Crypto gambling is on the rise, with the industry raking in around $80 billion in 2024. With numbers like that, you have to wonder – are crypto casinos legal?
Well, the answer isn’t as cut and dry as you would like it to be. This is because crypto gambling legality can change from one place to another. But don’t worry! In this post, we’re going to:
- Explain crypto casino legality
- Describe how crypto casinos can become legal
- Show you where crypto casinos are legal
And more! Let’s take a look at all things related to crypto casino laws!
Are Crypto Casinos Legal? The Confusion About Laws
If you’re feeling unclear about whether crypto casinos are legal or not, you’re not the only one! There is actually a lot of confusion about the legal aspects of crypto gambling.
Why is this?
Well, it largely has to do with the fact that cryptocurrency isn’t fully regulated. For one thing, federal agencies aren’t quite sure how to classify crypto. Some see it as a commodity while others describe it as a security. It is sometimes even described as a digital asset.
Also, many countries are a bit wary of crypto and haven’t embraced it. Due to this, they haven’t created laws to regulate crypto.
To add to this, the decentralized nature of crypto casinos makes them borderless. They can have players from all over the world. This makes it difficult to know which country the casinos should be licensed in!
Are There Legal Crypto Casinos?
OK, it is clear that there are lots of barriers for crypto casinos. Are any of the crypto casinos actually licensed, then?
Yes, some crypto casinos are licensed. They have managed to get licenses from:
- Countries that are open to online casinos and gambling
- Regions that have relaxed or definitive laws for cryptocurrency
Here is a breakdown of the regions that will provide a crypto casino license:
Costa Rica
Crypto casinos can’t get a gambling license, but they can be licensed as a company. The process is pretty easy for casinos. The only issue is that these casinos can’t offer their services to Costa Rican residents.
Curaçao
This is one of the most popular places for crypto casinos to get a license from. This is because the process is fairly low-cost and rather quick, too.
Anjouan (Comoros)
This is a newer addition to the list. The country has a more affordable license available to small casino operators.
Malta
This is a pretty popular country for crypto casino owners. A Malta license is more expensive and difficult to get. But it has the benefit of a good reputation and clear regulatory guidelines.
Isle of Man
Isle of Man is quite open to both casinos as well as the use of cryptocurrency. This makes it the perfect place for crypto casinos to get licensed.
How Are Crypto Casinos Legalized?
Now, let’s take a look at how crypto casinos can become legalized. Get a better understanding of the rules, regulations, and proper operating practices:
Gain Licensing
The first step involves gaining a license. This can be done from one of the territories above.
There is no denying that a licensed crypto casino is automatically trustworthy. But this doesn’t mean that you should steer clear of a platform that doesn’t have a license.
As we’ve discussed above, crypto casino legality is tricky. It can be difficult for these sites to get a license.
And, this doesn’t have anything to do with strict licensing processes. Instead, it is simply because governments don’t know how to regulate these casinos.
Due to this, you shouldn’t dismiss casinos that don’t have a license. How do you know the good from the bad unlicensed crypto casinos? Well, we’re going to get into that in greater detail in a few sections!
KYC and AML Compliance
To get a license, crypto casinos have to meet certain requirements. Two of the most important criteria involved:
- Know Your Customer (KYC)
- Anti-Money Laundering (AML)
KYC Monitoring
Know your customer is exactly what it sounds like! These are details that crypto casinos have to get from their players. This includes name, age, email address, etc.
The purpose of this is to make sure that the person signing up has a proper identity. Casinos use this to prevent fraud and guarantee that all players are 18+.
AML Practices
There is a chance for money laundering activities to take place across crypto sites. This is why crypto casinos that want a license must prove that they are taking steps to avoid this.
They often have to:
- Conduct customer due diligence and get verifiable IDs for each player
- Keep up-to-date and accurate records
- Track unusual betting practices
- Report suspicious activity
Where Are Crypto Casinos Legal? Global Crypto Casino Laws by Region
Let’s take a look at how the different regions around the world react to crypto casinos:
North America
The United States
The legal status of crypto casinos varies from one state to another. Many of the casinos do operate in a form of legal grey zone, though.
Canada
Gambling is regulated by provinces in Canada. Crypto casinos aren’t banned in Canada, but they aren’t acknowledged either. Due to this, the casinos are in a grey area here, too. As a result, many Canadian players use offshore crypto casinos.
Europe
UK
Crypto casinos can operate within the UK. But they have to first receive approval from the United Kingdom Gambling Commission.
Malta, Gibraltar, Isle of Man
These are all countries where players can visit and use crypto casinos without any issue.
Asia
At the time of writing, crypto casinos can’t legally operate in any Asian country.
Australia
There aren’t specific laws for crypto casinos. The government has mentioned that players can use crypto to place wagers.
Potential Legal Risks of Unregulated Crypto Casinos
As we’ve already mentioned, you shouldn’t dismiss all unregulated crypto casinos. There are many unlicensed casinos that offer excellent services to players.
Of course, not all unregulated crypto casinos are created alike. Here are some of the issues that can crop up with untrustworthy sites:
Financial Fraud and Scams
Here is the biggest concern with unlicensed sites: scam crypto gambling. There is always a chance that criminals will set up fake crypto casino platforms. Instead of offering games or winnings, though, they steal players’ crypto.
These sites can allow criminals to get their hands on sensitive information. This could result in identity theft.
No Legal Protection for Players
The other problem is that players have nowhere to turn to if they encounter a scam or issue. If a crypto casino is unlicensed, there is no regulatory body monitoring it. This means that players can’t file cases against the casino if something does go wrong.
Risk of Breaching National Laws
Unregulated crypto casinos don’t have to follow rules. This means that they can break the law by illegally offering their services to players. And, by accepting these services, you may actually end up breaking the law.
How to Play Safely and Legally at a Crypto Casino
Here are some tips you can follow to ensure that you stay safe and secure on any crypto casino:
Check the Local Laws
The first thing you should do is check the laws in your area about crypto gambling. Check if:
- Online gambling is allowed
- Gambling with cryptocurrency is legal
- They license crypto casinos
Of course, all that really matters is that online gambling and crypto are allowed in your country. Even if there are no local sites, you can still play on a foreign one.
Use Reputable Platforms
Choosing a licensed crypto casino is your best option. If you can’t find one, though, it is time to do research. Look for platforms with a good reputation and a good community standing.
Read through reviews and check online forums to see if these sites are the right fit for you.
Focus on Sites with USDT
You should choose crypto casino sites that use USDT or Tether.
Why?
Well, one of the reasons that crypto is hard to regulate is that it fluctuates so much. USDT, though, is a stablecoin. It is pegged to the US dollar, and it doesn’t vary that much.
A crypto casino that offers USDT gives you more playing stability. You don’t have to worry that your winnings are going to lose value overnight!
Looking for Responsible Gambling Practices
Last, but definitely not least, look for crypto responsible gaming practices. These are sites that offer support for players who suffer from addiction.
The practices give you the chance to limit your spending or even impose a self-ban. This can make it easier for you to treat your disease in time.
Wrapping Up: Are Crypto Casinos Legal?
We’ve been on quite a ride with this topic! So, what have we learned?
Well, crypto casinos can be legal as long as they are licensed. But the licensing process can be quite tricky.
This is because there aren’t too many laws for crypto or crypto casinos. As a result, it can be difficult to find regulated crypto casino platforms.
The good news for you is that we have included a quick guide. This will make it easier to figure out which casino you should sign up for.
Well, then, what are you waiting for? Why not sign up for a crypto casino and see how much you can win today!
FAQs
Some crypto casinos have licenses while others do not. The complex legal landscape makes it difficult for many sites to get their license.
Crypto casinos are perfectly safe as long as you choose a licensed or reputable site. It is important to do your research and choose a well-known crypto casino platform.
This does depend on which region you are in. There are several places around the world that let you gamble with cryptocurrency.