With the rise of digital currencies, so has the use of cryptocurrencies in online casinos. As a result, today, it is not an uncommon occurrence to be able to transact using these forms of payment. In what follows, we will look at whether using crypto to gamble is legal or if you should consider it.
Can You Gamble with Crypto?
The question regarding if you can gamble at crypto casinos online using Bitcoin and other cryptocurrencies can be answered by looking at the laws of your country. Each country has laws and regulations around online gambling and using digital currencies. Therefore, it would be prudent to consult these laws before attempting to gamble online at crypto casinos.
Crypto Gambling in the United States
Using crypto in the US is entirely legal as the US government considers it a form of currency which is taxable under the IRS. On the other hand, no specific laws make crypto gambling illegal or even make provisions for it. Currently, half of the states in the US have legalized online gambling in one form or another.
Crypto Casinos in the United Kingdom
Gambling with digital currencies in the UK is much easier than in the US, as the United Kingdom Gambling Commission (UKGC) recognizes cryptocurrencies as valid tender. As a result, residents of the United Kingdom can use Bitcoin and other cryptos to play at any UKGC-licensed casino, which is regulated by this governing body, although the transactions are not.
Crypto Gambling in the Rest of the World
There are just about as many laws and regulations around crypto these days as countries and agencies regulate gambling. For example, in Malta, the Malta Gaming Authority (MGA) do not make provision for their licensed casinos to provide crypto deposits even though Bitcoin and other cryptocurrencies are very popular. Currently, the MGA is working on a way to allow licensed casinos to accept these digital currencies.
Gibraltar takes a different approach to cryptocurrency gambling. Gibraltar Gambling Commission (GGC) launched a legal framework in 2018 for businesses to accept cryptocurrencies. Some other countries are also looking at how to increase the use of crypto and have set out specific regulations. However, crypto is rather complicated and operates in a grey area in many countries.
Be Wary of Crypto-Gambling
Since crypto is not regulated like fiat currencies, some degree of caution should be taken. The crypto market is constantly fluctuating, which can see significant increases or decreases in value within very short timeframes. Additionally, there is very little oversight regarding cryptocurrencies; therefore, transactions can often be irreversible. Therefore, due diligence should always be done, and the casino’s reputation should be researched before making any transaction.
Whether it is legal or not to play at crypto casinos in your jurisdiction entirely depends on the laws of the country where you find yourself. It is also important to note that these laws can change at any time, so some research should always be done before playing at any online crypto casino.