Updated: January 2018
Is Bitcoin Gambling Legal?
A lot of discussion has taken place regarding issues brought up by gambling with Bitcoins. Most of these are legal issues regarding the fact that the law has not yet caught up with technology. Since Bitcoins are a digital currency anti –gambling laws that apply to online gambling are being skirted.
Is Bitcoin gambling legal?
The first thing people need to do is take a look at the individual gambling sites that accept Bitcoins for deposit. Many of these sites are still in operation, which means that legal issues are not stopping online casinos from taking Bitcoins and not stopping online gamblers from using them.
The bottom line is that sites that accept Bitcoins as payment are not getting shut down because the federal government has no control over the Bitcoin market. Since online gambling sites that accept Bitcoins aren’t breaking any U.S. laws the U.S. government cannot shut them down. This allows players in the U.S. to participate in online gambling without breaking the law.
The regulations concerning U.S. gambling laws don’t apply to Bitcoins, so people can still sell them to other people to use for online gambling. Players can exchange their own currency for Bitcoins that can be stored on their smartphone or their computer. In order to store Bitcoins people have to obtain a Bitcoin wallet for themselves. This system allows people to safely use Bitcoins for online gambling without the fear of whether or not they are breaking the law since at this point there is no law banning the use of Bitcoins for online gambling or anything else. Also you can visit bitocoin's most frequently asked questions page.
What makes Bitcoin gambling legal?
Until there is a law banning the use of gambling with Bitcoins no one can honestly state that it is illegal. A peer-to-peer network is used to carry out Bitcoin transactions. Since Bitcoins are a decentralized currency it is not possible to trace transactions made using Bitcoins. This makes it impossible to identify the people using them. Though Bitcoins are just a code stored in a computer they act like cash when used in a transaction. Since Bitcoins are not connected to a bank account no one who uses them can be accused of money laundering.
It is the reasons why Bitcoins are legal that those who run online gambling sites are attracted to them. Bitcoins have opened online gambling up residents of countries such as the U.S. which ban online gambling using the USD. The use of Bitcoins in online gambling sites means no one needs to love to a different country in order to participate in it. Bitcoins give people all over the world, and especially in the U.S., the freedom to gamble online legally. You can read more about this on a Bitcoin FAQ page.