The Tasmanian Government says it is seeking advice on a proposal from the founder of Hobart's Museum of Old and New Art (MONA) to open a casino for high-roller tourists.
MONA founder David Walsh wants to build a small casino for high rollers as part of a hotel planned for the Berriedale site in northern Hobart.
He has submitted a proposal to the Government to build a pokie-free casino with no more than 12 gambling tables.
In a statement, the State Government said it had received a proposal and was seeking advice.
If Mr Walsh is given the green light, it would break Federal Group's 20-year monopoly on operating gambling venues in Tasmania.
Federal's exclusive arrangement is due to expire in 2018.
Local Mayor Stuart Slade was surprised by Mr Walsh's idea, but welcomed the absence of poker machines.
"We do have a number of poker machines in the City of Glenorchy, and of course that would just add further to that," he said.
"It's my understanding... this is for a select group of people who wish to participate in a form of gambling and pokies wouldn't be a part of that."
VIDEO: David Walsh looks at a new MONA business model (7pm TV News TAS)
Federal has declined to comment on the casino proposal.
MONA has been credited with bringing thousands of extra tourists to Tasmania and boosting the local economy.
Mr Walsh has said tourism figures showed his venture generated 150,000 hotel bed nights each year.
The Tourism Industry Council's Luke Martin said MONA had been briefing industry on its plans to expand accomodation.
He believed the hotel would be a huge drawcard with or without a casino.
"I think everything MONA does is absolutely cutting edge, it's innovative, it captures attention," he said.
"Ultimately what that incorporates, whether that's a casino or business events space, MONA is within its rights to look at the options and investment.
"Whether it does incorporate something like a casino, that's obviously got a regulatory issue and they're going to have to pursue that with the State Government."