How do you Bet with Crypto?
Betting with crypto is a very simple process. All you need to do is have access to a crypto wallet and an account with a crypto betting site. As long as you have this then it’s just a case of signing up and betting on your favorite casino games or sports. Of course, if you’re not fully up to speed with how the crypto world works, then you can get some help with a crash course in crypto!
What are Crypto Betting Regulations?
Crypto betting regulations are the rules that are in place for how crypto betting is administered. Each country will have a different approach to how this is applied. For example, one country might allow crypto betting as long as the customer and their funds are identified. Another might completely ban all crypto betting. This is why it is important to check the specifics of your country in order to ensure that you are betting legally.
The USA is one of the most complex countries in the world when it comes to betting regulations. With 50 states, and Washington DC, all having their own rules about how gambling is allowed, it makes it very difficult to fully cover what is allowed in the USA. At this moment in time, more than half of the states allow online gambling to be carried out. So, whichever state you’re located in will have different regulations that have to be checked to ensure online gambling is allowed.
Crypto trading is legal within the USA as long as it’s with a regulated broker. It means that as long as the state you are in is regulated, and it offers crypto in line with those regulations, then crypto gambling is legal in the USA. It’s important to remember that winnings are taxed in the USA, with each state setting their own tax rate, so you will have to pay taxes on any winnings you make. As well as this, crypto earnings are taxed, so if your increased crypto holding also increases in value you will have to pay an additional tax on this. The tax rate is also calculated state by state.
Crypto betting in the UK is legal as long as the player is able to prove their identity and prove how they acquired their crypto. Once this is proven then the site is allowed to accept crypto as a payment method. There are no taxes on crypto winnings in the UK, but any gains from crypto does have a tax applied to it.
This means that if you win extra crypto you won’t have to pay any taxes. But, if you sell your crypto after there is a price increase, then you will have to pay taxes on any profits that you make.
Online and crypto gambling is a legal grey area for Canadian players. It’s no legal to gamble online in Canada at all. However, this doesn’t mean that Canadian players have to miss out. Players in Canada can play at offshore sites. This means that the regulation of the sites themselves isn’t as strict as in countries with focused regulation. Cryptocurrency is also outside of regulation at the moment, but that could change in the future.
Most Canadian players currently don’t have to pay any taxes on gambling winnings or on crypto profits. The only exception is players in Ontario, which applies a tax rate of between 5 and 13%. Professional players also have to pay income tax on any winnings.
Australia is extremely restrictive when it comes to crypto betting regulations. In fact, it’s very restrictive on any form of online gambling. While players can access offshore sites, most states have their own rules in place for how online gambling can be carried out.
The main issue when it comes to crypto betting is that the main regulator in Australia is currently making moves to try and ban betting with crypto. While it’s not been completely banned yet, it looks as though it could be likely in the near future.
Regulation and Anonymity
The main issue with playing at regulated crypto betting sites is that it often involves waiving anonymity. The UK is an excellent example of this. In order to bet with crypto in the UK you have to prove your crypto is legitimate and prove who you are. This removes some of the benefits of betting with crypto. As such, lots of players prefer to play at unregulated, offshore sites. This allows them to get the full benefits of crypto betting, but with a slightly higher risk.
Why does Crypto Betting Regulation Matter?
To put it very simply, crypto betting regulation matters because it makes sure there is accountability for crypto casinos. While the vast majority of crypto casinos would choose to behave in a moral and fair manner, without regulations there would be some that try to take advantage of players. Regulation means that there are rules in place that protect players and stop them from being exploited. But, why is it so important? What could casinos with bad intentions do to players?
Use Unfair Games
This is something that some sites would be happy to do. What these games do is change the mathematics that underpins how the game works. So, it will be predetermined instead of being random like fair casino games. It may also decrease the RTP or decrease the level of payouts.
Refuse to Pay Winnings
Without a regulator, there is no one to make sure that sites honor payouts. It means that some sites may refuse to pay out winnings, even if they are entirely legitimate.
Target Problem Gamblers
This is something that regulation comes down on hard. If a site doesn’t honor self-exclusions, then it means they will be fined by regulators. This doesn’t just mean stopping the player from being able to play, it also means removing them from mailing lists.
Should you Check Regulations?
The short answer is yes. You definitely should. Just because a site doesn’t have regulation in place, it doesn’t mean that it’s an unfair site. You can find sites that don’t have regulation that are completely fair and legitimate. However, if there is a regulator it means that there are certain aspects that it has to abide by.
So, if a site has a regulator in place it means that it’s instantly got a level of trust in place. You should always check reviews on top of looking at regulation, but when it comes to trust and safety, it’s always a good place to start.
Reviewed and Fact Checked by Vlad Hategan , NFT Gaming Specialist