Bitcoin casinos are gaining popularity as they allow gamblers to play anonymously and enjoy high-speed transactions. However, operators willing to open online Bitcoin casinos may be confused by the coin’s legal status, and start questioning whether the Bitcoin gambling is legal or not. Let’s analyse the Bitcoin online casino, its need for a license and where Bitcoin gambling is legal.
Bitcoin Gambling Legality
First, it is important to note that no specific laws are prohibiting or allowing Bitcoin gambling. No country directly says that playing slots, roulettes, poker or other games using Bitcoin is illegal. Also, no country establishes specific rules regulating Bitcoin gambling. Therefore, the legality of gambling using Bitcoin depends on two factors:
- the legal status of Bitcoin in a particular country;
- the legal status of online gambling in a specific country.
Countries where online gambling is illegal or restricted:
- Australia: it is illegal to provide online gambling services to residents of Australia.
- China: online or land-based gambling is not allowed.
- India: online gambling is an immature industry without specific regulations.
- Israel: providing online gambling services to Israeli residents is illegal.
- Malaysia: online gambling operators are not allowed to offer services to Malaysians.
- Turkey: online gambling is illegal in Turkey.
- US: online gambling legislation varies in different states and keeps changing.
As for the legal status of Bitcoin, using a cryptocurrency is allowed in all the countries where the gambling market is developed and attractive. Today, Bitcoin is legal in 111 countries. It is banned in such countries as Afghanistan, Algeria, Bangladesh, Bolivia, Pakistan, Qatar, Republic of Macedonia, Saudi Arabia, Vanuatu, and Vietnam.
In other cases, if online gambling is allowed by the specific country’s laws and using Bitcoin is not prohibited, offering Bitcoin online casinos is legal.
Do Bitcoin online casinos need licenses?
Online gambling licenses are needed in order to process payments using bank accounts. In the case of Bitcoin casinos, bank approvals of money transactions are not required as no third party interference is needed in cryptocurrency payments.
However, an online gambling license is still needed as the popular and leading game providers require it. They are unlikely to cooperate with a casino without a reliable gambling license. Moreover, online casinos with licenses attract more players as users perceive such gambling platforms as dependable and trustworthy. Although Bitcoin guarantees secure payments by its nature, players still want to be sure that a casino operates honestly and will pay money in case of wins.
Operators should pay attention to the legal status of Bitcoin and gambling in chosen countries before providing their services. However, today, it does not cause troubles as the cryptocurrency is legal on the largest and profitable gambling markets which attract both starting and experienced operators. Therefore, starting a Bitcoin online casino will not be complicated.