Its a very common question we get daily from people who want to run their own crypto currency online casino and sportsbetting website.The legislation in the area of Bitcoin gambling is very immature and leaves a lot of space for speculation.
Operators starting their online casinos that will accept Bitcoin are often confused by controversial facts and ambiguous decisions of authorities in regards to the cryptocurrency.
As of today there are no single, straight forward answers to the questions above. However, here are some useful points that need to be understood regarding bitcoin casino:
1) In general there are no specific laws regulating Bitcoin gambling. It is neither officially allowed nor prohibited.
2) Attitude of different authorities to Bitcoin is changing quite rapidly, with more and more countries looking at Bitcoin positively and discussing regulation of cryptocurrencies and blockchain-based services. However, most governments today are still not referring to Bitcoin as to real currency. If it’s not a “real” currency, any regulations around traditional (fiat currency) online casinos should not be applied to Bitcoin gambling websites.
3) Despite the above, in countries where gambling is strictly prohibited, like the United States, the authorities may still take strong measures against Bitcoin gambling websites and/or gamblers who make wagers with Bitcoin.
4) Bitcoin gaming websites offer the benefit of increased anonymity to players. Bitcoin payments combined with anonymizing techniques like Tor make it extremely hard for the authorities to trace gamblers.
5) A few reputable gambling jurisdictions already issue licenses to casinos accepting Bitcoin (notably, Curacao and the United Kingdom), which means they accept the responsibility of controlling operation of cryptocurrency websites. As long as the online casino is following the rules and regulations of the chosen jurisdiction, it operates legally.
It is important to understand that a gambling license is absolutely necessary for an iGaming business to pass the application for a merchant bank account and to officially work with electronic payment systems.
When the casino website is working with Bitcoin, all of payment processing can be performed internally with no third party services involved that can control the crypto payment infrastructure. Deposits and withdrawals are transferred almost instantly and Bitcoins move directly between the player’s and the casino’s Bitcoin wallets. Thus, the necessity to present a gaming license to any financial institutions is eliminated. Therefore one could argue that when it comes to working with Bitcoin, a gambling license is optional or at least not a prerequisite to accepting payments.
On the other hand, a lot of players perceive a Bitcoin casino in the same way as any traditional online casino. They want to be sure that they bring their spare funds to a reputable and secure online environment and that their rights are protected by an independent authority. In this case, a valid gambling license from one of the gaming licensing jurisdictions becomes an important marketing tool that contributes to player loyalty and considerably increases the casino’s reputation.
Softbroke offers the Softmatrix igaming platform with sportsbook and casino and you may accept over 1000+ crypto currencies and launch your own online casino within48hours (workdays) with our solution.