Australia bans credit cards & cryptocurrency in Online Gaming to bolster consumer protection

Australia bans credit cards & cryptocurrency in Online Gaming to bolster consumer protection

In a decisive move to tackle problem gambling and bolster consumer protection, Australia has announced a series of sweeping reforms targeting the online gambling industry. The comprehensive reforms include prohibition of credit cards and digital currency (cryptocurrency) for betting, marking a crucial step in the direction of the nation’s strategy to govern online wagering activities more effectively. The government as well as industry experts are of the view that the new reforms will be very helpful in mitigating the risks associated with irresponsible gambling. Additionally, they are expecting greater financial responsibility among bettors.

Taking effect immediately, the new regulations state that no Australian can now make use of credit cards and cryptocurrencies for online betting. It aligns digital betting regulations with already existing requirements that govern land-based gambling. With the closure of this regulatory loophole, regulators aim to alleviate the risks associated with irresponsible gambling behavior, ensuring better financial farsightedness and accountability among bettors.

The policymakers’ decision of putting a ban on use of credit card and cryptocurrencies for online betting has been supported by industry stakeholders, including Responsible Wagering Australia CEO Kai Cantwell, who described the decision as an important step towards protecting consumers. Emphasizing the need for reliable consumer protection measures across various gambling platforms, Cantwell urged policymakers to extend the ban to cover exempt forms of betting to ensure comprehensive regulatory oversight.

Communications Minister Michelle Rowland reiterated that the government remained committed to take all preventative measures to curb problem gambling. Reaffirming the government’s commitment, Rowland also stressed that no stone would be left unturned to promote responsible betting practices to safeguard consumers’ interests.

To make sure that all online gambling operators comply with the new regulations, companies have been given a transition period of six months so that they can adapt their operations as required. After this transition period, the government will start imposing stringent penalties, including hefty fines of up to $235,000, on companies that will fail to comply with the new regulations. This approach signals the government’s determination to maintain regulatory standards and safeguard consumer interests.

The announcement of the new regulations signals a transformative shift in the online gambling landscape, emphasizing the nation’s commitment and dedication to tackle problem gambling and bolster consumer protection. Amidst the increasing issues of problem gambling and irresponsible gambling activities, Australia’s proactive stance set a precedence for other nations to follow.

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