The Northern Territory licenses online casinos, sportsbooks and racebooks. Licenses are issued for five-year periods. Initial and ongoing audits are required. Racing bets are taxed at 1.55% when they are from Australia, and 0.5% otherwise. Sportsbook bets are taxed at 0.5% when they are from Australia or New Zealand, and 0.25% otherwise. Online gaming is taxed at 4%, and there is no licensing fee beyond this tax. Betting exchanges can legally operate in the Northern Territory.