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by Mia Bassham on December 5, 2021

Which Countries Regulate Bitcoin Gambling and How?

Bitcoin Gambling is one of the most popular activities nowadays all around the world. In order for the online casino operator to operate, it needs to have a decent license that authorizes it to offer financial & gambling services to customers. Each country has its own Bitcoin gambling regulation regarding the gambling industry and you need to know the rules before starting playing, so you won’t get in any kind of trouble.

Having a license is also an important factor to gain trust among customers. The majority of experienced gamblers only choose platforms that are fully licensed and regulated, as they are going to trust them with their financial assets. Without it, there is a high chance that you are dealing with a fraudulent company that is a scammer and aims to steal your money. When Bitcoin Gambling is properly regulated in the country, it means that there is a reputable financial regulatory body. If something inconvenient happens (e.g company goes bankrupt, they steal your money) it will take all the necessary steps to protect you as a customer.

Bitcoin is generally legal in the majority of countries and customers can easily purchase and use them for different kinds of payments. However, when it comes to gambling, things might not look that easy as some Bitcoin gambling laws come into action. Basically, there are three kinds of market regulation, including Free Market, Partially Free Market, and Restricted Market. Let’s take a look at each of them.

Free Market Regulation

Countries that fall into the category of free-market regulation, are considered crypto-friendly, meaning that residents of such countries are not restricted from signing up with online platforms that offer casino services. Australia, Canada, and New Zealand are on the list of places where you can go and freely gamble without worrying about any negative legal consequences.

For instance, cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Litecoin, and others, are not considered as financial products in Australia. The main regulator of financial services in Australia is the Australian Securities and Investment Commission (also known as ASIC) which considers that cryptos do not need additional legislative obligations and regulatory requirements. That leaves the residents of Australia free to gamble on online casinos.

The same goes for New Zealand, as the gambling industry has been growing rapidly for the past few years in the country, and in fact, New Zealand was one of the first places where wages being paid in BTC was approved. What we are trying to say is that this country is super crypto-friendly and the only crypto gambling regulation that exists is that online gambling is permitted if the operator is located outside the country.

As for Canada, crypto regulations in the country are not strict, and players from here can freely use offshore gambling websites. All the major cryptocurrencies are allowed in the country, although they are not treated as legal tender. According to the Canada Revenue Agency (also known as CRA), cryptos are treated as property. Additionally, casinos based in Canada can freely register with international offshore crypto or fiat online casinos.

The main reason why these countries offer less strict crypto gambling laws compared to other countries is that online Bitcoin casinos are becoming extremely popular due to their benefits such as anonymity (nobody will be able to track down your transactions), transaction speed, and no additional commissions.

Partially Free Market Regulation

In countries with a partially free market, there are some regulations that might restrict several activities but it is still possible to gamble online with cryptos if one decides to do so. Countries, where bitcoin gambling is partially free are the USA, India, and South Africa.

There is not a specific answer to the question “Is Bitcoin gambling legal in the USA?”. There are no specific laws or regulations that explicitly prohibit crypto gambling websites in the USA from operating. However, there are not a lot of American BTC casinos that operate within the country, and each state can have its own regulations and decide how the gambling industry is going to be handled. While it is true that players from the USA don’t have access to local websites within the country, they can freely visit international offshore websites and start their gambling journey right away, as there are a lot of platforms accepting US players.

As it was in the case of the USA, there are specific regions in India that allow online casinos. The use of Bitcoin along with other cryptos is not prohibited – although the government was considering putting some restrictions, the popularity of the sector actually stopped them from doing so. There are 4 regions in India (Goa, Kerala, Sikkim, Daman) where gambling is considered legal. There also are some regions where specific types of games are allowed including lottery games, horse racing, and poker.

South Africa is another country where you will not be able to discover specific cryptocurrency gambling laws. Currently, cryptos are not considered legal tender, however, the majority of residents still use Bitcoin and other digital coins as their payment methods. It is also perfectly possible to visit offshore gambling websites and make deposits and withdrawals with your favorite crypto without facing any negative legal consequences.

Restricted Market Regulation

Unfortunately, there are some places in the world where gambling online is completely restricted. Malaysia and Nigeria are perfect examples of restricted market regulations.

For instance, if you get caught dealing with crypto exchanges in Malaysia, you will be subject to the country’s Anti-Money Laundering and treated as a reporting institution. Any crypto platform that wishes to operate within the borders of Malaysia needs to register with The Securities Commission Malaysia (also known as SC) – Generally, people are not allowed to use or offer any digital assets. It is pretty clear that the rules are very strict, however, one who wants to gamble online can still find ways to do so and we are going to discuss them later in the article.

Gambling in Nigeria is mostly considered illegal as the government regulates all the activities that might be related to not only online casinos but gambling in general. Chapter 22 of the Criminal Code restricts almost all gambling activities, except lottery and some specific card games. There are several land-based casinos that have a monopoly over casino games and legally run their facilities as the national government regulates them. It is also important to mention that the Nigerian Lottery Commission requires all casino operators to have licenses, otherwise, they won’t have the right to operate as an online casino.

How do Restricted Country Gamblers Play?

Considering the fact that the online space is filled with different kinds of online gambling websites, it is natural that most of them operate under specific kinds of licenses and regulations depending on the region they are in. As we already mentioned earlier, some BTC gamble laws restrict some people from accessing specific websites including bitcoin gambling platforms.

If you are located in a country where online gambling is restricted, you might not be able to use the services offered by an online casino. For instance, if you are from the USA, you might come across something like “No US Players Accepted”. However, there are some ways that players can use and still access gambling websites.

Using a VPN

People who live in those countries where gambling is considered illegal, use a VPN which helps them gain access to online gambling websites. With VPN, you have the ability to change your original IP address as the program hides your location and magically encrypts your internet connection. Because of that, others become almost unable to monitor or track down any of your online activities, including visiting a specific Bitcoin casino.

It is also important to note that most countries allow you to use VPN legally, however, as it was in the case of online gambling, the situation may differ depending on where you are located. We advise you to check things before you decide to use a specific service in order to access something that is considered illegal.

Without Anything

While it is true that some countries restrict companies from offering gambling services legally, it does not automatically mean that gamblers are also faced with negative legal consequences. To put it into a few words, some companies can still decide to operate their platforms in a country where it is illegal to do so, however, it’s up to them to decide if they want to risk it.

Cryptocurrencies

As you may already know, cryptocurrencies use a decentralized system and allow you to pay anonymously. It is a widely known fact among gamblers that BTC or other crypto-based casinos (no matter with or without a license) are always way more anonymous than the regular casinos, as long as you are not paying with fiat currencies (Visa, Mastercard, or e-wallets such as Skrill and Neteller). The main reason behind this fact is that when you pay with cryptos, you do not need to provide any sensitive information while paying with fiat requires you to provide the website with credit card info, and other personal information.

Casinos that have cryptos available as their payment method are a perfect choice if you are from a country where crypto gambling laws are strict – this will allow you to gamble privately without anyone tracking down your actions.

Currently, the gambling world is actually accelerating at a very high speed, meaning that people from all kinds of countries are looking for ways to play online with their desired currencies. We see that even if you are from a country where gambling is restricted, you can still visit online casinos and have a pleasant and enjoyable experience.

We hope that as time passes by, the gambling industry gets properly regulated everywhere and people from specific places of the world will not have to use VPN or some other illegal ways in order to bet online and access simple gambling platforms. Wherever you are located, we advise you to always go for websites that are fully licensed and regulated, so you don’t have to worry about money or privacy issues.

By Mia Bassham

Mia Bassham

Description: Mia is a freelance marketing adviser for international online casinos. Her knowledge and experience in what casinos want to showcase and hide help her find all the relevant information about brands that customers are always looking for.

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