We recently reported on the decision by the Australian government to ban the use of credit cards and other forms of credit-accruing finance options for the purposes of online gambling. This amendment to the Gambling Act was said to align with the rules and regulations already in place for land-based gambling.

Another amendment attached to this law change was the ban on the use of cryptocurrencies to fund casino accounts.

Bitcoin Slipped Under the Radar

While there is very little data to support the claim that banning credit cards has a demonstrable impact on problem gambling rates and even indebtedness among the gambling community, the idea of limiting credit-based debt can be seen as a noble endeavour.

However, it is disingenuous to lump credit-based debt facilities and the use of Bitcoin and other digital currencies under the same Interactive Gambling Amendment (Credit and Other Measures) Bill 2023.

In an underhanded bit of legal chicanery, last seen in 2006 when the US Department of Justice slipped an online gambling ban into a safer ports bill, Australia’s Bill 2023 simply says:

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“… develop and implement legislation to ban online gambling service providers of wagering, gaming and other gambling services (but not lotteries) from accepting payment by credit cards, including via digital wallets.”

What makes it more confusing is that it is legal to own, trade and sell cryptocurrencies in Australia, with the government having licensed several well-known exchanges to do business in the country, including Coinbase, Binance, and Kraken.

Yet this non-credit-bearing legal asset has been tied to a gambling amendment focused explicitly on protecting players from over-indebtedness and its associated harms.

 Responsible Gambling Smokescreen

To defend the decision to restrict Bitcoin casino gambling, Amanda Rishworth, Australia’s Minister for Social Services, said:

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“I am proud of the steps we have taken so far to protect vulnerable Australians but recognise there is still much to do – and we will keep working to create a safer environment for Australians at risk of gambling harm.”

The problem with this position that credit and crypto gambling are inherently bad for Australians falls flat when you read the amendment in full. The government has banned both mechanisms from being used for games of chance. Still, it has carved out a caveat allowing credit-based gambling when participating in the national lottery or keno-style games (an added layer of defence of lotteries).

Astoundingly, the Australian government has the mandate to offer that style of gambling, which appears to be free from the over-indebtedness harms that plague crash games, online pokies, online poker, live dealer blackjack, and sports betting.

The forked-tongue nature of this caveat was not lost on the online gambling trade body Responsible Wagering Australia (RWA), with EO Kai Cantwell going to the media to say:

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“RWA and its members support the extension of this measure to all forms of gambling that have been exempted from the ban, such as lotteries and keno.”

Further adding:

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“If consumer protection measures aren’t consistent across all forms of gambling, it will incentivise vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm.”

While government-funded gambling projects continue to reap the rewards of debt-based deposits, the gambling authority has imposed a base fine of AU$234,750 (€145,000) for any online or land-based operators found to be accepting deposits from wallets using cryptocurrencies or credit cards.