How Cryptocurrency gambling is regulated around the world ?
Find types of Crypto gambling with types, working mechanism, legality, country-regulations, ban, blocked gambling apps, scam & more !
Cryptocurrency sector is growing rapidly worldwide on the day-to-day basis with its new Blockchain-based Technology. Similarly Internet revolution, took place at the end of the 20th century & start of the 21st century. There are many advantages of crypto technology but there are some of the disadvantages as well. You may take Gambling as a part of the example, Where you put some money online to win more money. In the Crypto sector, it is known as cryptocurrency gambling. So, in this post, you will find Crypto Gambling around the world along with its types, legality, country-regulations, scams & many more things.
Introduction to Online Gambling vs Crypto Gambling
The concept of online gambling (or, Internet gambling or, Multiplayer online gambling) introduced in 1999 (aka Internet ages). This online gambling includes poker, casinos and sports betting that are connected to the real money. For example US Dollar, EURO etc. Similarly, Cryptocurrencies, coins, and tokens are connected to the gambling industry in the Crypto sector.
The difference between Online Gambling vs Crypto Gambling is that online gambling is operated by the group of people/company/individual, who own the rights to their firm, also we can say gambling operated in the way of centralized technology. But in the Crypto, these all gambling apps are being operated on Blockchain-based network, which is connected to a decentralized system (via decentralized app (Dapp) store).
Working Mechanism of Cryptocurrency Gambling along with Types, Regulations
There are two types/ways of Blockchain-based gambling, on-chain and off-chain.
Off-chain Cryptocurrency Gambling
Off-chain cryptocurrency gambling involves physical, online casinos and an internet casino account, which only accepts cryptocurrency, as a money deposit method. Mostly off-chain gambling websites accept Bitcoin (BTC), as a deposit method. Other currencies that are widely accepted are as; Ethreum (ETH), EOS, Litecoin (LTC), Tron (TRX) etc.
BitPay is a 3rd party custodian, which convert Bitcoin or another cryptocurrency to a local fiat currency. Generally, off-chain gambling apps uses these type of establishments via third-party services. Not only this, you may find the type of online casinos that purely operate without using any fiat currency. In fact, the payment is made in cryptocurrencies like Bitcoin.
On-chain Cryptocurrency Gambling
On-chain gambling runs on the blockchain-based systems, operate by smart contracts. It comprises a decentralized application (Dapp), which contains a backend code. That particular code is running on blockchain network instead of traditional centralized servers.
Now, It is much easier for high authorities and governments to find off-chain casinos and track their records. Crypto gambling website casinos usually ban IP addresses. So, as a result, they prevent access from certain countries. On the other hand, when govt. attempting to find/use on Bitcoin-accepting gaming sites likewise within the United States. They most likely be blocked the users from accessing.
For example, Tron’s refusal to show gambling dapps to Japanese users, is a part of decentralized or distributed methods of online gambling. And, that are not entirely immune to the effects of government regulation.
Regulations around the World including Legality and Ban
Talking about the online gambling regulations, Most of the countries have official regulations, only a handful of nations regulate crypto gambling. The countries include; United Kingdom, Greece, Poland, Italy, Netherlands and Belgium.
Top 10 Countries by gambling losses
Image Source - casino.org
Whereas on the other side, Many countries still in doubt to consider Bitcoin as a legal payment method. So, gambling is not allowed, even not in the frame. Japan is the most notable example, where the gambling industry exceeds that of Nevada by over $4 billion and is estimated to be $15.8 billion.
Global Gambling Industry: The House Always Wins
Image Source - casino.org
As always, stats are a matter of perspective, so when you look through the list of global gambling losses, you're also looking at the gambling wins for operators. With that in mind, here's a breakdown of the top 10 places for gambling revenue based on visitors.
After all these regulatory and technical challenges, Crypto adoption in casinos is successful. As of now, the world’s gambling industry is becoming increasingly friendly to cryptocurrency and its technology. Recent example is, Most popular and well-known Las Vegas establishments, that are going to accept Bitcoin and other cryptocurrencies. And, the similar trend will continue to establish in the future.