While authorities of most countries are still debating over crypto gambling and its regulation, some nations have already taken firm steps towards its acceptance.
For example, Venezuela has made a U-turn in its attitude to online gambling. It has switched from the total ban to the legalization of the first crypto casino. It will be a brick-and-mortar casino, where gamblers can play for Petro (PTR) only, the state’s crypto. There are no details yet as to which coins will be accepted as a means of exchange for PTR. Presumably, it will be Bitcoin, Litecoin, and Dash. Moreover, the proceeds from this casino will be spent on the public health and education sectors. For now, it seems like a really significant step, doesn’t it? Still, it remains to be seen whether this idea can boost the crypto gambling industry in Venezuela.
But what about the rest of the globe?
The global scale of crypto betting
There are no specific laws that regulate gambling with cryptocurrencies. It’s neither prohibited nor officially allowed. It’s tough for any government to introduce a comprehensive legal framework because this issue requires adopting numerous laws, instructing law enforcement agencies, and controlling gambling activities.
Essentially, the legality of crypto gambling worldwide depends on two key factors: the legal status of virtual currencies and the legality of online gambling.
When it comes to the attitude to Bitcoin and other cryptocurrencies, it changes rather rapidly. In most cases, Bitcoin is treated positively. Now, more countries start developing regulations for crypto-related services. Still, most authorities neither perceive Bitcoin as a real currency nor classify it as legal tender. This means that cryptocurrencies can’t be used as a legal payment method in gambling, but it’s not prohibited. As you can see, it remains a huge grey area without clear and comprehensive regulations.
In terms of gambling, most countries have already come up with official laws for online gambling. While there are only a few nations who have crypto gambling legislation in place. Let’s take a closer look at them.
Europe
Europe is a significant contributor to the industry as a whole, and crypto gaming in particular. This is the region where strict online casino regulations are introduced. Following the tight rules applied to traditional fiat casinos, a few countries including the Netherlands, Italy, Greece, Belgium, Poland, and the UK are the ones who have developed clear regulations for casinos accepting virtual currency deposits.
Licensing online casinos that allow players to gamble with crypto coins is a huge step forward. Currently, there are three European-based gambling authorities (in Malta, UK, and Curacao) issue licenses to crypto casinos.
The UK
The British gambling market is full of casinos and betting services that accept payments in Bitcoin and popular altcoins. All crypto-oriented operators must comply with the current gambling regulations in the UK. Plus, they are required to pay high tax rates.
Betting is the most popular activity for millions of regular gamblers. Since this market is growing rapidly, many casino operators start offering sports betting with crypto. Yet, the legality of these services is ambiguous.
The UK gambling authority has started licensing crypto casinos, but only a few Bitcoin gambling platforms hold a license from them. In this regard, they have a warning on their site against untrustworthy platforms.
The USA
Land-based casinos in Las Vegas started to support crypto payments. However, the regulatory landscape in the US is very intricate. Some states allow gambling online, but this mostly relates to betting services. Online casino houses have little support so far.
The whole industry is under close scrutiny of the US government. So, the chances of cryptocurrencies entering the gambling market on legal grounds are small.
Asia & crypto: a tough relationship
Most Asian countries prohibit gambling, as well as cryptocurrencies. India is on the way to completely ban crypto. China has a love-hate relationship with cryptocurrencies, while gambling activities are strictly prohibited here.
Japan is the most crypto-friendly country that had started implementing regulations for virtual currencies before the rest of the world did. As for gambling, this is a new sector for the country and it isn’t as perfectly regulated. Only 2 years ago, Japan enacted a law allowing the operation of physical casinos. Now, they intend to introduce regulations for the crypto gambling sector as they understand that it enjoys much popularity.
Future of crypto casinos
Crypto payment options are much more advanced than those offered by traditional banking services. Fast transactions, low fees, and the efficiency of crypto payments attract both operators and players.
Still, some national authorities tend to focus on risks more than on the benefits that cryptocurrency can offer to the online gaming industry. Different countries have their own vision of digital coins and online gambling. And most of them regulate these two sectors separately. Still, we believe that soon the majority of countries will allow crypto betting and will be forced to regulate it in the most efficient way.
