With the increasing popularity of crypto coins, they are utilized as payment options across industries, including online casinos. Offering low-cost transactions, high-speed, anonymity while gambling, and accessibility without topographic barriers, crypto casinos are becoming the new trend. Though crypto casinos have taken the world by storm, things are not the same in Australia. As of June 11, 2024, the country has implemented a ban on using cryptocurrencies and credit cards for online gambling through platforms registered in the country. Does the ban affect the working of crypto casinos in Australia? Let’s find out.
What Are Crypto Casinos?
Crypto casinos are online casinos that use cryptocurrencies for transactions, including withdrawals and deposits. Compared to fiat currency casinos that often take a long processing time for transactions, affecting the seamless gameplay of players, by using crypto coins, crypto casinos facilitate near-instant transactions, offering an uninterrupted gaming experience.
To mitigate the risks involved in cryptocurrency transactions, crypto casinos ensure the legitimacy of coins before listing them to their crypto lists. Also, the platform often includes popular and established cryptocurrencies rather than new and less-known cryptos. The increased accessibility and privacy while gambling, attract players to crypto casinos.
With a market cap of around 250 million, crypto casinos gained global traction. The crypto betting amount increased tangible along with an increase in betting counting, highlighting the increased traction of players toward crypto casinos.
Cryptocurrencies And Its Popularity In Australia
Cryptocurrencies are widely adopted in Australia, as of October 2024, 17.7% of Australians own at least one cryptocurrency, like Ethereum and Bitcoin. The country even surpassed the United States to become the third country in the world in terms of crypto adoption rate. The enhanced accessibility, alternative financial income, and potential for financial freedom contributed to the popularity of crypto coins in Australia.
Australia’s Stance On Crypto Casinos
In order to protect its citizens from exploiting their wealth, the Australian government has announced a ban on using cryptocurrencies and credit cards for online gambling. The government also revealed that those who fail to obey the rules will be oblique to pay a fine of around 234,750 Australian dollars, which is nearly $155,000. With the rule, cryptocurrencies like Bitcoin and Ethereum, and credit cards linked to digital wallets can’t be used in online casinos.
Though the ban affected crypto and casino enthusiasts in Australia, many conservatives believe that the law highlights the country’s concern towards its citizens and enables players to control themselves from irresponsible gambling behaviors.
Will The Law Completely Ban The Functioning Of Crypto Casinos In The Country?
The law, which was in abidance to the Interactive Gambling Amendment Bill 2023, tightens regulations on online gambling, however, it only aligns with the country’s law on land-based gambling and won’t affect offshore crypto casinos that operate in Australia. These platforms are licensed through Australian regulatory bodies like Malta Gaming Group.
The offshore crypto casinos enable Australians to gamble using Bitcoin and other cryptocurrencies. Also, these platforms offer a large collection of games and bigger bonus schemes that are not available in Australian-based casinos. It offers players transaction security, anonymity, and high-speed transactions.
How Does The Ban Affect The Australian Economy?
Though the ban aimed at protecting citizens, the availability of offshore casinos nullifies their impact on players, and on the other hand the government, who created the ban is the most affected.
With the ban, Australia will lose a large sum of tax revenue from the regulated domestic crypto-gambling industry. According to reports, Malta, one of the early adopters of cryptocurrency gaming, has generated around $79.5 million in revenue in 2021.
With the increased adoption of crypto and online casino games, a large amount of revenue can be generated in the country, and the ban has put a curtain on this income door.
Bottom Line
Australia’s stance on crypto casinos neither benefits players nor the country. Though with the ban, players are prevented from using cryptocurrencies for their gambling needs, it is only for land-based casinos. The offshore casinos, which are not affected by the ban allow players to gamble, but in an unregulated manner affecting players adversely. Also, the crypto casinos that used to offer a large sum of revenue from gambling activities will no longer be available, affecting the country’s economy.
With the evolving technologies and advancements in the gaming industry, the ban hinders Australia’s development in the financial and gaming sectors. With a more balanced approach, focusing on consumer protection while promoting advancements in technologies, the government could bring more yield to the country’s economy as well as its citizens.