Under the new rules, firms that do not impose the credit card ban will be fined more than $234,000
Gamblers will soon be unable to place wagers online using their credit cards in an effort by the government to lower problem betting.
The Australian government introduced legislation to parliament on Wednesday banning credit from being used to bet online.
Under the new rules, firms that do not impose the credit card ban will be fined more than $234,000.
The communications watchdog will also be given new powers to implement the changes.
Communications Minister Michelle Rowland said the reforms would mean problem gamblers would not get further entrenched in debt.
A ban on the use of credit cards and credit-related products for online wagering will have the immediate and effective impact of preventing people from gambling with money they do not have, Rowland told parliament.
Online gambling is rising in Australia because of easier and quicker access through mobile devices and a proliferation of online gambling applications, Rowland said.
The laws will also prohibit credit cards linked to digital wallets like ApplePay, as well as prohibit digital currency like bitcoin for payment.
This reduces the risk that individuals could buy crypto currency using a credit card and then use these funds to pay it online, she added.
New credit payments that may come up as a loophole to the gambling laws would be able to be prohibited under measures in the laws.
Gamblers and betting firms will have a six-month transition period to modify their gambling habits from when the new laws pass parliament, should it be successful.
Social Services Minister Amanda Rishworth said a prohibition on credit cards for betting online was the next step to lower rates of problem gambling.
You cannot use your credit card to place a bet for land-based gambling and the same rules should apply for online gambling as well, Rishworth added.
She added: We know reducing the harm caused by online gambling is not a set and forget exercise and I look forward to working with my state and territory counterparts on what comes next to continue this positive change.