No matter what your occupation is, you must have heard about Bitcoin (BTC). During the last ten years of Bitcoin’s existence, people have treated the cryptocurrency differently. Skepticism, distrust, and doubt have been accompanied by interest and excitement. What do we eventually have?

According to CoinMap, a cryptocurrency acceptance monitoring site, the general number of places accepting BTC has risen over 700 percent since 2013. Back in 2013, there were 1,789 of such places, and at the start of 2019—more than 14,600, as per the data published at CoinTelegraph and provided by the Chief Executive Officer of CoinShares, a digital asset management firm. Among the biggest BTC-friendly corporations, there are giants like Microsoft and Shopify. When it comes to countries — the UK, South Korea, the US, Central Europe, and Japan are positive about cryptocurrencies. 

The gist of online gambling with cryptocurrency

Online casinos had gained popularity even before the birth of cryptocurrencies. And with the emergence of the latter, it is certain that digital money should transform the industry. Why?
To answer this question, let’s first define the most important challenges of online gambling.

● Personal information
Let’s face it, many online casinos rarely require much data from the user. The more you bet, the better. However, there are some that comply with KYC/AML policies to prevent money laundering.

● Payments
This point leaves much room for improvement, and it is quite understandable. Online betting always takes more time than traditional gambling. For instance, bank transfers can be processed for 2-5 days. 

● Transaction fees
When you make a transfer to online casinos, your money goes through several intermediary points on its way to the site and back. How could you avoid losing a huge percentage of your win while withdrawing it?

● Gameplay
Casinos are often associated with cheating, and the shift to the virtual space makes it even easier to fool a gambler. Rigged software is one such example of cheating. Is trust the only way out?

Making a turn to crypto

The use of cryptocurrency in gambling offers a solution to almost every aspect, which fiat does not fully cover. Let’s take a look at the real advantages of crypto in the betting world:

● Anonymity
Most crypto transactions are completely anonymous. No third party can steal either your personal or banking information during transactions. 

● Speed
The absence of intermediaries makes transactions several times faster. Due to blockchain technology, payments are made between two parties directly — the gambling site and the user. So, the payouts are instant. 

● Low fees
Blockchain network fees are the only commission required during the whole process of transacting. No extra processing — no extra money spent.

● Trustlessness
This is the primary reason for blockchain being safe. Blockchain-based gambling environment excludes any possibility of cheating. The software is so programmed that all the processes within it are transparent and easily checked.

Is BTC gambling against the law?

A general answer to this question would be no.

But, indeed, the whole situation is not that simple. The laws regulating both gambling and cryptocurrency lack details in jurisdictions of many countries. When it comes to the overlap of those two areas, the regulatory complexity increases. The thing is, there is no specific law, which prohibits betting with crypto. If you decide to start Bitcoin gambling, do prior research on the legal situation regarding this issue in your country.

The reason for gambling prohibition is mostly based on its potentially addictive nature and the fear of fraud. As for crypto gambling, its anonymity brings about concerns regarding its use. Major fears of authorities refer to money laundering and illicit items’ purchase.

The legal situation with BTC in the United States is the most diverse. There is the biggest number of crypto gamblers in the world, but the regulations on this matter differ from state to state. Among BTC-unfriendly states are Wisconsin, North Carolina, California, Connecticut, and New Hampshire. Apart from that, in Alaska, Indiana, Kentucky, Maryland, and Massachusetts online gambling is forbidden. 

Other countries impose strict regulations on crypto gambling as well. China, Israel, Turkey, and Russia are the nations with certain restrictions for online gambling. In particular, it is not allowed either to engage in online gambling or to offer such services to the citizens. This is also true for France and Germany. 

Where to bet with crypto then?

However, there is a number of places being almost completely friendly to BTC as a payment option in the gambling world. When looking at legal Bitcoin casinos listed in AllHighRollerCasinos.com, you may notice that many of them are licensed in Malta, Curacao, and Gibraltar. These countries have become a gambling heaven for many casino businesses. Moreover, they give reasons, which fully justify this decision. Even considering all the potential risks, positive influence on the economy is observed.

On the list of BTC-friendly states in America are Texas, Kansas, Tennessee, and Montana. Still, there are only four states, where online gambling, in general, is legal: New Jersey, Pennsylvania, Nevada, and Delaware. West Virginia is also on its way to making online casinos legal. 

Canada and the United Kingdom are Bitcoin-friendly countries with well-formulated laws regarding both the digital currency and online gambling. It is required to have a license to offer this kind of service to the citizens, which reduces the risk of issues with the law. 

What are the economic benefits?

The primary advantage of legalizing online crypto gambling for local governments relates to taxes. According to Wikipedia, in America, it is required to report gambling wins and losses to the International Revenue Service (IRS). Regular amount of tax equals 25 percent of all gambling winnings. Considering the experts’ claim that about 60 percent of BTC transactions are gambling-related, the general profit for a country is considerable.  

Will crypto gambling become a new casino trend?

Gambling is increasingly becoming more oriented at digital space due to the convenience and mobility of online platforms. 

The emergence of digital money results in online casinos making a profound shift to its active use. Why? It is faster, cheaper, and more transparent. It removes the downsides of traditional fiat use, such as delayed transactions and risk of the sensitive information breach. Once regulation of crypto gambling becomes clearer and more precise worldwide, the benefits won’t take long to prove themselves.

Author: Julia Beyers