Why Should US Operators Start Accepting Bitcoin?
BTC gambling is facing a lot of challenges across the globe but the good news is the world’s gambling industry is becoming friendlier to cryptocurrencies.
Cryptocurrencies have a lot of use cases when it comes to faster and more reliable payments, transactions, and more. Some of the top use cases for cryptocurrencies are Bitcoin casinos, Bitcoin sports betting and Bitcoin eSports betting.
Looking at the numbers, the global gambling industry is not doing bad at all with its market size reaching a value of around $449.3 billion in 2018 and it is expected to reach nearly $565.4 billion by 2022 (Business Wire).
Bitcoin gambling was one of the first applications of Blockchain after the Bitcoin whitepaper by Satoshi Nakamoto in 2009 was seen by the world. The launch of BTC was at a time when US regulations went after online casinos one Black Friday. This event went in history as the poker’s “Black Friday”. The digital currency is still seen as a good way to avoid regulations and third-parties between players and platforms around the world. Cryptocurrencies such as BTC and Ethereum are seen to become mainstream until 2025 with hopes of specialists for that happening this year.
Of course, there are certain rules and regulations that go hand in hand with all types of gambling and currencies, especially BTC. We are going to explore regulations within the US and the rest of the world and we are going to go through each of them in hopes to shine a light on safe and legal gambling.
US Regulations
There are no federal laws that prohibit US citizens from gambling online but there are limitations that prohibit US operators from accepting BTC or other cryptocurrencies on the territory of the US. However, there is no law in place that forbids players from making wagers. This means that offshore online casinos can accept bets from US citizens without them breaking the law. When it comes to BTC and cryptocurrencies in general, such digital currencies don’t have the same status like fiat currencies but people who earn profit from them still have to pay taxes.
One last thing on the topic of US regulations is the UIGEA (the Unlawful Internet Gambling Enforcement Act) that restricts banks to deal with online casinos which makes BTC perfect for online casino transactions. Not only this but BTC gambling offers a great deal of games and features of an online casino with great graphics.
Let’s go quickly through a list of US states that impose limitations on using BTC, some where BTC is just illegal, and some that pinpoint BTC as legal:
California
California has had a great deal of attempts to regulate BTC and those who start businesses that profit from BTC are going to pay a lot of money compared to other states, so using BTC in California is quite uncommon.
Connecticut
In Connecticut businesses have to have a license before accepting and storing BTC, otherwise they will have to pay a fine. Of course, using other online casinos for gambling is fine but these measures lead to not many people wanting to open a Connecticut online casino.
New Hampshire
In New Hampshire businesses owners and players have to have a license just for transferring cryptocurrencies and the government is only planning of making BTC usage harder and harder.
North Carolina
Cryptos are seen as forms of payment in this state but regulations are placed very strictly. It is allowed to trade BTC by registering federally but businesses cannot use cryptos as easy as they expect.
Wisconsin
In Wisconsin a money transmitter license is needed for companies that operate within the state. This license is canceled if the company has anything to do with crypto. There are no clear laws on using BTC but the aforementioned rules are enough to state that Wisconsin is not a crypto-friendly state.
States Where Online Gaming Is Illegal
Now we are moving on to states that completely ban the use of BTC for gambling within their territory. This means that accessing BTC casinos based in other places is completely fine.
- Alaska, Kentucky, Oregon (illegal)
- Maryland, Indiana, Massachusetts, and New York (they allow betting facilities but not online casinos)
States Where Gambling is Completely Legal
There are a few states where playing at online casinos is completely okay. The first one that legalized online gambling was Delaware in 2012, then Nevada, and New Jersey with Pennsylvania following up in 2017.
Based on how many US states react negatively to BTC gambling, there is a need for US operators to start accepting cryptocurrencies, as US gamblers are forced to take their money offshore and spend it in foreign online casinos. With a few adjustments of the rules and regulations around the gambling industry, adding cryptocurrencies as a payment option would reel in players from all around the United States to bet with local operators. These changes can boost the American gambling industry and statistics will skyrocket by providing players a safe and transparent payment method to their favorite casinos.
After we did a little check on how the USA is handling BTC and gambling together, we might pop over to the rest of the world and see how BTC gambling is accepted.
Just a friendly reminder: whether betting online is legal or in need of special licenses, you should always educate yourself and be cautious on legislations and tax laws in states where the government is considering cryptocurrencies.
https://www.bestbitcoincasino.com/news/why-should-us-operators-start-accepting-bitcoin/
Where are you based and have you already used crypto for gambling / betting?