Where Gambling and Cryptocurrency Meet: How Regulations Differ Internationally

Throughout the world, traditional forms of gambling are enjoyed by the masses in a variety of ways. From local fights and races to casino-style establishments, finding opportunities to make a wager is fairly easy if you know where to look.

For many today, and even if traditional gambling options aren’t around, they need look no further than the internet. Online casinos can be found that serve virtually every country on the planet. In order to maximise the potential for profitability, many casinos allow players to pay via cryptocurrency.

But how do online gambling and cryptocurrency interact with one another in countries across the world? Let’s look at some of the regulations and how they differ.

Australia

Australia has had a varied history with the concept of cryptocurrency gambling. Originally outlawed in 2018, there have since been a variety of pokies that allow Australians to play online games and use cryptocurrency as payment. While not all online casinos in Australia allow the use of cryptocurrency, many of the best ones do. To learn more about these casinos, visit our website here.

United Kingdom

The laws regarding the use of cryptocurrency for online gambling in the United Kingdom are a bit more lax than other Commonwealth countries. A variety of online casinos and gambling platforms allow players to deposit cryptocurrencies and even be paid out in them. 

The UK Gambling Commission has made it clear that cryptocurrency in gambling is legal, but has warned players about the dangers of using less than reputable casino websites. 

United States

The United States has virtually no rules or regulations governing online casino use by its citizens, instead placing the regulatory burden on the casinos themselves. For the past several years, cryptocurrency has been regulated as a commodity by the Securities and Exchange Commission, which means it is legal to use in any gambling situation (however, profits earned from the use of cryptocurrency will be subject to taxation like any other form of income).

China

In the world’s largest country, gambling of any kind is considered an illegal activity. This includes domestic gambling operations as well as citizens playing via international casinos. However, there are many examples of these laws being ignored in China. 

While cryptocurrency is legal, its use in online gambling is non-existent under legal definitions. However, this doesn’t stop hundreds of billions of dollars from being funnelled out of the country in order to be used for international gambling purposes.

Japan

Japan has incredibly strict regulations governing the act of gambling at-large. Physical casinos weren’t allowed in the country until a 2018 law changed that (it can be argued that pachinko is a form of gambling that has existed for many years, but not strictly defined as such in Japan). Domestic online casinos are non-existent, meaning any gambling by Japanese citizens must occur via international platforms. 

As such, the use of cryptocurrency for gambling – due to separate regulations governing cryptocurrencies themselves – is generally non-existent in Japan.

With such a wide and varied assortment of national laws regarding cryptocurrency and gambling, it might be difficult to remember all of the exceptions. However, most countries do allow the use of cryptocurrency and also online gambling, which means you’re very likely to find an online casino in your country that takes this form of payment!

Written by Guest Author Dan Cormac

Dan Cormac knows how to make his money go further. A freelance financial journalist, Dan is passionate about personal finance. Whether you hope to escape the chains of debt, to save for a house, or to retire within a decade, Dan explores the most effective ways you can achieve your financial goals.