The online gaming industry is the forerunner of innovation. If there is a breakthrough in technology, you can bet, the online gaming sector will be the first to adapt to it. And the newest addition is the blockchain technology. The blockchain is a peer-to-peer network of computers used to transfer data safely and securely. Cryptocurrencies and NFTs (Non-Fungible Tokens) are made and transacted on a blockchain, making it transparent and immutable.
For decades, casinos have been accused of unfair gaming practices to scam players. By incorporating blockchain technology and cryptocurrencies into the platform, online casinos have made gambling, foolproof. However, since cryptocurrencies and blockchain technology are still in their infant stages, there are no clear guidelines regarding their use. This ambiguity regarding the usage of cryptocurrencies has made it a confusing topic among gamblers. Are crypto casinos legal? Well, read along to find out.
What Is A Crypto Casino?
Crypto casino is essentially an online casino that operates under the blockchain technology. This allows the online casino to be transparent and provide a fair gaming experience. In a crypto casino, gamblers can make transactions and make bets using cryptocurrencies. Crypto casinos have advantages such as anonymity, privacy, safer transactions, low processing fees, and high security.
On the surface, crypto casinos look and feel like ordinary online casinos. However, crypto casinos employ blockchain technology to make the games fairer and the transactions faster and safer. Just like an ordinary online casino, everything is automated in crypto casinos. However, the chance for anything to malfunction is probably nil. Then, there’s the added security of decentralization, making online gambling anonymous.
Are Crypto Casinos Legal?
“Are crypto casinos legal in the USA?”, “Is crypto gambling legal in the UK?”, and “Is Bitcoin Gambling illegal in the US?”, are a few of the most googled topics regarding crypto casinos. Well, the short answer to all of it is, yes, crypto gambling is legal. However, it is a bit more complicated. No law prevents crypto gambling or crypto casinos from operating. Crypto gambling is allowed in regions where online gambling is allowed by law.
Since cryptocurrencies are decentralized and operate under the blockchain, no federal agencies can regulate them. Therefore, it is illegal in certain countries. In such countries, where online gambling is legal, crypto casinos cannot operate as cryptocurrencies are considered illegal.
The UK Gambling Commission made a notable mention regarding crypto casinos in recent days. The UKGC said that crypto casinos can operate as long as they follow the standard operating procedures of online casinos.
Are Crypto Casinos Licensed?
Yes, crypto casinos are licensed by the gambling license providers that audit and mete out gambling licenses to online casinos. This makes sure that crypto casinos operate at international gambling standards. All reputable gambling license providers like the Curaçao Gaming Control Board, the UK Gambling Commission, and the Malta Gambling Authority do confer gambling licenses to crypto casinos as long as they abide by the gambling laws.
Is Crypto Gambling Taxable?
While there are no laws exclusive to crypto gambling taxing in the US and other countries, the winnings from any online casino are liable to be taxed. Any income from an online casino will be taxed like an ordinary income from an e-commerce platform. While some countries accept crypto transactions, a few countries have imposed high taxes on crypto transactions.
In the UK, gambling winnings are not taxable. This law applies to crypto casinos as well, making the winnings free from taxes. However, the UK does have strict laws regarding currency conversion. As long as you withdraw the winnings in its original form, the winnings won’t be taxed. If your crypto winnings are withdrawn as fiat currencies, the conversion rates will be applied.
Are Crypto Casinos Safe And Legit?
Yes, crypto casino sites are safe and legit like every other licensed online casino site. Unlike online casinos, crypto casinos offer an additional layer of security in the form of blockchain technology, which makes the games and transactions transparent and immutable. The RNG in a crypto casino will be decentralized, making it fair and not susceptible to any bias. Additionally, licensed crypto casinos will have the latest SSL encryption and firewall systems to prevent intrusions.
The Bottom Line
Crypto casinos are the latest trends in the online gambling industry. These casinos are safer and fairer than normal online casinos, making them an ideal choice for crypto enthusiasts. Crypto casino games allow players to place bets in cryptocurrencies, making gambling more transparent. Since crypto transactions are safer and faster, crypto casinos ensure safe and faster payouts with very low processing fees.
The laws regarding crypto gambling are ambiguous. However, crypto casinos can operate in areas where online gambling is not prohibited by law. The winnings in crypto casinos are also taxable like regular winnings from a normal casino. What crypto casinos have to offer is the utmost privacy and anonymity. If you don’t like to disclose your identity and explore the realm of gambling, crypto casinos are the best choice for you.
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