Is Ethereum Gambling Legal? You Bet It Is!
The rate of online casinos and sportsbooks specializing purely in cryptocurrency deposits and withdrawals is growing at an unprecedented rate. The benefits of anonymous accounts, transparent gaming outcomes and ultra-fast withdrawals has led to a strong appetite for what the blockchain gambling industry can offer.
However, there is often a concern from those sitting on the fence regarding the legal status of Ethereum casinos. Therefore, we thought we would clear the mist. In our ‘Is Ethereum Gambling Legal?” article we will briefly begin by discussing why Ethereum casinos are so popular. After that, we will then break down the legality of such operations. By the end of reading it, you will have a firm understanding that Ethereum gambling is 100% legal.
What is Ethereum gambling and why is it so popular?
Online gambling is a multi-billion dollar industry – with literally thousands of casinos and sportsbooks each competing with one another to attract as much business as possible. Since the introduction of cryptocurrencies and blockchain technology, the tide is slowly but surely turning, with Ethereum operators now leading the way.
First and foremost, when players join an Ethereum casino, they are not required to enter any personal information other than an email address. Moreover, when depositing ETH in to their newly created account, the funds arrive within 30 seconds.
At this stage of the end-to-end gambling experience the player is already benefiting from the blockchain revolution, because if they were using a fiat currency casino, they would need to supply a full range of personal information. Under the laws on anti-money laundering regulations, fiat casinos must collect a significant amount of information from the player, such as their full name and address, as well as their nationality and date of birth.
Consumers don’t agree with such practices – and rightly so. You wouldn’t have to identify yourself when shopping at your local supermarket or drinking at your local bar, so why should you have to do it when gambling online?
A further reason why Ethereum casinos are so popular is that house-edges are usually far lower than traditional casinos. As mainstream operators deal with fiat money, they have to install various safeguards such as risk departments and anti-fraud officers – which of course is a strain of financial resources.
As a result, they then pass these costs off in the form of increased house-edges. On the contrary, Ethereum gambling sites do not engage in such practices, meaning that they are able to offer the player more competitive odds.
Finally – and potentially the most attractive factor to Ethereum gambling is with regards to the withdrawal process. Going back to fiat casinos, the player has no choice but to upload a range of documents to verify their identity.
This usually includes a passport and bank statement at an absolute minimum, however it can also include additional content such as a copy of the player’s debit card.
In stark contrast, cryptocurrency casinos ask for nothing from the player. As soon as the player requests a withdrawal, their ETH is normally receive back in their Ethereum wallet within a few minutes.
The entire process is automated, which correlates to the fundamentals of the underlying Ethereum blockchain technology.
Ultimately, it is these benefits that have made Ethereum casinos and sportsbooks the go-to place for online gambling. So now that you know why the industry is thriving, let’s take a look at the golden question – ‘Is Ethereum Gambling Legal?”
Is Ethereum Gambling Legal?
Throughout the world, online gambling is a highly regulated space. As we briefly touched on early, when casinos deal with fiat currencies such as USD or EUR, they must adhere to certain regulatory demands. Moreover, in order to offer gambling services online, these platforms must be in receipt of a full gaming license.
If operators do not comply with the rules and regulations of their respective license issuer, then they face the risk of having it revoked. However, as determined in various nations such as the U.S., Canada and Australia, as well as the hugely influential European Union – cryptocurrencies such as Bitcoin, Ethereum and others are not classified as real-world money.
As a result, transactions involving cryptocurrencies are able to operate without governmental interference. Satoshi Nakamoto – the anonymous creator of Bitcoin, would be proud.
This has opened up the doors on a global basis for a number of reasons. Certain jurisdictions such as Thailand, China and even the U.S. have taken a strong stance on online gambling and as such, often block access at a domain level. Ethereum casinos on the other hand do not discriminate against a player’s nationality, allow people to deposit and gamble without interference.
When talking about ‘Is Ethereum Gambling Legal’, it is also important to understand that each and every transaction is anonymous. You will never be required to supply any personal information, nor will you ever have to upload any documents. Moreover, to further protect your privacy, you can also access an Ethereum blockchain casino through a VPN program such as TOR. This will obscure your true location, rendering governmental restrictions useless.
The most interesting thing is that although Ethereum casinos do not need to be regulated to offer their services, many still go through the process to show their customers they are a legitimate operator. This adds a range of safeguards to the player, without compromising on their anonymous capabilities. The best blockchain gambling websites are those that are in receipt of a gambling license, so always look out for this.
Conclusion – Is Ethereum Gambling Legal?
As we have now ascertained, Ethereum gambling is 100% legal. The fundamental fact is that cryptocurrencies and fiat currencies are two different kettles of fish. Although nations are slowly introducing cryptocurrency specific legislation, it will be long time before we see anything substantial – especially regarding online casinos. As a result, by depositing, staking and withdrawing Ethereum at a crypto-specific casino, you are in full compliance of the law.
So Now that you know the answer to ‘Is Ethereum Gambling Legal?” – If you are interested in exploring the best Ethereum platforms, take a look at our impartial recommendations. We have narrowed down the Wild West of crypto gambling to just five casinos and four sportsbooks. Nobody else quite made the cut.