Updated: Sep 13, 2022
The Northern Territory Racing Commission (NTRC) in Australia is now in discussions with gambling operators and licence holders about allowing cryptocurrency wagering in the territory's regulated industry.
While the NTRC exclusively regulates sports betting and gaming in the Northern Territory, the local government's decision to legalise crypto gambling could be a game changer for the Australian gambling sector. The NTRC formerly opposed the use of cryptocurrencies in the casino business, but its position appears to have softened.
The NTRC recently sent a paper to licence holders inquiring about the possibility of crypto gaming in the Northern Territory. The brief also solicits feedback on what regulatory and industry changes would be required to make this achievable.
Julian Hoskins of gaming legal company Senet told Cointelegraph:
“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 stated that if the NTRC moves forward with plans to allow crypto gaming, other states and territories are likely to follow suit.
The letter also specifies stringent identity verification measures that must be put in place if crypto gaming is to be included in present legislation. This means that the customer must establish their identity, get their crypto wallet address checked, and demonstrate ownership of the wallet. This is an effort to avoid potential money laundering, which is one of the major concerns that many casino regulators have with the use of cryptocurrency.
The NTRC has also proposed monthly deposit restrictions of roughly AU$2,000 and a maximum wager amount of AU$5,000 for the first 12 months of operation.
By fLEXI tEAM