Online casinos have been among the most rapid cryptocurrency adopters in all internet-based businesses. Now, despite the growing number of ‘crypto-casinos’, many interested gamblers still don’t understand how to gamble online using Bitcoin legally. If you’ve ever asked yourself, “Is Bitcoin Gambling Legal?” here is what you should know.
There are no laws that govern Bitcoin gambling in general. It is neither officially permitted nor prohibited. Every country has some kind of gambling regulation. However, very few governments expressly prohibit the use of cryptocurrency. You are subject to the online betting laws of your country.
Crypto Gambling in an Online Casino
The primary difference between a crypto casino and other online casinos is the currency used to deposit funds and withdraw winnings. Crypto casinos mainly accept crypt currencies, while other casinos accept FIAT.
There are numerous advantages to using digital currency.
For example, if you play with traditional currency, withdrawals can take between a few hours and several days. Crypto withdrawals, on the other hand, are instantaneous! Furthermore, using methods such as bank accounts will frequently necessitate submitting identity verification data before you can play.
Because your identification is never connected to any transaction, placing bets with cryptocurrency is entirely anonymous.
How Do Bitcoin Casinos Work in Online Gambling?
Many crypto online casinos function similarly to their regular or conventional counterparts. The only difference here is the process of withdrawing cryptos after a winning or losing bet. For new players who want to try their luck here, crypto casinos offer them an in-house wallet via which they can send their Bitcoins.
When it comes to enabling games, the casino takes bets based on a user’s saved crypto cash. In this situation, players often deposit a first cryptocurrency wager from their wallet, and depending on their performance in a game; they may lose or win.
Today, Bitcoin casinos have a lot to offer players, like ‘Crypto jackpots’, where players may win amounts of up to 500 BTC! All earnings are deposited to the player’s in-house wallet when a game is over. From there, the participant may opt to transfer the funds to their private wallet or continue playing.
However, it is essential to know that many Bitcoin casinos in the online gambling world have withdrawal restrictions to prevent patrons from cashing out everything at once. Before you play online casino games using cryptocurrency, you must read the terms and conditions to know how everything works. If you don’t take your time and read the terms and conditions, you can be in for some unpleasant surprises.
Critical Facts About Bitcoin Gambling Legality
Is there uniform legislation to regulate this type of Bitcoin gambling? The legality of online gambling in your country determines whether it is lawful or illegal. If your jurisdiction allows online gambling, you can wager with Bitcoin at a casino that takes cryptocurrencies. Crypto gambling, for example, is prohibited in Cuba, France, Israel, Saudi Arabia, Ukraine, Iceland, and China.
In General:
- There are no laws that govern Bitcoin gambling sites in many countries. This means it is neither permitted nor prohibited by law.
- Various agencies’ perception of Bitcoin is rapidly changing. More and more jurisdictions are positively accepting Bitcoin and debating regulating blockchain-based services, including Bitcoin.
- However, most governments still do not recognize cryptocurrency as a legitimate currency. Because they do not regard it as ‘real’ money, no rules governing traditional online casinos apply to cryptocurrency gambling.
- Despite the aforementioned, authorities in regions where gaming is expressly forbidden, such as the United States, may still take legal action against online platforms or bettors who use Bitcoin to gamble online.
- Online Bitcoin casinos provide complete anonymity to players. Bitcoin payments are typically not subject to verification. However, regarding $2000 or more, reputable operators usually request data for the player’s minimum identification. This procedure is required to ensure that the CFT and AML laws have not been broken.
- Some gambling jurisdictions have already granted licenses to Bitcoin-accepting casinos like Curacao. This means they are responsible for overseeing the operation of crypto websites. An online casino is legal as long as it follows the regulations and rules of the chosen jurisdiction.
Should Bitcoin Casinos Have a Gambling License?
An online casino must apply for a betting license to legally process payments and operate. Many jurisdictions, however, allow Bitcoin casinos to run without a license. Nonetheless, unlicensed operators, like standard online casinos, should be avoided.
Because there is no supervision in unregulated jurisdictions, the risk is a bit higher. They can vanish overnight, along with their customers’ digital currency deposits, which are nearly impossible to recover or traceable. Malta and Curaçao are currently the best jurisdictions for traditional casino licenses or a combination of fiat/crypto licenses.
Bitcoin Gambling in Online Casinos Worldwide
The European Union is on the frontline of the digital currency movement as a pioneer in legalizing cryptocurrencies. Nonetheless, there is still no comprehensive legislation to govern crypto-related activities.
Malta is the industry leader in crypto legislation. It was the first jurisdiction to enact VFA, MDIA, ITAS, and blockchain legislation. Some leaders see it as the most iconic legal system in place today. This means that you can legally play all your favorite games, including online poker, blackjack, and slots, in any licensed casino within the jurisdiction.
For example, the Unlawful Internet Gambling Enforcement Act prohibits all forms of online gambling using crypto in the United States. This means that authorities may still take legal actions against Bitcoin gambling websites and players who use Bitcoin or other cryptos. It prohibits ‘knowingly collecting funds in connection with another person’s involvement in a bet or wager that includes the use of the Web and that is prohibited under any state or federal law’.
However, some jurisdictions have illegalized cryptocurrencies, but crypto exchange platforms remain legalized. A good example is South Korea.
On the other hand, some countries are boldly moving forward with cryptocurrency collaboration. El Salvador, for example, became the first nation to adopt Bitcoin as a legal currency in 2021.
Although the United Kingdom recognizes Bitcoin as a store of value, cryptocurrency gaming is subject to many restrictions. Casinos that want to provide Bitcoin betting services, whether in sports betting or any other form of gambling, must guarantee that they can meet the rules regarding identifying the source of money before completing an application.
Failing to do so may result in the application being denied. The confirmation procedure is lengthy and may take a while, but it is necessary to guarantee lawful cryptocurrency activity in the territory.
Advantages of Bitcoin Gambling
Because of blockchain technology, online casinos that accept Bitcoin offer numerous benefits over traditional online casinos.
- Anonymity
Due to the nature of Bitcoin, only secure Bitcoin transactions between two users are possible. The algorithm encrypts all data about who transmits and to whom. It is critical for many players to maintain their anonymity.
- Transfer Speed
Transactions are completed swiftly since there is no third party involved. Furthermore, the rapidity with which deposits are accepted enables players to begin playing and get withdrawals as soon as possible.
- Decentralized Structure
All money in traditional casinos is in the hands of the casino’s proprietor. Bitcoin gaming sites do not have a single money transmission hub. This contributes to the protection of users and their interests.
- No Extra Charges
Most cryptocurrency-related online casinos do not charge transaction fees or any supplemental charges.
- Accessibility
Because of the technologies and the development of this industry, many individuals can play games at the same time, ensuring game accessibility all over the globe.
Is Bitcoin Gambling Safe?
Bitcoin gambling is pretty safe as long as the website is legitimate since all transactions take place utilizing the security of the blockchain. But be careful; several scammers are out there. Do your homework before transferring your hard-earned Bitcoin to a gaming site.
The Best Way to Gamble on Cryptocurrencies
Crypto-casinos provide all of the standard online casino games, including table games and slots, and some even feature sports betting. Here are the steps to take if you wish to try an online Bitcoin casino:
- Pick a Cryptocurrency
It would be best to convert cash into your preferred cryptocurrency before playing. Be careful here because some options are not accepted. If you are a novice in the game, go for popular cryptos like Bitcoin or Ethereum. They are widely known, so their chances of being accepted are higher. You can buy cryptos from different online crypto exchanges using Fiat via bank transfer, debit card, etc.
- Get a Digital Wallet for Your Crypto
Do your research and make sure that you go for reliable services.
Various service providers have different advantages. For instance, Coinbase‘s crypto-exchange service allows you to convert Fiat currency into crypto and vice versa swiftly. Without a wallet, you won’t be able to trade or store crypto. After that, transfer your crypto into the digital wallet.
- Make a Deposit
At this point, you’ve completed all of the complicated tasks. All that remains is to wire your cryptocurrency to your gaming account and start playing. It’s that simple.
When you want to withdraw your winnings, simply deposit them into your crypto wallet and exchange them for your local currency.
Final Thoughts
Bitcoin gambling is quite simple. However, online gamblers should know that cashing out or loading your account differs from using bank transfers, cards, or e-wallets. Most Bitcoin casinos will usually indicate the steps you should take to deposit or withdraw money on their site quickly and seamlessly.
Nonetheless, the concepts of cryptocurrency and crypto gambling are still unclear and remain largely unregulated. So, if online gambling is not restricted in your country, you can participate in Bitcoin gambling without getting in trouble with the authorities.
