Bitcoin Online Casino Licensing

bitcoin-slotsBitcoin is defined as a cryptocurrency and as such, it provides users with a lot of freedom as to when and where they can make payments via Bitcoin. Bitcoin is not recognised as a legal payment method in any country, which in fact, can be its biggest advantage. Basically, you do not process transactions with real money and no bank approval is needed for the transaction to complete. Using Bitcoin as a casino currency is absolutely possible although Bitcoin currently does not meet any definitions, regarding currencies.

Bitcoin is not regulated by a bank institution or a country authority. For the time being, the legislative matters are in limbo and therefore, there is a lot of room for speculations.

Online casino operators often encounter difficulties when it comes to providing their customers with the chance to use the cryptocurrency as a deposit method.

Top Rated Bitcoin Casinos
1

CasinoMax
$35min. deposit
$3000sign up bonus
2

BitStarz
$20min. deposit
$100sign up bonus
3

Slots.lv
$20min. deposit
$1000sign up bonus
4

Intertops
$20min. deposit
$100sign up bonus

Yet, operators can still offer Bitcoin without breaching the laws. There are no specific requirements regarding the licensed use of Bitcoin, but there are some guidelines, outlined below:

  • Bitcoin is neither legal, not prohibited online casino payment method.
  • Although more and more authorities start changing their attitude towards the cryptocurrency and accept the benefits it brings, most governments are still unlikely to regard Bitcoin as a real currency.
  • In some countries, known for having harsh laws towards online gambling, authorities make efforts for preventing players from placing a wager via Bitcoin, there is not a piece of legislation that casts light on the matter.
  • Bitcoin ensures a complete anonymity for players, which makes it impossible for authorities to figure out whether a player is located in a jurisdiction where online gambling is prohibited.
  • Some reputable gambling jurisdictions, including Curacao and Isle of Man, have already issued licenses to casinos that accept payments via BitCoin. Upon issuing a license, the licensing authority takes the responsibility of monitoring the operation of the websites it was issues a license to. In this respect, casinos that accept BitCoin and adhere to the regulations set by their gambling jurisdiction, are legal by definition.

Is it necessary for a Bitcoin casino to obtain a gambling license?

An online casino is required to apply for a gambling license in order to be legally allowed to process payments and use the gaming content of the biggest software providers. When payments are made via Bitcoin, that makes the involvement of a third party (bank institution) unnecessary. The amount a player would like to deposit/ withdraw is immediately transferred between the player and the casino wallet. In other words, the casino does not need to present a gambling license.

Casino players who decide to use Bitcoin as a deposit/withdrawal method have to make sure the online casino they have an account with is a reputable one and it has undergone an audit from an independent testing agency. From this perspective, a casino that holds a license from a respected jurisdiction becomes a powerful marketing tool and players are more confident when it comes to creating an account and depositing funds.

Since there is not a legislative framework outlining the rules and regulations related to Bitcoins, it should be assumed that wagering with the cryptocurrency is the same as wagering with any other government- accepted currency. In case the online casino accepts your local currency, it means it would not be illegal to deposit via Bitcoins.

bitcoin-online-casinos

Is casino gambling with Bitcoins prosecuted?

In most cases, individual players are not prosecuted for depositing funds via Bitcoin. Authorities’ aim is to make operators discontinue accepting Bitcoin as a payment method and as a result, they often conduct crackdowns on them instead of fining their clients.

However, some companies that have the right to provide gambling services on a global scale argue that they do not have to adhere to the laws of each country they have servers at, but only to the laws, established by the authorities that have issued them a license.

Tweet about this on Twitter
Twitter
Share on Facebook
Facebook
Share on Google+
Google+
Share on LinkedIn
Linkedin
Share on Reddit
Reddit