Bitcoin
Australia Cuts Crypto, Credit Cards for Online Gambling
In a significant move to reduce the financial risks associated with online betting, the Australian government has officially banned the use of cryptocurrencies and credit cards on digital gaming platforms.
This measure, effective from June 11, was reported by The Canberra Times and extends to sources of credit linked to digital wallets, such as Bitcoin and other emerging forms of credit.
New regulations align with land-based casinos and exclude online lotteries
The newly imposed regulations are designed to align with existing rules for land-based casinos, while maintaining exceptions for certain transactions, such as online lottery payments. The decision comes amid concerns about easy access to excessive credit and the potential for substantial financial losses among gamblers.
The government has established a strict penalty for non-compliance, with fines reaching A$234,750 (approximately US$155,000). This policy implementation follows a six-month transition period granted to the gaming industry to adjust to the new laws, now strictly enforced by the country’s communications watchdog.
Australia cracks down on online gambling with crypto
Kai Cantwell, CEO of Responsible Wagering Australia, an independent body representing licensed gambling service providers in Australia, supports the government initiative. Cantwell emphasized the importance of such measures to help individuals maintain control over their gambling habits.
He also called for these restrictions to be expanded to include all forms of gambling, to prevent gamblers from seeking out less regulated and potentially more harmful betting environments.
The intersection between cryptocurrency and gambling has been notable, not only in conventional betting arenas but also in speculative activity in prediction markets.
For example, on January 11, Polymarket users placed bets totaling $12 million on whether the U.S. Securities and Exchange Commission (SEC) would approve a spot Bitcoin exchange-traded fund (ETF) by mid-January.
These bets, made on the Polygon-based decentralized prediction market, highlighted the speculative nature of crypto users betting on regulatory outcomes and other high-stakes decisions.
Cryptography and Gambling: A Speculative Intersection
The crypto betting frenzy reached its peak just as the SEC was preparing to announce its decision on ETFs. On January 10, trading volumes on Polymarket surpassed those on OpenSea, a leading non-fungible token marketplace, with $5.7 million compared to $3.9 million.
Bets were settled in favor of those speculating a “YES” as the SEC approved the trading and listing of 11 spot Bitcoin ETFs the following day.
Despite the official verdict, some participants challenged the result based on semantic differences in the SEC’s terminology, arguing that the bet should continue since the SEC referred to “exchange-traded products” rather than specifically naming them ETFs. .
In addition to Bitcoin, crypto users have also hedged bets on the potential approval of spot Ether ETFs in the United States. With more than $2.4 million at stake, around 81% of bets were bearish on the approval of a spot Ether ETF before the May deadline.
The bets, which also took place on Polymarket, were settled when the ETF was officially sanctioned, on May 23rd.
These gaming activities reflect the broader trend of cryptocurrency enthusiasts engaging in both consequential financial predictions and lighter, more whimsical forecasts, such as guessing the frequency of Elon Musk’s social media posts or the extent of temperature rises.
This pattern of behavior highlights the volatile nature of the use of cryptocurrencies in gambling – from serious financial bets to trivial bets – and the need for strict regulations like those Australia has implemented.
The government’s proactive stance aims to not only protect consumers, but also prevent the potential financial disaster spurred by unchecked online gambling.