CRYPTO CASINOS THRIVE AS AUSTRALIA TIGHTENS REGULATIONS
The global rise of cryptocurrencies has transformed key industries, from healthcare, and real estate to the online gambling sector. While crypto casinos have taken the world by storm, Australia’s gambling market faces a major shift following new regulations.
As of June 11, 2024, Australia implemented a ban on using cryptocurrencies and credit cards for online gambling using platforms registered in the country.
This law was introduced through the Interactive Gambling Amendment Bill 2023, aimed at tightening regulations on online gambling. However, the ban does not extend to offshore crypto casinos.
According to casino expert Nikita Jones, crypto casino Australia platforms can legally operate in the country despite the ban since they don’t target Australians specifically.
These gambling platforms are licensed and registered through regulatory bodies like the Malta Gaming Group.
This allows Australian gamers to gamble using Bitcoin or another crypto of their choice. Given their offshore nature, these casinos are less restricted and can offer a wider game selection and provide bigger bonuses.
Several reputable platforms offer Australians excellent choices. A portion of the 4.6 million Australian crypto holders who enjoy crypto gambling get to enjoy several benefits, including transaction security, anonymous deposits, mobile design, and speed of payouts.
Cryptocurrency adoption in Australia has been steadily growing, with 17.7% of Australians owning at least one cryptocurrency like Bitcoin or Ethereum.
This high adoption rate places Australia third globally in terms of crypto adoption, surpassing even the United States. The popularity of cryptocurrencies among Australians is driven by factors such as accessibility, potential for financial freedom, and the desire for alternative investment options.
Crypto casinos have gained significant traction globally, with the market size estimated at $250 million, with several players opting for Bitcoin as their preferred cryptocurrency.
Additionally, the crypto betting amount grew significantly, by more than 20% between 2022 and 2023, while the bet count rose by over 50%. These statistics highlight the growing global acceptance and popularity of crypto gambling.
Is banning crypto gambling a missed opportunity for Australia?
The recent ban on crypto gambling could very well be a missed opportunity for the country. While the intention behind the ban is to protect consumers, it could potentially backfire by driving Australian players to unregulated offshore platforms.
By implementing this ban, Australia risks losing out on the potential tax revenue and regulatory oversight that could have been gained from a well-regulated domestic crypto-gambling industry.
For example, Malta was one of the first countries to embrace and regulate cryptocurrency gaming. According to The Malta Gaming Group’s 2021 report, the authority generated €79.5 million in revenue, contributing to the growth of its iGaming sector.
While the ban aims to address legitimate concerns, it could impede Australia’s progress in the broader blockchain and cryptocurrency industries.
As these technologies continue to evolve and grow and integrate into various sectors, including finance and gaming, Australia risks falling behind other countries that are more open to crypto-based innovations.
A more balanced approach that combines consumer protection with embracing technological advancements could potentially yield better results for Australia’s economy and citizens.
