Bitcoin sports betting in Australia is put to a stop after Australia’s leading gambling licensing agency issues a warning to license holders to cease and desist if they are offering cryptocurrency transactions. The warning was issued at the beginning of the month, only days after a local betting operator launched the first licensed platform for Bitcoin betting in the country, shattering the hopes of local bettors who were eager to engage in cryptocurrency wagers.
NTRC Bans Cryptocurrency Wagers
At the start of February, sportsbetting operators in Australia that hold licenses from the Northern Territory Racing Commission (NTRC) received emails from the gambling regulator informing them that they will be issued a cease and desist order if they are already allowing cryptocurrency transactions in their operations. The ban is seen as a direct response to the launch of a cryptocurrency betting platform by NTRC-licensed bookmaker Neds.
The NTRC is the number one licensing body for online operators in the country that offers favorable licensing conditions and tax advantages to its licensees. By showing antagonism towards cryptocurrency betting, the regulator is directly standing in contrast to other big regulatory bodies which have made moves to allow cryptocurrency betting.
The UK Gambling Commission, for example, already allows digital currency transactions to licensees as long as they adhere to the AML (anti-money laundering) policies of the Commission. The Malta Gaming Authority is also reportedly gearing up towards allowing cryptocurrency betting for its licensees as part of a country-wide attempt to make Malta a leader in blockchain legislation.
NTRC’s ban seems to be in line with the stance of the local government which has thus far introduced a number of limits to holders of gambling licenses. Some of the restrictions that were set in place during 2017 were limits on televised betting adds and online poker.
Neds Sportsbook Immediately Folds
NTRC’s ban followed the launch of a cryptocurrency betting platform from Australian bookmaker Neds which happened a week prior. According to a press release from the bookmaker, the new site was to be a cryptocurrency-only site that would allow deposits and withdrawals via Bitcoin but without the option to convert cryptocurrencies into fiat money.
The site was kicked off with Bitcoin as the only cryptocurrency betting option but plans were revealed for other altcoins to be introduced if there is demand from bettors. The odds were to be the same as with the regular Neds site, with the only difference being that bets will be placed in mBTC. To stimulate Bitcoin holders to invest some of their cryptocurrency into sports betting, the site reportedly offered to cover up to 2.5% of the transaction fees for sending Bitcoin to it.
A rising star in Australian sports betting, Neds was launched by former CEO of Ladbrokes Australia, Dean Shannon, in October 2017 and gathered 75,000 customers in the short timeframe since, 80% of which were said to be race bettors. The following month after its launch, Neds was immediately forced to pull back some of its advertisements on free-to-air TV, social media, and websites, after complaints about them were filed to the FSA (Financial Counselling Australia) – a body that aids problems gamblers.
Following NTRC’s warnings, the crypto.Neds domain was shut down and a notice was posted that the platform is online and awaiting “further instruction from NT Racing Commission”. Only time will tell whether the NTRC will change their mind, and until that time comes, local Bitcoin holders will have to resort to using other Bitcoin sports betting sites online.