The Latest Laws on Crypto Use in Casinos in Australia
The popularity of cryptocurrencies in Australia is constantly going up with 1 in 4 adults owning digital currency in 2024. Aussies use them for many purposes, including gambling. While the use of crypto in online casinos is rising, the regulatory landscape remains complex. Not only that, but Australia has recently introduced new laws that affect gambling enthusiasts. So, let’s examine the latest laws on crypto use in casinos in Australia.
The 2024 Ban
The most recent change in the regulations took place on June 11th, 2024 when Australia announced a ban on credit card and cryptocurrency gambling. The government has given online casinos six months to comply with the new law, after which it’ll start issuing fines to establishments that fail to enforce the ban. This means that Australian online casinos will no longer be allowed to accept credit card and crypto payments.
However, this won’t be the end of online gambling in Australia. While the government can control online casinos based in the country, this isn’t the case with foreign iGaming providers. There are still plenty of crypto and Bitcoin casinos in Australia to play at. Also, since these websites don’t require players to input personal information when registering, tracking players isn’t an option. Plus, it’s possible to use a VPN to access one of these platforms and play poker, spin slots, and engage in other online casino games.
Therefore, the new ban on the use of credit cards and cryptocurrencies in casinos only affects Australian providers. Players can still easily find an anonymous casino to play at whenever they want. Considering the fact that many Australian gamblers prefer using crypto, we can assume they’ll continue to do so even with the ban in place.
Other regulatory changes
While the most brutal, The 2024 ban isn’t the only regulatory update Australia has made in recent years. The country has previously introduced a mandatory ID pre-verification when creating an account in an online casino. Establishments that fail to adhere to this rule now receive fines. The reason for this rule was to create more control over who can gamble online. The ID pre-verification method was introduced to ensure children and those who are self-excluded from gambling can’t register.
Self-exclusion from gambling was another big regulatory update in Australia. The country first introduced the system called BetStop in August 2023. It allowed Aussies who feel like they need help controlling their gambling habits to self-exclude themselves from creating accounts in online casinos. Over 22,000 people have signed themselves up for this system as of April 2024.
Lastly, the government has also adjusted the Gamble Responsibly advertising taglines. It dropped the previously-used phrase for a set of messages, designed to help gamblers think carefully about their actions. Australian casinos now have to adhere to this rule. However, they have responded positively and cooperated with the government in moves like this one.
Australia’s Stance on Cryptocurrency
While the government has now banned the use of cryptocurrency in gambling, Bitcoin and other digital currencies are legal in the country and are treated as property. Aussies can store, trade, spend, and receive cryptocurrency as they wish. These things have also become an accepted means of payment in both personal and business transactions. However, it’s not mandatory for businesses to accept them.
While there’ve been discussions about creating a specific area of law for cryptocurrencies, they’re still captured by the existing regulatory framework of Australia. They’re viewed as investments and as such, are subject to capital gains tax (CGT).
No specific legislation is applied to blockchain and other DLTs in Australia. Companies that use them are subject to their relevant licensing regimes. The country accepts the implementation of smart contracts and recognizes their validity. However, they have to meet all the requirements and obligations of traditional legal contracts.
Final Thoughts
The recent ban on the use of credit cards and cryptocurrencies in online gambling marks a big change in the way iGaming providers operate in Australia. With so many online casinos that are based abroad, Aussies who enjoy gambling still have plenty of options available. It’s unlikely there will be any changes regarding this even if we see some further changes in the country’s regulatory landscape.