Bitcoin Casinos Are Legal, But Check Local Regulations
People want to gamble. It is as basic a human desire as the desire for food or shelter. Some individuals don’t find an attractive to gambling in their life, but they are far and few between. Most engage in some form of gambling or another even if they don’t consider it to be gambling. As such, the question is often asked regarding the legality of Bitcoin casinos in the United States.
Bitcoin Takes Center Stage
To understand the concept of a Bitcoin casino one must first have a grip on what Bitcoin itself is. This is the first and still the most popular crypto-currency. That is a currency that is fully electronic and has no central authority governing it. It is bought and sold at all hours of the day and night, and it is accepted at many brick and mortar stores as well as via the Internet.
Bitcoin is viewed by its supporters as an excellent alternative to the fiat currencies that they likely hold in their wallets from their various governments around the world. Better to carry an electronic currency with no oversight agency than one that can easily be diluted in value on a whim based on decisions made by politicians in Washington.
Casinos Love Bitcoin And Want You To Use It
Let us make this plain and clear, there is no federal law in the United States that prohibits players from gambling on the Internet if they so choose. There are restrictions on casinos from accepting bets in the United States, and that is what makes it so difficult to wager in an online casino in the United States. The players are not the ones getting in trouble, but the casinos and even the financial institutions that they deal with can get in a world of trouble for accepting money known to be used for wagering.
Bitcoin has a special designation as a commodity and not a currency, and that keeps it out of rough waters legally speaking. It is still subjection to taxation, but it doesn’t have the same hurdles to get over that other forms of payment have.
The Traditional Banking System Is Barred From Wagering In The United States
The classic banking system is largely banned from processing wagers for players in the United States. This is because banks are not allowed to knowingly accept money that they know will be used for wagering or has been already. Thus, the cryptocurrencies have started to find their own “in” as it were with a lot of people. That is to say that they have a great way to encourage more people to use their product because they can at least allow those people to do the online gambling that they so desperately want to do.
The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006 and represents the government’s attempt at the time to crack down on gambling via the Internet. Prior to that law being passed, the Internet had plenty of gambling websites ready and willing to take your money. Some of these websites were honest players in the game, but many were not. The whole system was unregulated, and that left many players upset when they could not file official complaints or make any noise at all about possible cheating.
The law seems reasonable if its only goal was to crack down on casinos that would not play by the rules, but that was unfortunately not the only aim of the UIGEA. It also sought to bring down the whole gambling infrastructure as it existed in the United States and beyond. That was were a lot of loyal players had a real problem with what the government was doing. They felt that they were being attacked for simply wanting to play games that were perfectly legal in many parts of the world and even in some parts of the United States. Bitcoin casinos have taken that anger and given people an outlet to choose to funnel it.
Some States Have Attempted To Regulate Bitcoin
There are efforts ongoing in certain states to limit the use of Bitcoin for wagering purposes. These include California, Connecticut, New Hampshire, North Carolina, and Wisconsin. Each state has come up with their own forms of regulation on the cryptocurrency, but it is clear that each state legislature mentioned there is at least somewhat skeptical of putting too much power in the hands of those who have created Bitcoin. They want to maintain some control over the giant pool of money that exists in this world.
The interesting thing about this is that many of these states are feeling pressure not just from those who want to use Bitcoin but also from the fact that other states are gaining by allowing their citizens to use it. The tax dollars collected on this alone are enormous, and it is important to all states to collect those dollars to fund the programs that keep the states up and running as they should be. There is going to be considerable pressure from taxpayers to get with the program and start allowing Bitcoin casinos and casino gambling of all kinds into these states. The budgets are tight enough as it is.
Why People Love Bitcoin For Casinos Over Other Forms Of Payment
It is pretty clear at this point that Bitcoin is preferred to other forms of payment largely because it is practically hassle-free and allows for a person to remain anonymous when they conduct their casino business. Not everyone wants to let companies or other individuals know about their gambling habits and preferences. Bitcoin helps keep this a lot more anonymous and personalized as a result.
Players are safer when they use just Bitcoin to do their business, and the casinos prefer it as well. There is still plenty of room for growth for these cryptocurrencies as they try to gain a foothold in our culture, but they are definitely on the right path towards being more accepted and making a dent in the way we all do our business.