In efforts to bolster ongoing harm minimization efforts, the federal government of Australia has proposed new legislation that will ban the use of both credit cards and digital currencies to fund iGaming play, with violators potentially facing fines of just over US$150,000 per offense.
The bill, which was proposed September 13, will unify existing legislation that already prohibits players from using credit cards in land-based casinos.
Per the language of the proposal, the government will also have the ability to limit new credit-related products in the future, in order to maintain flexibility moving forward.
This is the latest in a series of recent player protection initiatives in Australia, as the country is known for being among the most loss-heavy demographics among legal gaming markets. According to the Australian Institute of Health and Welfare, Aussie gamblers lose an average of US$16 billion per year.
Another study from the Australian Institute of Family Studies said that a whopping 38 percent of all Australians gamble in some form at least once per week.
Communications Minister Michelle Rowland told ABC Radio that Australians “should not be betting with money they don’t have.”
Once enacted, operators will have a period of six months to adjust accordingly to the new regulations.
In addition to banning credit cards and cryptocurrencies themselves, the new bill will also prohibit players from digital wallets and any related products, which hold currencies such as Bitcoin. This is so that players are unable to purchase crypto with a credit card and then use the currencies to fund play.
Amanda Rishworth, social services minister, said in a statement that because players are already prohibited from using the products at land-based casinos, it makes sense that “the same rules should apply for online gambling too.”
Other harm minimization efforts include a new, nationwide self-exclusion list, pre-commitment and loss limit requirements for gaming machines in various states, and a proposed federal ban on gambling advertising.
The proposal is already being welcomed by responsible gaming advocates throughout the country—Carol Bennett, chief executive of the Alliance for Gambling Reform, said that the bill is “great legislation in the sense it addresses the need for a ban on credit, digital wallets and digital currencies,” according to the New Daily.
That being said, one notable loophole in the new legislation that has drawn considerable backlash pertains to online lotteries.
Lauren Levin, policy and campaigns director for Financial Counseling Australia, told the New Daily that the “carve-out” for iLottery doesn’t make sense at the end of the day, “gambling is gambling.”
“Online lotteries are not a simple scratch ticket,” Levin said. “Some, like KenoGO, advertise draws every three minutes, and there are some products on the Lotto website where you can easily spend $10,000 on credit.”
Lotteries have been known to be the most popular form of gambling among Australians, used by over 60 percent of bettors.
