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Is Gambling With Cryptocurrency Actually Safe and Legal?

Posted on June 25, 2021 by Allen Brown

 

The legality of gambling in the United States is a concern for most people interested in betting on sports or playing online casino games. In addition, there are different laws in various parts of the country, which can make matters even more confusing.

When you add Bitcoin and other cryptocurrencies into the mix, it is understandable that many gambling enthusiasts in the U.S. may not be sure where they stand legally. 

Below is an explanation of cryptocurrency gambling and whether it is legal for you to add money into your online casino account using Bitcoin.

Unlawful Internet Gambling Enforcement Act

The UIGEA came into effect in the United States in 2006. The legislation states that a banking institution or credit card company can not push through transactions related to online gambling. These companies can facilitate consumer transactions for online betting or gambling if the state has specifically legalized online casinos. Unfortunately, this is only the case in some states in the U.S., which is why many people turn to Bitcoin and other cryptocurrencies in the hope of placing bets.

Bitcoin Gambling and Sports Betting

If you read about cryptocurrency gambling trends, you would know that Bitcoin gambling sites and other crypto-based sites have gained a considerable market share over the past 12 to 24 months.

The appeal of Bitcoin and similar currencies is that you are not using a centralized banking system to store and then spend money. In addition, Bitcoin transactions can be anonymous, which means that no one can trace who spent specific Bitcoins at a particular website.

While rules prohibit American-based casinos and sports betting sites from using Bitcoin to accept and send out payments, there are no specific rules that ban players from using cryptocurrencies to add money into their accounts at casinos.

Where is Bitcoin Gambling Entirely Legal?

People who live in states such as New Jersey, Nevada, and Delaware are in luck. You can visit online casinos and sports betting sites with government licenses, add money into your accounts using Bitcoin and other cryptocurrencies, and gamble to your heart’s content.

The issue is that if you live in any other state, you are not able to access American-based online casinos that would allow you to use Bitcoin for betting purposes.

How do people in the U.S. that live in gambling-unfriendly states place bets on sports games or play online casino games like poker and blackjack?

Bitcoin and Online Casinos Based Outside the United States

One of the most significant advantages of Bitcoin, after its anonymity, is that it helps pay people worldwide. 

Suppose a gambling enthusiast in a state like Texas or North Carolina wants to play online poker. In that case, they could find a legitimate website in a country where gambling is legal and online casinos can accept Bitcoin payments.

That person could create an account, enter in their details, and then exclusively use cryptocurrencies to add money into their account and then withdraw their winnings. Such transactions can be done within seconds, with the person converting their Bitcoin into U.S. Dollars should they wish to do so.

Am I In Danger If I Gamble Using Bitcoin?

The most common question people ask about betting using Bitcoin in the United States is: “could I go to jail or face heavy fines if I am caught betting with Bitcoin?” 

The answer is no. There is no risk to the player when using Bitcoin unless you spend your money at a shady website. A worst-case scenario involves adding money into their account at a disreputable website and losing all those Bitcoins.

Make sure you find reputable, safe websites that have stellar reviews in the gambling community. Then you can create an account, add money using Bitcoin and gamble safely. There is no need to feel nervous or scared, as there are no American states or the federal government targeting people who use Bitcoin to place online bets.

Win Money at Crypto-Casinos

There is no reason for any American to fear using Bitcoin or other cryptocurrencies at an online casino. So long as you are visiting the websites of reputable casinos, you can safely add money and withdraw your earnings. 

While American casinos cannot accept Bitcoin payments in most states, there are no laws in the U.S. that forbid citizens from using Bitcoin at offshore online casinos and sports betting sites.



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