Cryptocurrency and casino laws in NSW context
In New South Wales (NSW), the use of cryptocurrencies in gambling is at the intersection of gambling regulation and fintech. There are no direct rules dedicated exclusively to cryptocurrency transactions in casinos, but their application falls under the current gambling laws, Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), as well as the requirements of the Australian Transaction Reports and Analysis Center (AUSTRAC).
1. Cryptocurrency status in Australia
Cryptocurrencies are considered digital assets and do not have the status of legal tender.
Their use in gambling is regulated in the same way as other forms of cashless payments, subject to AML/CTF requirements.
2. NSW position on cryptocurrency casinos
NSW-licensed operators can only accept cryptocurrency if the customer is fully identified (KYC).
All transactions must be converted to Australian dollars for accounting purposes.
Cryptocurrency payments must be monitored for suspicious transactions in accordance with AUSTRAC regulations.
3. Restrictions for offshore operators
Interactive Gambling Act 2001 (Cth) prohibits offshore operators from offering interactive gambling services to Australian residents, including cryptocurrency casinos.
NSW players involved in games on such platforms are outside the protection of local regulators.
4. Main risks for players
The irreversibility of cryptocurrency transactions is the lack of a chargeback mechanism.
Limited legal protection in disputes with offshore operators.
High volatility of the value of cryptocurrency, affecting the real amount of winnings.
5. Operator Requirements
Mandatory identification of the client's identity and source of funds.
Keeping records of all cryptocurrency transactions for at least 7 years.
Implementation of suspicious transaction monitoring and reporting systems.
6. Regulatory outlook
The Australian federal government is expected to introduce a separate regulation for cryptocurrency transactions in gambling in 2025.
Possible introduction of a mandatory license for operators working with digital assets and minimum standards for player protection.
Conclusion:
1. Cryptocurrency status in Australia
Cryptocurrencies are considered digital assets and do not have the status of legal tender.
Their use in gambling is regulated in the same way as other forms of cashless payments, subject to AML/CTF requirements.
2. NSW position on cryptocurrency casinos
NSW-licensed operators can only accept cryptocurrency if the customer is fully identified (KYC).
All transactions must be converted to Australian dollars for accounting purposes.
Cryptocurrency payments must be monitored for suspicious transactions in accordance with AUSTRAC regulations.
3. Restrictions for offshore operators
Interactive Gambling Act 2001 (Cth) prohibits offshore operators from offering interactive gambling services to Australian residents, including cryptocurrency casinos.
NSW players involved in games on such platforms are outside the protection of local regulators.
4. Main risks for players
The irreversibility of cryptocurrency transactions is the lack of a chargeback mechanism.
Limited legal protection in disputes with offshore operators.
High volatility of the value of cryptocurrency, affecting the real amount of winnings.
5. Operator Requirements
Mandatory identification of the client's identity and source of funds.
Keeping records of all cryptocurrency transactions for at least 7 years.
Implementation of suspicious transaction monitoring and reporting systems.
6. Regulatory outlook
The Australian federal government is expected to introduce a separate regulation for cryptocurrency transactions in gambling in 2025.
Possible introduction of a mandatory license for operators working with digital assets and minimum standards for player protection.
Conclusion:
- In NSW, the use of cryptocurrencies in gambling is subject to general gambling and financial monitoring rules. For gamblers, this means having to choose operators that meet Australian standards, and for casinos, strict requirements on AML/CTF and KYC.
