Is Bitcoin Online Gambling Legal?
The legality of Bitcoin gambling is the burning issue within the crypto and virtual gambling community. In this article, we will discuss the legal aspects of gambling with BTC online.
Key Facts on Bitcoin Gambling Legality
The legality of using BTC overall and Bitcoin gambling legality specifically is still quite unexplored. It is important to review each separate case of BTC usage as the majority of countries do not have specific laws that cover this virtual currency. On the other hand, certain states might have laws that regulate Bitcoin to a certain extent. This is why crypto users should always keep track of the regulations being adopted in their countries.
Law Regulating Bitcoin Gambling
Bitcoin is a decentralized currency that does not have a unified governing body to regulate its use. Only separate countries can adopt laws and regulations to limit BTC use specifically. As there is no person or central government to monitor Bitcoin, many people believe this currency to be illegal by default. However, Bitcoin is a regular currency just like the US dollar, with the only difference of it existing online. It can be used for both legal and illegal activities as much as criminals use dollars, euros, or yens. If your country does not have a specific law that forbids gambling with Bitcoin, you can safely consider such gambling legal.
Attitude of Different Authorities to Bitcoin
While the world is still trying to accustom to Bitcoin, certain countries already have certain thoughts and even laws regarding this currency. For example, it is illegal for Australian companies to offer gambling services for residents, while the Australians still are allowed to gamble with Bitcoin as long as they are not the providers. In Malaysia, it is completely forbidden to gamble online and perform any financial transactions on casino websites. Using BTC in the United States is legal because it is considered to be a currency by the IRS. However, there are only a couple of states that allow gambling; so, make sure to check those out.
Tax Implications to Gambling Online
Bitcoin is considered a taxable currency by the IRS in the United States. This is because it is now treated as more of a property than a currency. This means that all Bitcoin users in the US are not breaching the law as long as they are filing their taxes properly. Such policies make it more difficult for gamblers in the US to benefit from what BTC gambling has to offer.
Should a Bitcoin Gambling Site Have a Gambling License?
Yes, all gambling websites are obliged to have an appropriate license to offer legal services in different countries. Not all licenses allow legal operation across the globe as certain governments prohibit virtual gambling altogether. A license ensures not only legality but also security for gamblers.
Gambling Jurisdictions That Issue Licenses for Bitcoin Gambling
There are already a couple of special licenses that define Bitcoin gambling as opposed to virtual gaming overall. Such acclaimed jurisdictions as Curacao eGambling and the UK Gambling Commission already issue unique licenses for online casinos with Bitcoin solutions.
The Legality of Cryptocurrency over the Globe
While Bitcoin has been around for more than a decade now, there is still a lot of debate about whether it is legal or not. There is no central bank or authority to regulate this currency, which makes it more difficult to limit. There are only a few countries that fully prohibit crypto use, and some of them have specific limitations. Here are countries that limit BTC use.
Countries With a Banking Ban on Bitcoin
In some countries, there are certain Bitcoin-related bans implemented already. While cryptocurrency is technically legal in these countries, there is a banking ban imposed on Bitcoin. These countries are:
- Saudi Arabia
Countries Where It Is Illegal to Make Purchases with Bitcoin
While certain countries limit the use of Bitcoin to some extent, the other ones prohibit the use of this crypto completely. These countries are:
- North Macedonia
The list can be expanded any day; so, make sure to monitor crypto policies in your country.
What Happens if You Gamble at a Bitcoin Casino Illegally
Gambling illegally at a Bitcoin casino might cause various issues for a player. They include both illegal online gambling and illegal Bitcoin use. The penalties possible in such a scenario fully depend on the country of the gambler. Some countries forbid participating in online casino activities, which might result in fines or even imprisonment. The same goes for Bitcoin. As listed above, certain countries prohibit using Bitcoin altogether, not only gambling with it.
Another issue with illegal BTC casinos is that they simply do not provide any guarantees for a player. The smallest issue you might have is losing your hard-earned money or personal information. This is already something to be aware of and be extra careful.
List of Legal Bitcoin Gambling Sites in 2021
In 2021, there are hundreds of Bitcoin casinos available on the market. However, picking high-quality and legal options is not an easy task. Here are some of the best legal BTC casinos you can visit right now:
- Red Dog Casino – huge welcome bonus and secure encryption.
- Ignition – free-of-charge BTC transactions and almost 300 Bitcoin games.
- SuperSlots – live dealer options and hundreds of game titles.
- SlotsLV – unique bonuses for BTC users and a generous VIP programme.
- Big Spin Casino – provides a convenient payment method for each crypto available.
- El Royale Casino – a wide selection of Bitcoin slot machines and daily bonuses.
- BetOnline – convenient BTC deposit methods and a wide selection of sports betting options.
Advantages of Gambling with BTC
Bitcoin gambling has many fans for a number of reasons. This is not only a different kind of currency to pay for your services but a way to receive additional advantages. Here are some of the benefits of gambling with BTC.
One of the main complaints among fiat currency users is that withdrawal transactions can take literal days before they are finished. In this case, BTC is much more preferable as cryptocurrencies have a notably faster processing time. With Bitcoin, you can expect your winning money to be withdrawn in minutes, with the maximum withdrawal period being a single day. Because Bitcoin is a decentralized currency and does not have third-party control, it does not go through intermediaries, and the player can receive money almost instantly.
Anonymity and Privacy
Cryptocurrencies and Bitcoin especially are known for being extra secure and almost 100% anonymous. If you gamble with a normal currency like US dollars, you need to provide your credit card information. This means that you are also offering your personal data to a gambling website. This is not an issue if you gamble at a safe, legal, and reliable platform, but paying with BTC from a crypto wallet provides additional protection. All Bitcoin transactions are heavily encrypted, and your personal info is much more difficult to track.
Withdrawals at virtual casinos usually have additional fees. This causes various difficulties for players as it can influence the amount of cash a gambler can withdraw. With Bitcoin, there are little to no fees involved. This is already an expensive currency, and in case there is a withdrawal fee, it is very low and affordable. However, in many cases, there are no fees whatsoever.
Final Verdict: Is Bitcoin Gambling Legal?
Bitcoin gambling is legal in most places of the planet unless stated otherwise. Only a few countries have specific laws that ban either Bitcoin or digital gambling. For the most part, gambling with BTC is legal in case the casino you are playing at is legitimately licensed and authorized to offer gambling services in your country. Countries like the United States, Australia, and Great Britain mostly allow gamblers to participate in online casino activities and pay for services with Bitcoin. In addition, there are already special Bitcoin licenses that guarantee the legality and security of BTC gambling. Pay attention to the certifications of your virtual casino to find out whether it is legit or not.
Is Bitcoin Gambling Legal?
In general, yes, Bitcoin gambling is legal. This is because there are still few to no laws regulating BTC and other cryptocurrencies adopted in most countries. While there are no specific laws banning the use of Bitcoin for commerce and gambling, you can consider it legal. However, make sure to know the laws of your country regarding Bitcoin.
Are Online Bitcoin Casinos Legal?
A virtual casino is legal only if it has an appropriate license that allows it to operate in certain countries. As there are still very few laws concerning BTC use, any digital casino with certification can offer Bitcoin services as well. However, such institutions as Curacao and the UK Gambling Commission already offer Bitcoin licenses for digital gambling sites.
In What Countries Is Bitcoin Gambling Prohibited?
As of today, only a few countries in the world consider Bitcoin casinos specifically illegal. These countries are Nigeria, Ecuador, Kyrgyzstan, Bolivia, and Bangladesh. All other countries either fully allow legal usage of Bitcoin or do not deem it banned. Even if your country considers BTC legal, make sure to know if there are any limitations regarding its use.
Are All Bitcoin Gambling Sites Legal?
Not all crypto gambling platforms are legal. Each legal online casino should have at least one license that confirms its legitimacy. Most licenses allow legal operation in a selection of countries; so, make sure that your country is on the list. In case a digital casino is legal in your area and possibly even has a BTC license, it can be considered fully legal.