What is cryptocurrency gambling?
Digital currencies have a huge potential, and the rise of bitcoin casinos is another proof of that. More than 30% of cryptocurrency transactions are related to gambling. What is the difference between a crypto casino and a regular online casino?
BTC, ETH, SOL and other digital currencies provide players with a number of advantages. With fiat money, it takes from 2 hours to 7 days to process a withdrawal request. On the contrary, cryptocurrencies get withdrawn instantly. Moreover, card transactions and bank transfers require providing IDs and other personal information. Crypto gambling is completely anonymous since a player’s identity is not connected to the transactions they make in any way. This means that no government body can track how many bitcoins were spent on a particular website and who were the buyers.
In other aspects, bitcoin casinos are no different from standard online gambling platforms. They offer the same rules, betting limits, bonuses and other features. Still, the unique opportunities that cryptocurrencies offer definitely make them worth integrating into your business.
As for licensing, a permit from Curacao iGaming is a universal option for crypto casinos. It attracts a broad audience and makes entering the market fast and easy. If a gambling website supports bitcoin and other cryptocurrencies, all transactions can take place internally, without implementing third-party payment solutions.
In order to start playing in a crypto casino, one has to open a virtual cryptocurrency wallet, then buy the desired amount of coins and transfer them to a casino. The funds will be credited instantly. The withdrawal process is equally easy: users enter their wallet address and receive their winnings in the shortest time.
Another thing worth mentioning is that digital tokens can go up in price by 5-10% in just one day. For example, if you deposit $100 and win another $100, you can withdraw not $200, but $210-220.
It is hard to say what attracts customers the most: full anonymity of transactions, or the chance to increase profits due to cryptocurrencies’ volatility. Obviously, both these factors benefit players a lot.
Things to know about crypto casinos
When it comes to regulating cryptocurrency games, the European Union is leading the way. In particular, the first blockchain laws were adopted in Malta. The UK, on the other hand, officially recognizes Bitcoin as a virtual currency, but imposes restrictions on playing video slots, baccarat and other casino games with crypto. Operators that seek to offer crypto games must prove the legal source of the funds before applying for a UKGC (United Kingdom Gambling Commission) license.
However, not all countries in the world have such strict requirements for licensing a cryptocurrency casino:
- El Salvador – the first country in the world to adopt Bitcoin as legal tender. Cryptos are accepted even in restaurants and cafes;
- United States – the country has no laws banning bitcoin games. Some states, however, do not allow to «accept payments from persons involved in Internet betting»;
- South Korea – cryptocurrencies are banned, but crypto exchanges are operating in the country;
- Australia – gambling with digital tokens is not prohibited by law. The player only needs to make sure that the chosen casino is legally licensed and regulated by the relevant authorities.
Let’s summarize. In most countries of the world, there are no laws regulating crypto gambling. Playing casino games with bitcoin is not allowed, but not explicitly prohibited either. Governments’ attitude towards digital tokens is changing as more and more countries take a positive stance on cryptocurrencies and condemn any blockchain bans. Some jurisdictions (e.g. Curacao) issue licenses to online casinos that accept bets in crypto. Bitcoin casinos offer complete anonymity since these transactions do not require identity verification.
Is there a future for crypto gambling? One definitely should not ignore the impact that cryptocurrencies have on the growth of the iGaming industry. Playing video slots, bingo, poker and other games with bitcoin has a number of advantages, such as full anonymity, high transaction speed, and simple payment process. Gambling platforms that only accept fiat currencies lose a significant part of the audience and should consider joining the ranks of bitcoin casinos by applying for a Curacao license. Admittedly, crypto gambling laws need more work and hopefully we will see further development of the legislation in the coming years.