Is Crypto Betting Legal?

Are you breaking the law by gambling with crypto?

Posted on July 6, 2021

Crypto betting (or crypto gambling) is a practice that is growing in popularity as time goes on. With the growth of cryptocurrency in general, new ways to bet and gamble are constantly evolving and emerging. But, there’s one key question people are asking: is crypto betting legal?

As you might already know, gambling as a whole is a massively restricted practice in most countries around the world. It doesn’t matter what your currency of choice is, if you’re gambling, you’re subjected to regulations and rules. There are age limits, monetary limitations, and laws that govern the ins and outs of gambling and betting.

But what about Crypto Betting?

Is Crypto Betting Legal?

It’s an all-important question, right? When you’re betting with cryptocurrency, you’ll want to make sure that you’re doing so within the confines of the law. As cryptocurrency is almost entirely unregulated by default, every scrap of information matters when it comes to safety and security.

The legality of crypto betting changes based on the country in question. There isn’t one straight answer for the question, as it changes from territory to territory.

For example, in 2016, the United Kingdom passed a law that permitted gambling license holders to accept crypto as payment for wagers and bets. They empowered UK-registered gambling bodies to enable their users to bet with cryptocurrency, and it was a considerable success.

There are still some concerns around the inherent anonymity of cryptocurrency transactions, but for now, the process works.

However, in the United States, the situation is a lot stricter, with the majority of the US jurisdictions prohibiting any kind of gambling. There are exceptions to this rule, such as in Nevada, the home of Las Vegas, but online gambling is still a tricky debate for the nation.

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Image Credit: BBC

How is Crypto Betting Different from Traditional Betting?

Essentially, there are no differences between crypto betting and traditional betting bar the actual currency used. Therefore, when we discuss the legality of crypto betting, the same rules often apply. For instance, in the territories that permit crypto betting, you’ll need to meet a specific minimum age to start gambling. This is true for both ‘fiat’ and cryptocurrencies.

It’s a little trickier to start out with crypto betting, as there are steps you need to follow ahead of actually placing bets. On the other hand, traditional fiat betting is much simpler to get involved with, as it often requires the simple steps of a) creating an account, and b) placing your bets.

As cryptocurrency is an entirely digital premise, there is also no way to physically gamble with crypto. While you can walk into a casino and start throwing down bets with cash and chips, this isn’t the case with cryptocurrency.

While the technology behind digital currency is advancing every day, there are still some limitations to the tangibility of crypto.

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Image Credit: Wallpaper Access

Will Crypto Betting Become More Legal in the Future?

As cryptocurrency becomes more accepted on a global basis, it’s easy to imagine that crypto betting will become more accepted by association. In some states, making a purchase with cryptocurrency is now a legal practice – and encouraged by some manufacturers and retailers.

There’s no secret around the fact that gambling, in general, is a popular pursuit. As crypto betting becomes more stable and widely accepted, people will no longer need to ask the question, “is crypto betting legal”, as they’ll already know the answer.

Watch this space – the future is coming ever closer, and it’s going to be a massively digital one.

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Image Credit: Vectra AI
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