Is Bitcoin Gambling Legal?
Bitcoin gambling's legal status is a bit all over the place, depending on where you are. In the European Union, for instance, they're really leading the way in accepting cryptocurrency. Even so, there isn’t a full set of rules for crypto activities just yet. Malta (MGA) is a big name here, having passed some important blockchain laws like MDIA, ITAS, and most importantly, the Virtual Financial Assets (VFA).
On the other hand, the United Kingdom accepts Bitcoin as a store of value but has strict rules for crypto gambling. Casinos there have to jump through a few hoops to make sure everything's above board, which can be a bit of a hassle but is necessary to keep things legal. Of course, this regulation is covered by UKGC.
In Canada, it’s a bit of a mixed bag, too. When Canada set up its gambling rules, it didn’t talk about using crypto. There are no specific laws about it right now. This might sound good - fewer rules, more freedom, right? Not really. The lack of clear rules makes Bitcoin gambling a bit risky.
It’s best to stick with licensed casinos, but not all provinces have the right set of regulations about them. In these cases, players might use offshore or international sites that accept Canadians. This isn’t illegal per se (except when it comes to Ontario, which does have very strict rules and regulations), but gamblers must be careful and choose wisely.
Is Bitcoin Gambling Legal in the US?
In the United States, things get trickier. The rules for Bitcoin gambling can be pretty complicated, and they vary from state to state. Whether gambling at a Bitcoin casino in the USA is legal depends on the laws in each state, which also affects whether you can gamble with crypto.
Some states allow online casinos to operate freely. Here, we have Connecticut, Delaware, Michigan, Nevada, New Jersey, Pennsylvania, and West Virginia. In states like the District of Columbia and Florida, they allow gambling but do not accept crypto payment methods.
Some states, like Texas, forbid online gambling in completely. No matter which payment method you use, you still can’t gamble online legally in Texas. However, there are signs that Texas will allow sports betting in the future. The last attempt was in May 2023, with the HJR 102 Bill, but it didn’t pass senate votes.
Are Bitcoin Casinos Safe?
When it comes to Bitcoin casinos, safety can vary significantly. I mean, that’s the whole reason people wonder whether Bitcoin gambling is legal or not. New online casinos supporting BTC frequently enter the market, but there's a catch. Because cryptocurrency operates without central regulation, some new casinos operate without a license, and that can be a big problem.
If you think of it, gambling in a casino without a proper license, in 9 cases out of 10, is similar to gambling your money away (pun intended). Simply put, the casino is not obligated to pay you your winnings, and the fairness of the games is questionable as well.
However, reputable online casinos like BC.Game or Stake prioritizes its reputation with proper licensing (Curacao). Also, legal Bitcoin casino sites offer strong security and stability compared to traditional casinos. Transactions are conducted securely, and data remains anonymous, unlike in conventional casinos where financial and personal data may be vulnerable to breaches.
Risks of Gambling with Bitcoin
The main risks associated with Bitcoin gambling involve potential hacks and. However, these risks can be mitigated by using verified sites with SSL certificates or going for a VPN (Virtual Private Network) while playing.
Additionally, a significant risk is the temptation to overspend and gamble irresponsibly. It's important to always gamble within your means and practice responsible gambling habits.
How to Spot Legal Bitcoin Casinos
Since new online casinos are spawning like crazy these days, spotting legal platforms is not that easy. Everyone can leave fake reviews on sites such as Trustpilot, so there’s no reason to believe them if you didn’t check the basics.
Here’s what I always check to see if the casino is legal and worth playing at:
1. License and Regulation
The first thing I check when I see some new online casino is its licensing. I know that getting MGA, UKGC, and even Curacao licenses is hard for an operator. First, they have to abide by certain rules and regulations, plus they have to implement standards for gambling and payment policies. Most of these regulations depend on the regulatory body.
So, when a certain casino displays a Curacao license, for example, you can rest assured that it went through a lot of trouble getting it. On the other side, there’s an Isle of Man gambling license, which is usually associated with gambling scams and platforms that are not paying up winnings.
2. Quality of Bonuses
After checking for regulations and licenses, my next stop is the bonus section. Why? Well, it’s simple. If a casino gives a massive bonus with low wagering requirements, something fishy might be up. I like to be real when it comes to gambling, and I know that Bitcoin casinos give welcome bonuses as a way to attract new users.
Going with a standard 100% deposit match and some free spins on the side is a safe bet. However, if you see a better deal, that’s great. But, know that some casinos’ offers are too good to be true for a reason.
Let’s take BC.Game, for example here. This place has a 4-stage welcome bonus with 4 deposit increases, totaling up to 1080% bonus up to 220.000 BCD (1 BCD = 1 USDT). Now, that’s massive, right? But, the minimum deposit for the 4th deposit is $200, and the wagering requirements for all bonuses are set at 60x.
From this, we can see that BC.Game offers a great welcome bonus, but it’s hard to cash it out.
3. Game Quality and Software Providers
A legal Bitcoin casino should offer a wide selection of games, including slots, table games, and live dealer options. Great, but how does this differ from a catchy online casino? Well, it’s simple. Legal and reputable online casinos put a lot of work into getting well-known software developers and their games inside the casino.
Let’s take FortuneJack casino as an example here. This casino features over 3500 games and the number of software providers is quite high as well (40+). Plus, these are some really popular and licensed developers like Microgaming, Netent, Pragmatic Play, and Evoplay.
This shows that Cloudbet is putting a lot of effort into delivering fair and RNG-based games to its players.
4. Security Measures
The next thing I always check for is security and fairness. When the casino uses encryption technology like SSL to protect your personal and financial information, that’s a good sign. Plus, two-factor authentication (2FA) adds an extra layer of security.
Check the casino's privacy policy to understand how your data is being handled. Even legal Bitcoin casinos share your data, but only for commercial purposes (targeting you with ads about gambling). Here’s a good example of a legal Bitcoin casino that puts an accent on privacy - Stake.
5. Customer Support
Good customer support is crucial, no matter what. And, if you see anything shady in this department, that’s a bad sign. I know that some casinos don’t have a live chat, but their email responses should be on point. Plus, it doesn’t hurt to have phone support if you’re not offering live chat.
But, if the Bitcoin casino offers live chat customer support, that’s great. To evaluate if the casino is really looking after its players, simply ask them some questions about the site itself. I usually go with something like "What’s the maximum withdrawal" or "Do you have poker games".
Here’s how it went for me at Flush Casino. I waited only for 1 minute or so, the agent was polite and helpful. My "problem" was solved, and I could go back to gambling - that’s exactly what you’re looking for.
6. Reputation and Trust
Last but not least, you can check the casino's reputation. Look for positive reviews on Trustpilot or check the testimonials from other players on Reddit. Established casinos with a proven track record are typically more reliable.
Also, transparency is key, so ensure the casino provides clear terms and conditions and handles financial transactions efficiently. Having some certificates and displayed collaboration with well-known organizations is also a good sign.
When I see that a casino is working closely with BeGambleAware, it is always a good sign. And that’s exactly what Justbit Casino displays.
