Bitcoin is not regulated by a banking institution or a government authority. And so, for now, there is a lot of room for speculation.
However, new Bitcoin casinos can use cryptocurrencies without breaking any laws. There are no specific requirements regarding the licensed use of Bitcoin, however there are some guidelines:
- Although more and more authorities are beginning to change their attitude towards cryptocurrencies, by accepting their benefits, it is still unlikely that most governments will consider Bitcoin as a real currency.
- In some countries, known for having tough laws regarding online gambling, the authorities make efforts to prevent players from placing bets using Bitcoin, however there is no legislation on the matter.
- Bitcoin guarantees anonymity to players, which makes it impossible for authorities to find out if a player is located in a jurisdiction where online gambling is banned.
- Some reputable gambling jurisdictions, including Curaçao and the Isle of Man, issue licenses for casinos with payments through Bitcoin. When issuing the licence, the licensing authority takes responsibility for monitoring the operation of the sites for which it has been issued. Thus, casinos that accept Bitcoin and stick to the regulations set by their gaming jurisdiction are legal by definition.
Is it required for a Bitcoin casino to get a gaming license?
When the casino only accepts Bitcoin payments, all payment processing can be done internally with no third party services involved. Deposits and withdrawals are transferred almost instantly and Bitcoin coins move directly between the player’s wallet and the casino’s Bitcoin wallet. In that way, the need to provide a gaming license to any financial institution is eliminated. Thus, one could argue that when it comes to gambling with Bitcoin, a gambling license is optional or at least not a prerequisite for accepting payments.
On the other hand, many players take on a Bitcoin casino in the same way as any traditional online casino. Thus they want to be sure that they transfer their funds to a reputable and safe online casino and that their rights are protected by an independent authority. In this case, a valid gaming license from one of the gaming licensing jurisdictions becomes an important marketing and player protection tool, which contributes to player loyalty and considerably increases the casino’s reputation.
The personal safety of customers should be the priority of a Bitcoin casino, and so players need to be sure they are playing on a trustworthy site where their data is protected.
Since there is no legislative framework that defines the rules and regulations related to Bitcoins, it should be assumed that gambling with the cryptocurrency is the same as gambling with any other currency accepted by the government.