Crypto gambling is new and has left many countries and regulators scrambling to come up with frameworks and regulations. In this article, weâre going to break down the key things you need to know about crypto gambling regulation and its impacts on the industry.
Is Crypto Gambling Legal?
Crypto gamblingâs legality depends on a countryâs specific laws. There are three distinct markets: white, black, and grey. White refers to markets where crypto gambling is regulated and fully legal. For example, if a crypto casino has successfully applied for a licence from the United Kingdom Gambling Commission, it can legally operate in the UK.
A black market is where there are specific regulations outlawing crypto gambling. For example, in the US, no state gaming authority licences crypto casinos and sites that accept US players are doing so illegally and can face fines and or jail time. However, itâs not illegal for US players to sign up. Crypto casinos that accept US players are typically based offshore and run anonymously to avoid being subject to US prosecution.
A gray market is where there are no specific laws relating to online gambling. Offshore crypto casinos operate freely in these countries and arenât under the threat of prosecution. An example of a gray market is India, which has no federal laws against online crypto gambling.
Itâs important to note that even if you sign up to an âillegalâ crypto casino, you are usually not legally responsible. Itâs only the site itself that is breaking any laws.
Who Regulates Crypto Gambling?
Crypto gambling is regulated by individual gaming authorities all over the world. The majority of gaming authorities do not give licences to crypto casinos. They either have created a framework yet, or there are concerns over cryptocurrency when it comes to anonymity and money laundering.
The biggest regulator of crypto casinos is the Curacao Gaming Authority. They have a fairly affordable and simple licensing process. Unfortunately, they have a reputation for being very lenient when it comes to handing out licences and offering minimal player protection. However, the big advantage of a crypto casino receiving a Curacao iGaming licence is they can get games from top providers like Microgaming, Evolution, NetEnt, and Pragmatic Play, which only partner with licensed sites.
The UKGC, which is considered the premier gaming authority in the world, also gives licences to crypto casinos, notably Stake.com. However, it is extremely difficult to receive a crypto casino licence because the UKGC has strict requirements when it comes to showing proof of funds and preventing money laundering.
The Malta Gaming Authority is another top-tier regulator that has recently licensed crypto casinos. They have taken a forward-thinking approach and embraced blockchain technology and cryptocurrencies, but at the same time, they have been cautious to ensure theyâre still protecting players.
What Do Gaming Authorities Do?
Gaming authorities are tasked with making sure a crypto casino is operating legally. They check that the casino has fair games from legitimate providers, and casinos have to get their RNG independently tested and show the evidence to the gaming authority.
Gaming authorities also take a keen interest in a crypto casinoâs financial health. They check that the site has enough capital to sustain the operation and is separating playersâ funds. Gaming authorities confirm that a casino is offering accurate bonuses and following responsible gambling practices like allowing players to self-exclude and conducting welfare checks on users who are exhibiting problem gambling behaviour.
Is Crypto Gambling Safe?
Crypto gambling is safe if you stick to licensed casinos with a long track record. We recommend looking for UKGC and MGA-licensed sites with games from well-known providers.
There is still a large percentage of crypto casinos that are unlicensed and operating in black and grey markets. These sites can be risky to play at because there is no gambling authority to check the site has fair games, is using the proper levels of encryption, and is offering real bonuses.
So there you have it: crypto gambling is no longer the Wild West that it was just a few years ago. The industry is slowly being regulated, and some of the top gambling authorities are licensing Bitcoin casinos. Have a browse around our site to learn more about crypto gambling, including the different games and bonuses you can enjoy!
