The 22-year-old was spotted by police at Melbourne Park on Tuesday and charged with courtsiding, a form of court-side betting that involves placing bets on point outcomes throughout a match.
He was charged with one count of engaging in conduct that would corrupt a betting outcome and bailed to appear at Melbourne Magistrates' Court on Thursday.
Victoria Police Deputy Commissioner Graham Ashton said in a statement on vicpolicenews.com.au: "Victoria now has specific legislation that covers offences related to cheating at gambling.
"These offences carry hefty penalties of up to 10 years in prison.
"We will be monitoring matches for the remainder of the tournament, so if you're thinking of engaging in this kind of behaviour, think again."
Ann West, the Australian Open's business compliance and risk manager, said: "Tennis Australia applaud the work of Victoria Police and will continue to co-operate as much as possible in a pro-active fashion to remove any illegal activity from our sport.
"We have arrangements in place with Victoria Police regarding security and sharing of intelligence. We will continue to do whatever is necessary."