Is Bitcoin Gambling Legal?

The legality of gambling with Bitcoin is determined by where you live, who you are and what you are doing with your Bitcoin. The currency itself is regulated in different ways depending on the particular country where the transaction takes place. The Bitcoins usually do not affect the legality of the gambling practices. For example, if it is illegal to perform a certain form of gambling in a particular country, it will continue to be illegal when performed using Bitcoins. However, some countries have exceptions to these rules.

Simply Owning And Using Bitcoins Is Usually Legal

Those who simply hold onto or use Bitcoins for goods and services are using them legally. As for those who creating Bitcoins and exchanging them for currency or those who own Bitcoin exchanges are classified as owning a money transmitting business. This indicates that you may be subjected to U.S. regulations related to the act of transferring money. However, it can be difficult to regulate a piece of computer code that is not hard money.

Authorities Have Unique Concerns Regarding Bitcoins

One of the concerns about Bitcoin for authorities is how it is able to be used anonymously. This allows for the coin to be used for illegal gambling. Also, Bitcoin has been used to circumvent some laws.

Bitcoins Fall Under The Same Rules As Online Casinos

Some bitcoin casinos are legal. If a bitcoin casino is operated in the same manner as a traditional casino, it will fall under the same laws as if it is a traditional casino. There are no federal laws against online gambling. However, there are some state laws prohibiting the practice. Prosecution against players themselves is rare.

Online And Offline Bitcoin Gambling Can Have Different Legal Status

Bitcoins may be legal to use for online gambling since some countries allow online gambling, while placing restrictions or banning offline gambling. In the United States, it is illegal to transfer money from online gambling sites to banks. However, there are still some online gambling websites that offer services in the United States.

Gambling Can Be Legal Depending On How It’s Licensed

Gambling can be legal depending on how it is licensed. For example, while gambling is regulated for most Americans, it is not regulated for those who are members of Native American tribes. Gambling has remained legal on Native American reservations. However, there has been some controversy when those who were a part of Native American tribes attempted to run casinos that were not specifically on Native American land. A Bitcoin alternative has also been developed that has been used by the Lakota Native American tribes.

The Bitcoin Industry Has Proactively Regulate Itself

The Bitcoin industry has responded proactively by creating their own regulatory bodies such as DATA. The Bitcoin foundation has founded committees that exist to drive policy, communicate with regulators and provide legal assistance to those who are involved with the Bitcoin community.

Another complication is the legality of Bitcoins themselves. They have been banned in a few countries. As a result, those who live in a country that does not allow Bitcoins cannot gamble with them. There are some countries that have not decided on what they will do with the currency and there are others that have already banned the currency outright. Bangladesh has banned the currency out of concerns that it did not have a central payment system. China does allow Bitcoins, and has one of the largest Bitcoin markets in the world, but there is a Bitcoin ban that strictly affects banks. Other countries like Ecuador have banned Bitcoin because they are creating their own electronic currency systems and do not wish to compete.

Bitcoins Are Sometimes Seen As A Commodity

There are some countries that do not view Bitcoins as a currency, but instead view them as a commodity. This may lead to Bitcoin casinos being legal in that particular country that normally would not allow gambling. The participants receive the Bitcoin credits and can later cash them in for real cash perfectly legally.

Gambling Websites Have Their Own Rules

In addition to the legal requirements of Bitcoin gambling, the websites have their own rules that you are expected to follow. It is important to be informed about these rules before you begin using these services. There are also different terms and conditions. For instance, there might be some websites that will not accept players from a particular country. There are also usually age limits that affect who can play.

Though you may think that it is legal to gamble using Bitcoin, it never hurts to consult with an attorney if you are concerned with whether you have broken the law. Even if you have broken the law, an attorney will provide you with advice regarding how you can have the charges reduced or dismissed.

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