As cryptos offer safety, privacy and anonymity, online casinos accepting digital currencies have become a big hit. However, the query that needs to be answered is whether crypto gambling is legal.
The initial years of cryptos saw authorities looking at it with lot of suspicion. In fact, many professionals still argue that most of the cryptos will disappear. Nevertheless, developed countries such as:
- The USA
- The UK
Have all begun tracking the flow of Bitcoins.
- In Canada, Bitcoin is no longer banned and cryptocurrencies are governed as money service businesses.
During the same period, enterprises engaged with virtual currencies must enroll with the FTRAC and satisfy all criteria, including the report of dubious transactions. This violates one of the key principles of cryptos, i.e. lack intermediates. Furthermore, there are countries where Bitcoin and other tokens are banned.
- Overall, there are over 55 countries and territories across the world where Bitcoin is legal and almost 15 countries with debatable scenario.
Last September, it was estimated that online casinos utilizing cryptos generate an extra profit of more than $150 million. The amount is expected to rise in the forthcoming years.
Most of the online casinos deal mainly with Bitcoin. Such platforms use custom built software to reduce intervention by humans. It implies that the software functions the role of a dealer.
The key difference between an online gaming platform accepting only fiat money and an online casino supporting crypto is that the latter works on P2P (peer-to-peer) network.
What Are The Advantages Of Bitcoin
The fundamental nature of cryptos make it possible to enable secure activity between two users. As the data transmitted is getting ciphered, total privacy is guaranteed. Obviously, gamblers are attracted to such a payment network.
The lack of intermediates paves way for quicker transactions. That is vital as cryptos are often subject to price volatility. Furthermore, the quick deposit (& withdrawal) process enables an enthusiastic gambler to start playing the game without delays.
In traditional casinos, all funds are controlled by casino executives. On the contrary, gambling platforms facilitating Bitcoin gambling do not have a centralized network for money transfer. It assists in securing users and their funds.
No extra charges
Almost all the major online casinos accepting cryptocurrencies do not levy transaction charges or other kind of additional fees.
As all the process, including playing of games, is conducted online, online casinos continue to rise in popularity across the globe.
What Is The Status Of Cryptocurrency Around The World
Nevertheless, there are countries where people are not too much inclined towards crypto even though both cryptocurrency and gambling is legal.
Broadly, all countries can be categorized on the basis of their stance on crypto and online gambling as follows:
- Countries where there is a restriction on online gambling.
- Countries which have banned cryptos.
- Countries which are friendly towards cryptos and online gambling
In countries such as:
Online gambling using cryptos are permitted and platforms offering such facilities need to get a license from the local regulator. Even, Hong-Kong, Gibraltar and the United Kingdom (also Isle of Man) follow similar rules.
In case of the following countries:
Local gambling platforms need to apply for regulatory approval, while overseas operators can accept clients from those countries without any license.
In the US, casinos are not legally allowed to accept Bitcoins as payment. Several gambling firms are incorporated outside the borders of the USA. Similar scenario exists in Malta. However, Malta Gaming Authority does provide license to online casinos.
It is up to an online gamer to safeguard himself while gambling in a prohibited country. All online gambling platforms provide a list of restricted countries.
Overall, it should be remembered that the scenario with legitimacy of Bitcoins and online casinos is different in various places and it is up to the gamblers to take adequate precaution.