Regulator crushes hopes for bitcoin wagering

Accepting and paying out bets in cryptocurrency will soon be banned for operators licensed in the Northern Territory, after the gaming authority released a warning to bookmakers on Friday.

Neds, a bitcoin-based wagering operator which only launched last week, on Monday temporarily shut down its site “pending further instruction from NT Racing Commission.”

The cryptocurrency bookmaker is headed by CEO Paul Cherry, and managing director Dean Shannon, who were both formerly in senior positions at Ladbrokes Australia.

According to the Australian Financial Review, the Northern Territory Racing Commission sent an email to all corporate bookmakers registered in the territory on Friday, asking all to stop accepting bets in bitcoin and other cryptocurrency.

“The chairman of the Racing Commission … is intending to issue a formal communique to all sports bookmakers and betting exchange operators licensed in the NT if currently transacting in cryptocurrency (for example Bitcoin, Ethereum and the like) for their wagering operations to immediately cease and desist,” the email said.