people in last few years... now they are doing it again.
I don't remember people asked for government to act as a babysitter for everything they are doing online and offline.
I am not supporting gambling at all, but they are going to try and extend this ban to everything else soon if people don't obey.
They are mass closing banks and ATM's there and preparing for CBDC, so good luck trying to do anything with that.

[electronicash]

Oh yes, government of Australia has proven to ''care'' so much about people in last few years... now they are doing it again.
I don't remember people asked for government to act as a babysitter for everything they are doing online and offline.
I am not supporting gambling at all, but they are going to try and extend this ban to everything else soon if people don't obey.
They are mass closing banks and ATM's there and preparing for CBDC, so good luck trying to do anything with that.

i remember they were trying to ban gambling ads online. this is probably just another attempt of the government to completely make their citizen stop gambling.
it isn't so bad for a government to prevent their people to gamble before it becomes a nationwide problem that even the teens are downloading sports betting app of google play. 

Despite the ban, Australia is a major player in the crypto market, with a growing number of people owning and using crypto. In fact, the country ranks 9th in the world for crypto adoption, with 17% of the population owning crypto according to a recent report. This is even higher than the global average of 15%.

the adoption of crypto in the country is still growing. the only problem they want to be gone is gambling.

[ABCbits]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00.

That's interesting perspective, although news and other link mentioned doesn't even state bank response towards the ban. Maybe gambler who use credit card usually have hard time paying what they owe, so bank doesn't bother make statement about this bank.

And somebody believe that this ban would really help? Arent gamblers and addicted gamblers one of the creative persons that happen to find money for gambling no matter what? Imo with this move, Australia has stimulated grey economy. Now gambler would still use credit cards, but this time to buy goods, then re-sell them for fiat and place bets. Very smart Australia.

I agree, although it might able to prevent someone else becoming an addict. Although i wonder how effective is it.

[bitbit97]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00.

That's interesting perspective, although news and other link mentioned doesn't even state bank response towards the ban. Maybe gambler who use credit card usually have hard time paying what they owe, so bank doesn't bother make statement about this bank.

I cant even realize how this is going to work. How can casinos know when the user is using a credit card, issues by Australian bank to deposit, and not a deposit card. Or how can Australian casinos tell who is a local and who is a foreigner. Also how will it work, if an Australian gambler uses US credit card. Does it means, that casinos will receive specific list of credit card numbers to ban? Or they will simply ban card deposits. Does not make sense how all this is going to work.

[NotATether]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00. And somebody believe that this ban would really help? Arent gamblers and addicted gamblers one of the creative persons that happen to find money for gambling no matter what? Imo with this move, Australia has stimulated grey economy. Now gambler would still use credit cards, but this time to buy goods, then re-sell them for fiat and place bets. Very smart Australia.

Measures like this never seem to work.

When I read the title I thought it was about Australia just banning crypto (again) but it turns out that it is not only banning crypto but also credit cards for gambling.

However, I wouldn't be surprised to hear that banks were basically forced to go along with this, because it's the Australian government calling the shots here.

[Stompix]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00.

And yet bars agreed to close earlier in some countries, pubs and restaurants agreed on smoking bans, tv stations agreed on bans on betting and tobacco, I don't understand what's the surprise here, there are a lot of banks that don't like even deposits on betting website from debit cards, it's nothing unheard of!

Plus if you think it's such an attractive industry for them would you loan money to a gambling addict?
I'm betting (pun!) they have a ton of credit defaults from gamblers, enough to offset the interests.

And somebody believe that this ban would really help? Arent gamblers and addicted gamblers one of the creative persons that happen to find money for gambling no matter what? Imo with this move, Australia has stimulated grey economy. Now gambler would still use credit cards, but this time to buy goods, then re-sell them for fiat and place bets. Very smart Australia.

Common, you really think it's that easy?
If we go by this logic we shouldn't prohibit anything because people find a loophole.

One major problem that is mitigated is that the user doesn't have access to a credit line immediately, to gamble on impulse because he has lost, he will need to purchase something, wait for the delivery, sell the thing, load a debit card...it will be a lot of time in which he can calm down and not rush to empty his whole credit line on the next bet!

I cant even realize how this is going to work. How can casinos know when the user is using a credit card, issues by Australian bank to deposit, and not a deposit card. Or how can Australian casinos tell who is a local and who is a foreigner.

The cc number tells the processing party everything about you, what type of card you have, who issued it, who is the owner, and so on, it's so simple for them to filter this it will be the last problem.
As for the card in another country id doesn't matter, If you're KYCed as an Aussie then you will have no way of using a cc.

[bitbit97]

I find it hard to believe banks agreed to that. Credit cards are their bread. I dont believe that banks on freewill agreed to receive less profit from clients. It is like having a night bar but refuse to sell alcohol after 21:00.

And yet bars agreed to close earlier in some countries, pubs and restaurants agreed on smoking bans, tv stations agreed on bans on betting and tobacco, I don't understand what's the surprise here, there are a lot of banks that don't like even deposits on betting website from debit cards, it's nothing unheard of!

What you have mentioned are limitations only, but what Australia wants to do is to ban completely. It will be fair to say then that "bars agreed to work only on even day", "pubs and restaurants agreed not to server smokers at all", "tv stations agreed to decrease to decrease ads time twice".

Ok, banks dont want to get any close to gambling. Dont you think their credit sector would not feel any change than?

And somebody believe that this ban would really help? Arent gamblers and addicted gamblers one of the creative persons that happen to find money for gambling no matter what? Imo with this move, Australia has stimulated grey economy. Now gambler would still use credit cards, but this time to buy goods, then re-sell them for fiat and place bets. Very smart Australia.

Common, you really think it's that easy?
If we go by this logic we shouldn't prohibit anything because people find a loophole.

One major problem that is mitigated is that the user doesn't have access to a credit line immediately, to gamble on impulse because he has lost, he will need to purchase something, wait for the delivery, sell the thing, load a debit card...it will be a lot of time in which he can calm down and not rush to empty his whole credit line on the next bet!

It is not easy. I have given a quick example. Anyway, what stops me from shopping offline and immediately selling everything to pawnshop? ATM with deposit options is around every corner.

I cant even realize how this is going to work. How can casinos know when the user is using a credit card, issues by Australian bank to deposit, and not a deposit card. Or how can Australian casinos tell who is a local and who is a foreigner.

The cc number tells the processing party everything about you, what type of card you have, who issued it, who is the owner, and so on, it's so simple for them to filter this it will be the last problem.
As for the card in another country id doesn't matter, If you're KYCed as an Aussie then you will have no way of using a cc.

You won. I am not that experienced with bank cards. Thought I could use Barclays bank card in Australia for gambling, and would have no issues.