The Northern Territory Racing Commission of Australia mulls crypto gambling regulation
Licence holders and gambling companies are given time till September 29 to provide the NTRC with their feedback
By Shashank Bhardwaj
The Northern Territory Racing Commission (NTRC) in Australia is reportedly in talks with gambling companies and licence holders about allowing crypto. This will include crypto wagering as a component of the regulated gambling industry. According to reports, the proposal ‘will allow wagers to be placed in crypto with no fiat exchange required.’ In Australia, gambling is mostly regulated at the state level. The NTRC is in charge of all gambling and wagering companies licenced in Australia’s Northern Territory (NT). Global wagering companies such as Betfair, Entain Group, Draft Kings, and Sportsbet are among these.
The NTRC recently sent licence holders a document. The document solicits their feedback on the potential for crypto gambling in the Northern Territory. The document also solicits feedback from licence holders on what regulatory and industry changes would be required to make this possible.
Julian Hoskins, the principle of one of Australia’s major gambling law and regulatory advisory firms, Senet, said that according to the document, “What it provides for is a licensee, say a sports bookmaker who holds a license in the Northern Territory, who wants to accept crypto 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.”
The draft, however, is not the final outline. It provides no assurance that the NTRC is ready to support crypto. However, it is an opportunity for operators to weigh in and express their thoughts on the subject. They will also be able to provide feedback on additional measures. As stated by Hoskins, “Now it’s clear from the draft framework that what they’re looking at is wagering using crypto and not exchanging into fiat.”
Operators have until September 29 to present their views to the NTRC. The NTRC wants to know if licence holders will allow their customers to make crypto deposits and withdrawals. Authorities also want to know if users can directly place bets using crypto. However, Hoskins believes that punters will need to place both fiat and crypto bets on the same platform. This is due to the fact that the two financial tools will not be interchangeable for gambling purposes.
The tax implications of using crypto this way in gambling are still unknown. It is assumed that the NTRC is still deliberating on the issue. The NTRC has recommended monthly crypto deposit limits of 2,000 Australian dollars, or approximately $1,300, for the first 12 months. The maximum monthly wagering limit is set at 5,000 Australian dollars (approximately $3,500). According to him, “Given the popularity of crypto, I would imagine that this would be very popular as an alternative to fiat. I think it’s got the potential to be quite material.” It is believed that other state gambling regulators would likely follow the NTRC if this initiative in the Northern Territory succeeds.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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