Legality and Regulation of Crypto Casinos: Gambling Laws Explained
The use of cryptocurrencies is growing in various industries, and online gambling is no exception. Crypto casinos have quickly become popular, allowing players to make wagers in digital currencies such as Bitcoin, Ethereum, Litecoin and others. However, are they legal worldwide?
At Crypto Gamba, we have explored the legal landscape and regulatory framework for crypto casinos in key markets. Here's what we have found out.
Navigating Crypto Gambling Legal Landscape: Combination of Two Factors
When it comes to online gambling, we talk about the legality of this form of entertainment per se. However, crypto gambling involves more than that. Crypto-based casinos accept crypto assets which are not legal worldwide. For instance, a ban on cryptocurrencies was introduced in China in 2021, and it's here to stay. As a result, crypto casinos are outlawed in this country.
At the same time, the fact that the online gambling market is regulated in a particular jurisdiction doesn't necessarily mean that crypto casinos are also allowed. So, each jurisdiction treats this form of entertainment differently. To help you understand the legal status of crypto casinos, we'll take a closer look at some of the largest markets.
The United Kingdom
The UK is one of the first regulated iGaming markets in the world. The UK Gambling Commission issues licences to online casinos and oversees their operations. However, the UK legal framework doesn't recognise crypto casinos or explicitly address the use of cryptocurrencies for gambling. The main reason for such an ambiguous status is that crypto assets are not legal tender in the UK.
So, you won't find a regulated and UKGC-licensed online casino that accepts Bitcoin or other cryptocurrencies. If you still want to enjoy crypto gambling within the UK borders, you can do it on foreign platforms. Check out the new crypto casinos we recommend.
Canada
Canada regulates online gambling at the provincial level, so the legal landscape varies depending on the region. However, no specific regulation governs the use of cryptocurrencies at online casinos.
Therefore, crypto gambling in Canada is still a legal grey area. Like in the UK, Canadian players who want to play online casino games with virtual currencies can turn to offshore platforms.
The United States
The US has probably the most complex legal landscape when it comes to online casinos, with gambling laws varying from state to state. Currently, this form of entertainment is legal in several states, including New Jersey, Michigan and Delaware, to name a few.
Crypto casinos operate in a legal grey area, with no laws addressing the use of crypto assets for gambling. Moreover, many offshore crypto casinos prevent US players from joining them. In this case, you must use a VPN to access a crypto-based gambling platform.
Other Jurisdictions
While most countries have not regulated the use of cryptocurrencies for online gambling, a few jurisdictions issue licences to crypto-friendly casinos. Here is an overview of the noteworthy examples.
Curacao
Most crypto casinos, including those featured on our website, are licensed in Curacao. This jurisdiction is popular among crypto casino operators because of its relatively relaxed regulatory framework and low licensing fees.
Curacao-licensed crypto casino sites are frowned upon by many due to the lack of stringent oversight. However, that doesn't mean these gambling platforms can't be trusted. On the contrary, the ones we've selected for you guarantee a safe, fair and transparent gaming experience.
Malta
Malta, a well-known online gambling hub, has emerged as one of the most crypto-friendly jurisdictions in the world. It has developed a comprehensive regulatory framework for businesses operating in cryptocurrencies, including those in the iGaming sector.
Crypto casinos established in Malta must be licensed by the Malta Gaming Authority (MGA), a local regulatory body considered one of the most trustworthy in the world. All MGA-licensed crypto casinos must comply with rigorous anti-money laundering (AML) and Know Your Customer (KYC) regulations.
Estonia
Although it's not as popular as Curacao and Malta, Estonia is another jurisdiction that has embraced blockchain technology and virtual currencies. The country boasts a clear legal framework for crypto-based businesses, including online casinos.
In Estonia, crypto casinos are allowed to operate under the same licenses as traditional gambling sites. Hence, it is one of the most progressive countries in terms of regulating crypto gambling.
Closing Thoughts
Although crypto casinos have taken the online gambling industry by storm, legal frameworks addressing them across the globe still lag behind. Only a few jurisdictions keep pace with new trends in the industry, while the rest still need to work on laws that would regulate the new form of online gambling.
With the growing popularity of cryptocurrencies, we expect more jurisdictions to adopt regulatory measures. These would ensure that crypto casinos operate transparently and provide players with a safe and fair gaming experience.
As a player, you must stay informed about the legal landscape in your region. The good news is that in most countries, players are not prohibited from joining offshore casino sites. In some cases, you may need to use a VPN to avoid geo-blocking, though.
Whether you need a VPN or not, always choose only trusted crypto gambling platforms, like the ones vetted by our team.
Marija Misita
Crypto Expert
Thanks to her journalism background, Marija has a methodical approach to writing about crypto casinos. With years of experience in research and analysis, she aims to provide clear insights into the world of crypto and online gaming and the points where they intersect. Whether discussing industry trends, regulatory changes or game mechanics, accuracy is her top priority.
