This is one of the burning questions on the lips of millennial and Gen Z investors in cryptocurrencies that also enjoy a flutter on the UK crypto sports betting markets.

The use of cryptocurrency with UK-licensed bookmakers is still strictly prohibited, as is its inclusion in the latest sign-up promotions, which remain fiat cash only. This includes event-specific and match-specific bonuses as well as enhanced odds specials and money-back promotions.

The landscape of the UK Gambling Act 2005

Technically, using cryptocurrency to bet on sports is not unlawful in the UK. There is no such legislation that prevents users from doing so at platforms that permit crypto-based deposits and withdrawals. However, no online bookmaker will be able to obtain a license with the UK Gambling Commission (UKGC) if it does allow crypto-based transactions. The current Gambling Act 2005 is in the process of being reviewed by the UK government. In its existing guise, it does not mention cryptocurrency due to being 17 years old.

There is no indication that the long-awaited whitepaper review of the act will recommend crypto-based sports betting services soon.

In the meantime, a grey market for UK crypto sports betting will persist. UK bettors can use sites accepting deposits in leading crypto assets like Bitcoin. However, they should be cautious if the site is unlicensed and unregulated on the British Isles.

The risks of ‘going unregulated’

Those using an unlicensed, unregulated UK online bookmaker have no legal recourse with the UKGC if they face issues. These sites also don’t follow the mandatory anti-money laundering (AML) rules required of licensed operators. AML checks ensure that clients’ funds are used legally.

Unregulated sites have complete freedom to set their own odds, even if they are less competitive than other bookmakers. They can also refuse to pay out winning bets if they believe there was a “palpable error” in the odds set by their traders. Without legal protection and guarantees, using an unlicensed operator is risky.

It’s safer to convert crypto assets to fiat currency via a crypto exchange and use them with a licensed UK bookmaker. This allows you to fully utilize your digital assets while staying within the law. Whether crypto will become a regular feature in UK sports betting is uncertain, and it’s unlikely to happen anytime soon.