Cryptocurrency gambling is the latest trend globally now, and it looks like it has come to stay. It’s simply the use of cryptocurrencies in the funding of gambling platforms instead of fiat tender. You might want to ask how it works, and the answer is a pretty straightforward one; it could either be on-chain or off-chain.
On-chain cryptocurrency gambling involves smart contracts that are made up of decentralized applications on a blockchain; these applications tend to have backend codes operating on a blockchain network rather than the orthodox centralized servers we are used to. Off-chain cryptocurrency gambling, on the other hand, has to do with online as well as physical casinos accepting cryptocurrencies into a virtual casino account.
Why is bitcoin used on casino platforms?
The flexibility that comes with using bitcoin and other cryptocurrencies as a payment option has made it become a popular option amongst so many people who play slots. So many online platforms have found a way to incorporate its use to their platforms, and the gambling industry isn’t an exception. Bitcoin gambling casino is springing up daily, and these casinos have started to adopt the bitcoin payment method to enhance user experience.
However, the only cog in the wheels of this innovation seems to be the regulations being carried out by different countries on the subject matter. It’s become quite common to see prompts on a list of casino sites showing you a warning that says you have been denied access or that your country doesn’t support your participation. These prompts are simply due to regulations put in place by the government for their disposition towards the use of bitcoin as a payment method.
How governments regulate cryptocurrency gambling?
Most government agencies resort to the traditional method of regulating online gambling, which involves banning the website’s IP address. However, this method of regulation is much easier to implement on off-chain cryptocurrency gambling platforms as these platforms have a centralized system. Users on off-chain platforms can maneuver the ban by simply rerouting their IP addresses through virtual servers in regions that are not affected.
Banning the websites on-chain casinos is way more tedious as the platform is decentralized, and this translates to a network that isn’t bound by a static IP address. Rather, the platform is jointly hosted by various computers stationed in different parts of the world. It is easy to see why so many countries do not regulate cryptocurrency gambling.
Countries where cryptocurrency gambling is being regulated
Countries like Italy, Poland, Greece, Belgium, and the United Kingdom regulate cryptocurrency gambling. So many countries do not support the use of bitcoin as a means of legal payment under their regulations. In countries where bitcoin isn’t accepted as a legal means of payment, the restriction extends to the use of bitcoin in gambling.
The United Kingdom gambling commission allows the use of bitcoin in gambling so far one can adhere to all of the existing gambling laws. There are a couple of sports betting sites in the UK that accept the use of cryptocurrency with proper regulation being done by UK gambling regulators. In Japan, the existing strict gambling rule established in the country also applies to the use of cryptocurrency. Still, there seem to be gradual changes with recent developments in the country.
Conclusively, Cryptocurrency gambling is regulated in different manners across the world, and it is one area that polarizes opinions. Truly, one cannot blame countries that have not bought into the idea of accepting cryptocurrencies as standard means of trading. However, there’s a possibility that many of those countries will eventually buy the idea of cryptocurrency gambling due to the burgeoning growth of the sector.