Australia Bans Credit Card Payments for Online Gambling
The Australian government has introduced a new law that bans the use of credit cards and digital currencies for online gambling. Companies that fail to comply with this ban could face fines of up to $150,470 (AUD234,750). This move is part of a broader effort to protect vulnerable individuals and reduce gambling-related problems.
Background
On September 13, 2023, the government unveiled legislation aimed at curbing the use of credit cards and other financial instruments, including digital currencies, for online bets. This measure is in line with the government’s continued dedication to protecting Australians from the dangers of online gambling. Additionally, the Communications Minister will have the power to prohibit new financial methods, ensuring the law stays updated. The creation of this law was influenced by recommendations from the Parliamentary Joint Committee on Corporations and Financial Services in November 2021.
Penalties
Companies that do not adhere to the ban could face hefty penalties of up to $150,470 (AUD234,750). This law will strengthen the Australian Communications and Media Authority’s oversight, ensuring strict enforcement of both current and new financial penalties. Breaching the new provisions could result in fines reaching AUD234,750.
Exemptions
The new restrictions will not affect lottery services. This decision aligns with the committee’s guidance, as the government believes that these services present a low gambling risk.
Conclusion
The Australian government’s decision to limit credit card payments for online gambling is designed to protect vulnerable populations and address gambling challenges. The legislation will also empower authorities to enforce financial penalties more strictly. However, the true impact of this law on Australia’s gambling landscape remains to be seen.
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