Crypto is seen as being one of the most popular options to deposit at online gambling sites. But the truth is that it is already doing the rounds in the present as many dedicated crypto casinos have cropped up online.
But there remains a legal gray area about using crypto online for players. When things are taken to a global scale, the waters can get even muddier. UK players for example, will face different scenarios over crypto than players at crypto casino Philippines. Here is a look at the latest legal landscape.
Crypto Gambling in the USA
Only a small handful of states, such as Michigan and Pennsylvania, legally allow online casinos. For sports betting things are a little border with more than 20 states allowing online wagering to happen, but only within state borders.
The Federal Wire Act regulates online betting but was instituted in the 1960s and sets a general tone. It’s at the state level where the rules and regulations are more impactful, but none of them covers cryptocurrency specifically.
There are offshore cryptocurrency sites providing services to American players. In order for them to legally operate, they have to have licensing from the state in which they intend to operate. There are also internet platforms that operate outside US laws.
These unregulated platforms require very little to get registered and don’t go in-depth with checks and verifications on players, like regulated sites do. Playing with decentralized crypto on an unregulated platform is something that should be avoided.
Crypto Gambling in the Philippines
In the Philippines, crypto gambling is generally allowed, as there are no specific laws that either permit or ban it. This means that players can engage in crypto gambling without legal concerns, but in case of offshore gambling, it’s essential to choose platforms with valid licenses from established authorities like Malta and Curaçao.
Crypto Gambling in the UK
The UK has one of the broadest, yet most heavily regulated online gambling industries in the world, overseen by the UK Gambling commission. But still, the UK does not have any specific regulations for cryptocurrency gambling.
The UKGC has been on an information-gathering quest about crypto, focusing on player protection when using digital assets, and what guidelines a business should legally run under.
A recent review of the country’s Gambling Act did introduce newer, more stricter laws concerning online gambling. But there is nothing specific for cryptocurrency and like in all regions, access to unregulated offshore platforms is risky.
Crypto Gambling in Canada
Most provinces in Canada prohibit online gambling/betting, but there are no regulations over players using foreign websites. Ontario shook things up with their new iGaming scene that they launched in 2022 as they took autonomy over gambling within the province and set out guidelines, regulations and licensing for doing so.
All regulated operators in Ontario have the iGO logo displayed on their site, giving peace of mind that it is a closely monitored platform.
Crypto itself is legal in Canada, as users can trade, hold and sell the currency freely. So crypto gambling is possible within Canada, and as gambling isn’t a business transaction, Canadians aren’t taxed on winnings.
Crypto Gambling Around Europe
There are places in Europe that provide slightly more progressive views towards online gambling with crypto, but still within a heavily regulated framework. Malta for example was the first to regulate crypto casinos, while Germany followed suit by implementing very strict conditions in the Interstate Treaty on Gambling 2021.
Spain has pushed requirements for crypto casino platforms to obtain a specific license and while it doesn’t have any prohibitions on crypto, it doesn’t actively encourage play on crypto sites. Sweden’s licensing procedure does extend to crypto, but again, with very strict regulations.
Lack of Regulation
The fears about digital payments for betting is money laundering, as there isn’t the controls over crypto that there is on government-controlled fiat money like the US dollar. Because of this, it is always recommended to stick to regulated operators within your specific jurisdiction.
