After the huge expansion of blockchain technology, many casinos started adopting popular cryptocurrencies like Bitcoin. This means that now, you can use digital currencies in the gambling process and deposit, bet, and withdraw cryptocurrencies.
However, as popular cryptocurrencies grew to trillion-dollar market caps, governments all around the world have started to look for a way to regulate the entire process.
The thing with Bitcoin and other popular currencies is that it is a decentralized system that runs on a Blockchain network scattered across many computers. In other words, it is virtually impossible for a country to ban Bitcoin or any other cryptocurrencies since players can always buy them if the network is running.
This brings us to the next question. Are crypto gambling websites allowed in the USA?
With the rise in popularity of cryptocurrencies, online casinos started adopting this technology and offering crypto gambling. But is the process legal and are you able to gamble with cryptocurrencies in the United States?
Are Bitcoin or Other Crypto-Currencies Legal?
Bitcoin is one of the first digital currencies that emerged back in 2009, and back then not many people knew about this revolutionary technology. Even now as Bitcoin and other cryptocurrencies have become more mainstream, people still have some questions regards to the legalities of cryptocurrencies, especially when it comes to gambling in the United States.
Is Bitcoin Legal?
With the current state of the media, it is hard to know for sure the clear rules and regulations surrounding this new blockchain technology. However, the short answer to this question is YES.
Bitcoin is legally recognized tender in the United States, and now laws or regulations can prohibit you from purchasing, owning, or trading with any form of cryptocurrency, unless you make some illegal transactions on the Black Market.
Bitcoin is considered an asset and it is also taxable. Therefore, people that have money investing in Bitcoin or any other cryptocurrencies are obligated to pay taxes.
But what does this mean for online gambling using cryptocurrencies? Does this mean this process is also legal?
Online Gambling Using Cryptocurrencies
Well, in order to find out whether or not you are allowed to gamble using cryptocurrencies, we have to step away and look at the broad online gambling market in the United States. Unfortunately, there isn’t a clear answer to this question.
The laws about online gambling and not only different from state to state, but also the type of gambling may vary.
For example, if we take the capital city of gambling – Las Vegas, Nevada, we can see that online poker and sports betting is allowed, however, full online casino is not. On the other hand, you have Pennsylvania, Delaware, and New Jersey where online gambling is completely legal, and there are many popular casinos to choose from.
The laws and regulations regarding the online gambling industry are constantly changing and more states are softening their regulations due to the huge money potential that comes from online gambling.
So, what does this mean for crypto Casinos?
Well, the current regulations in the United States do not specify whether or not crypto gambling is legal. This means that even though gambling with Bitcoin isn’t prohibited, the regulations are still in the grey area and not clear.
Some states classify all gambling as illegal, including Bitcoin and other crypto transactions made on online gambling websites. Others do not have strict policies regarding crypto gambling, but since they allow online gambling, crypto gambling should also be legal.
Since the United States still hasn’t clear regulations toward crypto gambling, some of the biggest crypto gambling websites simply prohibit US players rather than dealing with the red tape.
How to Know If you Can Gamble With Cryptocurrencies?
Even though most governments cannot ban or restrict you from gambling with cryptocurrencies since it is a decentralized network, it is best if you check your local laws and regulations before investing some money into the process just to avoid getting in trouble.
Despite the fact that crypto casinos are still not regulated in the U.S, it is safe to assume that they are legal in states where online gambling is also legal. Additionally, since Bitcoin is also legal in the United States and is considered an asset, you won’t get into trouble if you play from a state where online gambling activities are allowed.
So, before choosing your favorite online crypto casino, make sure to check your local laws and regulations regarding online gambling. As crypto casinos start to emerge more and more into the public, maybe some of that states will step in and clarify whether or not this process is legal.
Until then, we can only assume that if online gambling is allowed in a certain state, that means that crypto gambling is also legal.