The Northern Territory Racing Commission (the Commission) has previously advised licensees that they should not accept and pay bets using cryptocurrency. However, the rise in acceptance of cryptocurrency in various arenas, and a number of requests from licensees, has caused the Commission to reconsider the matter. The Commission is also mindful of recent volatility in the value of cryptocurrency, and the need to ensure that risks are appropriately identified and managed.
The Commission has provided wagering operators with a draft regulatory framework for review and feedback. As well as seeking feedback on the draft regulatory framework, the Commission has requested that each licensee indicate whether they propose to accept cryptocurrency for the striking and paying out of wagers, and if so, whether they have determined which forms of cryptocurrency they would like to accept for this purpose.
The principles outlined in the consultation paper are a guide as to how principals relating to the acceptance of cryptocurrency for the striking of and paying out of wagers may operate but have not yet received Northern Territory Racing Commission approval and are not yet agreed to.
The draft principles outlined in the consultation paper consider:
· the application and operation of cryptocurrency;
· verification of cryptocurrency wallets;
· customer deposit and withdrawal procedures;
· logging of deposits and withdrawals;
· Responsible Gambling – maximum deposit limits;
· Trial periods for maximum deposit limits;
· Wagering Terms and Conditions;
· Exchange rates, including taxation and product fees;
· Reporting obligations; and
· Application for approval.
The Commission is seeking responses and feedback from wagering operators by close of business on 29 September 2022.