For the first time in the online gambling history in Britain, United Kingdom Gambling Commission (UKGC) announced Bitcoin as the equivalent to cash. According to the regulatory board for gambling of the country, the people of United Kingdom can alternatively use Bitcoin for online gambling. However, they have restricted the transaction to only casinos that are licensed in the United Kingdom.

What changes UKGC made?
Before Bitcoin was accepted as an alternative payment method, the other available cash equivalents were cheques, banker’s drafts, debit and credit cards. To avail this facility to British citizens for online gambling, they have made changes to License condition 5.1.1 of the “License Conditions and Codes of Practice” by including this digital currency to their accepted payment options. It is expected to come into effect by October 31, 2016.

Advantages of Using Bitcoin in Casinos

The alternative currency has been popular to the gamblers over the years because it’s easy to deposit and withdraw, easy to transfer and use a strong, secure platform. With these new changes by the UKGC, the new gamblers will courage to spend their Bitcoin on online gambling sites. Moreover, they will get some level of protection from UKGC.

How it will effect on the Gambling Industry

According to the UKGC amendment, the protection to the gambler is only limited to the sites that are licensed in the UK. The gambling sited who want to use Bitcoin as their alternative digital currency should be listed to the regulatory commission. So, this will not only provide the protection to the players, it will also encourage the sites outside of the UK to get a license there.

Limitation
As of the UKGC regulation, the players can only use Bitcoin for companies that are licensed in the United Kingdom. The sites should get approval from the commission as well. The companies that are already using Bitcoin are currently licensed to Curacao and any protection for the players are regulated by their country’s regulatory or gaming commission.

Use of Bitcoin will increase
Allowing Bitcoin as equivalent to cash not only encourage users to spend more on online casinos but also acknowledge Bitcoin as a trusted source for the financial transaction. This acknowledgment will certainly increase the status of Bitcoin as a financial instrument. Moreover, the number of the enlisted gambling company in the UK will increase, and the government will get more revenue from them. According to the recent statistics, since June 2016, a total of 719 online casinos registered to over 427 online casino operators. It is anticipated that the number will dramatically increase due to the recent changes. The online gambling companies that only use Bitcoin as their digital currency and were enlisted in Curacao will soon migrate to the UK to expand their business.