The legality of online gambling is a complex and constantly changing landscape, posing significant challenges for enthusiasts, operators, and regulators. With the emergence of BTC as the first cryptocurrency and its acceptance in different countries, gambling operator platforms saw this as a promising opportunity to engage potential gamblers who are cryptocurrency holders on their platforms and also to enable them to reap the benefits involved. However, the most important question remains: Is cryptocurrency gambling legal? Using cryptocurrencies as a payment method for gambling is considered legal in countries where gambling is allowed. However, it is crucial to understand the difference between using cryptocurrencies on gambling platforms as a payment method and gambling. To determine if gambling is legal in your jurisdiction, you must check the specific regulations for gambling.
In this article, we will explore the legal status of cryptocurrency gambling, the regulatory challenges, and the considerations that players should carefully weigh before entering these platforms. Continue reading to know if gambling is legal within your jurisdiction.
The Relevance of Cryptocurrency in Casinos and Sportsbooks
Cryptocurrency has appeared as a sustainable payment option in many online casinos and sportsbooks; the use of this payment option in many gambling platforms offers considerable benefits to users, which include:
1. Enhanced Safety
The enhanced safety that cryptocurrencies provide as payment option, significantly increases their popularity in sportsbooks and casinos as a trusted payment option. Unlike crypto, threats are common to users who link traditional payment methods due to their vulnerability to hackers. Since crypto is built on blockchain technology, it offers a decentralized model, i.e., a ledger records every transaction that takes place. This guarantees transparency and lowers the possibility of fraud. In the gambling sector, privacy is extremely important to players, so interacting without disclosing personal information will entice many users.
2. Faster Transactions
Conventional methods, such as bank transfers, might take several days to complete transactions, unlike crypto, where players can easily access their money. With this, they don’t have to wait for a long period. The seamless and rapid nature of crypto transactions attracts them more. Furthermore, transaction costs are typically less expensive than those of credit cards.
3. Global Accessibility
Geographical restrictions are reduced by cryptocurrency payment options, which frees casinos and sportsbooks to a global fanbase. Engaging in online gambling is restricted in some countries. However, these limitations can be broken through with the use of cryptocurrency payment methods. This is because participants across the world can wager online without having to worry about legal issues.
List of Countries Where Cryptocurrency Gambling is Legal
There are regulatory boards overseeing gambling activities in several countries, which issue licenses and also set regulations to guide operations. These entities make sure that those companies operate within legal requirements, so to offer such services, operators of gambling sites have to obtain licenses from them. Are you wondering: Is cryptocurrency gambling legal in your country? You’d know in this section. Notable countries where cryptocurrency gambling is legal include the following:
| Europe | Americas | Africa | Asia |
|---|---|---|---|
| Austria | Brazil | Angola | Armenia |
| Belarus | Canada | Gambia | Georgia |
| France | Colombia | Ghana | India |
| Poland | Curacao | Kenya | Macau |
| Switzerland | United States | Nigeria | Philippines |
It is important to note that many countries have legalized crypto-gambling, and these are just key countries in the region where it is legal.
The Most Important Regulators and Countries under their Jurisdiction
There are some important regulators that oversee the worldwide gambling sector. This is to guarantee safety and fair play for all players. The most important ones can be found in Spain, the United Kingdom, Malta, and Curacao. These regulators help maintain the integrity and security of the global gambling sector. They include:
1. Malta Gaming Authority
MGA is a reputable authority which was established in 2001. It is quite popular because of its rigorous screening process. It supervises all gaming activities in Malta and grants licenses to global companies. Due to its exposure across Europe, the MGA is preferred by many online casinos and gambling sites. Notable countries under its jurisdiction include Germany, Denmark, Sweden, and the Netherlands.
2. Curacao Gaming Control Board
The CGCB is among the oldest regulators that can be found in the market of gambling online. The operations of this board date back to 1999, which is 25 years ago. Because it provides a single license for all gambling activities, it is financially viable for several operators. Startups continue to favor the Curacao gaming license due to its relaxed regulatory structure. The CGCB also serves a global audience while supervising Curacao-based gaming businesses. Countries using the GCB include Poland, Hungary, Norway, Cyprus, and Bulgaria.
3. Isle of Man Gambling Supervision Commission
Just like CGCB, this regulatory board is also among the oldest regulators. It was created in 1962 and has been around for 62 years. The Isle of Man GSC is quite popular for its proactive steps to curb money laundering in the gambling sector. It is responsible for all gambling actions on the island.
4. Directorate General for the Regulation of Gambling, Spain
This agency oversees the gaming sector in Spain. In Spanish, it is referred to as the Dirección General de Ordenación del Juego (DGOJ). It is responsible for compliance with Spanish gambling laws. It emphasizes fair gaming methods, player protection, and responsible gaming. Operators aiming to enter the Spanish market are granted licenses by the DGOJ.
5. United Kingdom Gambling Commission
The UKGC is one of the world's strictest gaming regulators. It was created by virtue of the Gambling Act of 2005. It is responsible for all gambling-related activities in the United Kingdom. The UKGC is a model regulator because of its stringent policies regarding player safety, openness, and equity. Operators with a UKGC license are frequently regarded as extremely trustworthy. Other countries using this license include those within the European Union.
Is It Necessary To Use VPN to Access Crypto-Casinos and Sportsbooks?
You should be aware that there are countries where you can’t access gambling platforms. How can you bypass these restrictions? VPNs are the best option to use if you want to visit a gambling site from a country with blocked IPs. A reliable VPN service can help you access crypto-casinos easily despite the stringent rules where you are located. Here are some other benefits of VPN:
1. VPN services allow you to log in to different Gambling Platforms that accept cryptocurrencies as a payment method while gambling.
2. It helps to encrypt the data you input on the network so as to make interception harder.
3. It provides an additional line of defense against viruses, malware, and phishing scams.
4. It allows you to use cryptocurrency for payments anonymously by hiding your IP address from hackers.
Please note that using a VPN can effectively bypass restrictions in blocked countries. If the gambling site detects your VPN usage and its rules prohibit it, the operator can terminate your account. This action would result in the loss of all your funds and profits, even if your account holds cryptocurrency.
Most Popular Cryptocurrencies Used in Gambling Online
The gambling industry is now using cryptocurrencies for many financial operations, such as online payment and withdrawal activities, because of the convenience, security, and anonymity offered by cryptocurrencies. Some of these cryptocurrencies are way ahead of many others in the sector, and the reason for this is their capital base, innovative features, widespread acceptance, and popularity. The top popular crypto you can find in online gambling payment methods include:
1. Bitcoin (BTC)
Bitcoin is the most advanced and popular cryptocurrency in the world, and it dominates online gaming. Many gamblers prefer it because of its innovative nature and widespread acceptance, which makes it the leader with a whopping 73.2% usage. Bitcoin's secure nature, substantial liquidity, and decentralized structure improve the gaming experience. These factors help to enable speedy and low-cost transactions, and if you deposit with Bitcoin in some online casinos, you will receive certain bonuses.
2. Ethereum (ETH)
Ethereum is another renowned payment method in the gaming industry. Because of its smart contract feature, decentralized applications can be created, which can lead to the existence of more transparent and equitable gaming platforms. Ethereum is a desirable alternative, and because of its quick transaction period, it has a record of 9.9% usage in gambling-related transactions. It has lower transaction fees, unlike Bitcoin. If you do not like waiting long for confirmations, Ethereum is ideal.
3. Litecoin (LTC)
Many refer to Litecoin as Bitcoin's baby brother. This is because of the similar characteristics used in creating the coin. It is a great choice for speed-oriented online gamblers, which is a result of a different hashing algorithm put in place to enable quicker transaction confirmations. Litecoin has a record of 6.6% usage in gambling-related transactions. The transaction fee is cheaper, which makes it a more affordable option for players. It is now being accepted at many other casinos due to its expanding user base.
4. Ripple (XRP)
Ripple is distinguished by its exceptionally quick transaction speeds, and in an ecosystem with frequent transactions like online gambling, it stands out. Its low transaction fees also set it apart from many others. As an online gaming user seeking speed, Ripple can be trusted and depended on due to its capacity to process large volumes of transactions on time.
5. Tether (USDT)
Tether can be referred to as a stablecoin, which means that it has its value linked to another currency. Th e intention is to offer a substitute for the extreme volatility of the prominent cryptocurrencies. Tether is tied to the US currency in this situation, so its value is mostly determined by the US dollar. It is a popular option for gamblers who wish to stay away from the volatility associated with other cryptocurrencies. Additionally, the coin enables quick and reliable transfers and records a 4.6% usage in gambling-related transactions.
Here are Different Options you can use to Withdraw Winnings
While gambling, you are bound to win at some point. So, in cases where you indulge in crypto gambling, and it gets a bit complicated, have you thought of how to withdraw your earnings? Well, making withdrawals from cryptocurrencies into fiat money involves several options, which depend on what they offer. Some include transaction speed, cost, and convenience, so here are common methods you can use to convert your funds.
1. Cryptocurrency Exchanges
Cryptocurrency exchanges are the most used platforms among users who want to withdraw their winnings via conversion of crypto into fiat currencies. Trusted exchanges like PlasBit allow users to sell their crypto and withdraw funds directly to their bank accounts. You just have to transfer your winnings to the exchange platform, sell the crypto for your desired fiat currency, and initiate a withdrawal from your bank.
2. Peer-to-Peer Platforms
P2P platforms provide a more decentralized approach to converting crypto into cash. The platforms allow cryptocurrency users to directly purchase and trade cryptocurrency with one another. Unlike conventional trades, this option does not require intermediaries. The platforms offer a number of advantages, such as flexible withdrawal policies, more payment choices, and faster trading. However, they could have disadvantages such as reduced liquidity and the need to manage transactions personally. Be aware that this option requires caution because there has to be trust between parties.
3. Crypto ATMs
Crypto ATMs offer a quick way to withdraw earnings, and they are extremely convenient when you need to convert your crypto into cash. These machines can be found in many countries worldwide as they allow users to deposit their crypto and withdraw cash on the spot. However, the transaction fees seem to be higher than other methods because it has the edge of instant access to funds without any complication.
How to Minimize Risks While Gambling Online
Engaging in online gambling is an exciting thing to do. In fact, it is also enjoyable, but it comes with risks. Some of these risks include fake platforms, insecure payment gateways, losing hard-earned money, scams, and stealing of information. How can you mitigate these risks? There are methods to apply to ensure a safe experience, which include:
- Selecting reputable sites: Whenever you want to gamble online, tick some relevant boxes. Search for popular, licensed, and regulated betting platforms. What you need to check includes reviews, ratings, and licensing information. It will be clearly displayed on the site. Also, look out for the regulatory body overseeing the platform. This helps to enable a safe environment.
- Setting reasonable budgets: Before you gamble, make a decision on how much you want to spend. Segregate the amount you are willing to lose from the one you cannot afford to. In all you do, make sure to stick to this budget. This is regardless of your winning or losing streaks. You should also avoid chasing losses. Doing such can result in more unplanned spending.
- Using trusted payment methods: Using secure payment methods will save you from a lot of stress. Since they offer protection from fraud, the safety of your funds is guaranteed. Worried about what exchange platform to trust? PlasBit is a reliable platform you can use to exchange your crypto for fiat.
- Understanding the slots: You need to carefully comprehend the rules of your preferred games. This will even help you save funds. Try to learn the odds and strategies of those games. This will significantly reduce the risk of making poor decisions. In the long run, you will end up saving money that could have been wasted due to ignorance.
Most Popular Games to Play in Crypto Casinos
Crypto casinos have become increasingly popular as they provide a special fusion of cutting-edge crypto technology with conventional gameplay. Among the many games offered, some stand out as the most popular options for players. Is cryptocurrency gambling legal in your area? Then, you should try out these games.
1. Online Slots
Online slots are the most played game at all online casinos because they are enjoyable and straightforward. Game developers have been able to create much more entertaining online slots because of technology, as a wide range of themes are now included in online slots. This helps draw players from many backgrounds.
2. Blackjack
Next up is blackjack. This is, without a doubt, the most played card game in both traditional and online casinos. The reason is that blackjack is fun to play, and many argue over whether skill or luck matters more in it. It is important to note that winning requires a combination of the two. Blackjack has the lowest house edge out of any other casino game. When live-streaming technology was added to online casinos, its popularity increased significantly.
3. Roulette
You can find roulette at many online casinos that utilize the red-and-black wheel due to its iconic nature in the gambling industry. Since the majority of gaming websites have adopted cryptocurrencies recently, roulette has been a widely played game. Over the years, the game has led to a lot of discussions because many people ponder if it's a game of chance or skill. The basic truth is that roulette is entirely dependent on chance, which makes it even more attractive to players.
4. Poker
Poker is a popular card game that has also captured players' attention for many years. This is due to its unique combination of psychology, skill, and strategy. It offers players quick payments and anonymity, which makes it a desirable choice for enthusiasts. Poker is a well-liked option for gamers at cryptocurrency casinos because of its competitive gameplay and generous payouts. It also offers a thrilling gaming experience that entices players to keep playing.
How to Calculate Tax When Withdrawing Your Winnings
After winning on gambling platforms, you have to pay taxes before you can withdraw. Now, how do you know the amount that will be deducted from the winnings? With the help of the PlasBit tax calculator, you can determine this. We are not responsible for reporting your taxes, so it is within your purview to do so. Here is a guide on how you can calculate it.
1. Fill Your Residency Information: Select your residency status from the options provided. This step ensures accurate tax calculations based on your filing status.
2. Enter your estimated Taxable Income: Enter your estimated taxable income in the designated field. This figure is crucial for determining your overall tax liability.
3. Put in your Crypto Transaction Details: Fill in the "Cost of Crypto Purchase" field with the total amount you spent acquiring the cryptocurrency. After that, input the "Proceeds from Sale of Crypto" to reflect the total amount received from selling your cryptocurrency.
4. Select the Holding Period: Choose the holding period corresponding to your cryptocurrency asset.
5. View Estimated Tax Details: The Crypto Tax Calculator will automatically generate estimates based on the provided information for your capital gains tax.
Tips to Prevent Getting Scammed in Crypto Gambling
Crypto gambling has become more popular in recent times. This is due to the anonymity, fast transactions, and exciting games it offers, but nowadays, scammers are taking advantage of the situation. Their intention is to rip players off their funds, so key tips you can follow to prevent getting scammed include:
- Do Due Diligence: Do your research on a casino website before making any cryptocurrency deposits. Look into the platform's reputation, user reviews, and comments. Reputable websites frequently have a strong track record.
- Verify the Credentials: Verify whether the platform is overseen and licensed by reputable bodies. A platform with a license is more likely to follow financial and fair play laws. This is an additional degree of protection for you.
- Keep your Wallet Secure: Use strong, distinctive passwords to safeguard your money. Also, you can turn on two-factor authentication for enhanced security. Finally, your recovery phrases should never be shared with anybody.
Conclusion
Overall, you need to carefully check out gambling platforms before using them. Not all countries legalize gambling, so you should do due diligence. Is cryptocurrency gambling legal in your country? If yes, just remember that gambling has its risks, and you should follow risk management strategies to protect your funds. You can read more about how to manage risk management when investing in the article. Stay safe.
