Australia’s Northern Territory Racing Commission (NTRC) is currently in consultation with gambling companies and license holders over a proposal to allow cryptocurrency wagering in the territory’s regulated industry.
Proposal will allow wagers to be placed in crypto with no fiat exchange required
While the NTRC only controls sports wagering and gambling in the Northern Territory, a move by the local government to allow crypto gambling could be a watershed moment for the Australian gambling industry. The NTRC has previously been strongly opposed to the use of cryptocurrencies in the gambling industry, but its stance now appears to have softened.
The NTRC recently sent a document to license holders looking for their input on the potential for crypto gambling in the Northern Territory. The document also seeks feedback on what regulatory changes and industry changes would need to be implemented to make this possible.
Speaking to Cointelegraph, Julian Hoskins of gambling law firm Senet said:
“What it provides for is a licensee, say a sports bookmaker who holds a license in the Northern Territory, who wants to accept cryptocurrency for striking or paying out wages, [is that they] need to apply for consent to be able to do that. And there’s certain conditions that attach to that. Now it’s clear from the draft framework that what they’re looking at is wagering using cryptocurrency, and not exchanging into fiat.”
Hoskins also noted that if the NTRC push forward with plans to allow crypto gambling, it would be highly likely that other states and territories would follow suit.
The document also outlines strict identity verification procedures that must be implemented if crypto gambling were to be incorporated into the current regulations. This means that the customer will need to prove their identity, have their crypto wallet address verified, and prove that they are in control of the wallet. This is a move designed to prevent potential money laundering, one of the biggest issues many gambling regulators have with the use of cryptocurrencies.
The NTRC has also proposed deposit limits set at around AU$2,000 per month for the first 12 months of operation and a maximum wager amount of AU$5,000.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.