Why the Smart Money Is On a Bitcoin Gambling Revolution
A change is going to come to the world of gambling, and it’s already on its way. If you want the inside track on just how digital currency is going to affect the way you bet, then our infographic will give you the lowdown.
The world of gambling is used to game-changing moments, as seemingly unbeatable hands suddenly become bad beats in the split-second of showdown. It has already experienced its first digital revolution when the 15 isolated online gambling sites of 1996 became a global community of 8 million players in just five years[i].
When we published this in 2014, the smart money said the wheels were in spin again, and that cryptocurrency would change how people pay for gambling. Some of that happened and some did not, as the note below the infographic explains.
Bitcoin’s winning ways
Bitcoin is a form of digital currency that is created and held electronically. It’s not minted, it’s mined. It’s also not issued by a central government or bank, but by lots of people running computers all over the globe. You can find out just how this decentralised, digital currency works below. And it really does work: Bitcoin has quickly established itself as a rival to traditional currencies, and a single coin overtook the price of an ounce of gold in November 2013.
What does all this mean for punters and pundits, casinos and croupiers, betters and bookies? Our layman’s guide will show you how Bitcoin works, and why people in 2014 thought it suited the world of online gambling, and Bitcoin sportsbooks in particular.
The arguments made at the time were:
- Low transaction costs and no currency conversion between players and sites
- The same payment method working across borders
- A wider reach for operators, which made it attractive to casinos
With hindsight, each needs a qualification. Bitcoin transfers do pay network fees, which rise when the network is busy. A payment that crosses borders easily does not change the gambling law where the player lives. And reach is only an advantage for an operator that is licensed to serve those players.
Our infographic, below, sets out the case as it was seen in 2014. Read it as a snapshot of that moment rather than as advice for today.
[i] https://www.uleth.ca/dspace/bitstream/handle/10133/422/internet?sequence=1
How Bitcoin Changed Online Gambling: A Note for Today
Bitcoin did not make conventional money a spent force in gambling. What it did produce was a large number of crypto-only gambling sites, many of them without a licence in the countries their players live in. Regulated markets went the other way: licensed operators follow their regulator’s payment and anti-money-laundering rules, and many of them accept no cryptocurrency at all.
If you are thinking of gambling with Bitcoin, the first step is to check whether a site is licensed by the gambling regulator in your own country. Most regulators publish a register, for example the UK Gambling Commission’s public register and the Malta Gaming Authority’s licensee register. A licensed site will verify who you are; the UK regulator says all online gambling businesses must check your age and identity before you gamble. At a site that is not licensed where you live, there is no regulator or dispute service if a withdrawal is refused, your self-exclusion does not apply, and a Bitcoin payment cannot be reversed.
You must be 18 or over to gamble, older in some countries. If gambling is causing problems for you or someone you know, Gambling Therapy offers free support online to anyone, wherever they live.
References
- UK Gambling Commission, public register of gambling businesses
- UK Gambling Commission, Age, ID and financial verification
- Malta Gaming Authority, Licensee Register
- Gambling Therapy
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