Simply put, the term ‘casino Bitcoin’ can refer to online casinos or sports betting agents who accept Bitcoin in preference (or in addition to) fiat currencies.
In recent years, several large-scale Bitcoin casinos have emerged to offer lists of games and services created specifically for gamblers who want to transact in Bitcoin as opposed to fiat currencies such as the US Dollar.
Not only can Casino Bitcoin offer traditional, fair casinos such as roulette, but it can also offer sports-based bets, online lotteries or spread betting. Instead of using the terms Bitcoin or ‘BTC’, many Bitcoin casinos instead use the terms ‘mBTC’ or ‘millibitcoin’ – a term that denotes a thousandth of a Bitcoin, or 0.001 BTC.
Save for the process of transferring or ‘cashing in’ Bitcoin after a successful (or unsuccessful) bet, most Bitcoin casinos function the same as their ‘traditional’ counterparts.
For those who want to take risks, the Bitcoin casino usually provides a new registration with an internal wallet, where users can transfer Bitcoin.
Bets taken in a casino depend on the funds the user has saved when facilitating the game. Usually, users place an opening ‘bet’ from their wallet, and can lose or profit from that amount depending on their success in the game.
Some online casinos offer large ‘Bitcoin jackpots’, where users can win more than 500 BTC.
After the game is finished, any profits will be returned to the user’s in-house wallet. From there, users can direct transfers to their personal wallet whenever they want – however, most casinos apply a withdrawal limit to prevent users from withdrawing at once. It is good practice to fully read the online casino terms and conditions before playing.
Since Bitcoin emerged, the world’s leading cryptocurrency has been favored among internet casinos thanks to its pseudonym and ease of transfer.
For many of the same reasons that Bitcoin initially resonated with online black markets such as The Silk Road, online casinos have quickly moved to adopt cryptocurrency as their base currency to avoid regulatory demands.
Typically, Bitcoin casino sites have offered zero transaction fees with unlimited free daily transactions – differentiating themselves from their counterparts who still rely on fiat currencies.
In some cases, Bitcoin casinos continue to advertise bigger jackpots and large profits, given their operating margins can be much lower.
Some Bitcoin casinos have once again repeated the formulas offered by their ‘traditional’ partners, and have adapted some ‘standard’ games with new rules and procedures that – depending on the arrangement – may or may not be legal.
Perhaps the biggest contributing factor to the enduring popularity of the Bitcoin exchange is that each user’s profit or loss is not inherently taxed unless stated by legal authority.
Just like their wider online counterparts, Bitcoin casinos are usually in the legal ‘gray zone’ and the regulations or sanctions on these websites can differ from country to country.
Many online gambling sites pose difficulties for international regulators, given the fact that Bitcoin is not facilitated by central authorities and no transactions can be effectively disrupted or mitigated. However, several international regulators have issued a firm stand against the Bitcoin casino.
In particular, US citizens are prohibited from running Bitcoin casinos in their home regions – meaning many operations are combined elsewhere and only serve US citizens on request.
Some Bitcoin gambling sites allow new users to register under a pseudonym – meaning that new registrations do not usually require users to enter their real names or other forms of their identity. However, any legal authority can analyze Bitcoin transactions – and potentially identify their origin – through a chain analysis tool.
It is important to comply with any and all laws in your home area and only continue to bet online if you are legally permitted to do so.
In a way, the future of the Bitcoin casino might not fully involve Bitcoin.
While Bitcoin offers huge benefits to the gambling industry – specifically providing a way out of regulation, fast transfers, and pseudonyms – newer cryptocurrency might provide far more interesting benefits.
In the years since Bitcoin debuted on the world stage, several cryptocurrencies that focus on privacy have debuted which specifically anonymize transaction details and the parties involved. Cryptocurrency like Monero or Zcash could one day be widely adopted among casino sites thanks to their innate functionality.
In the end, other projects – such as Ethereum – might also offer very tempting benefits. Online casinos can one day implement smart contracts to regulate gambling activities such as deposits or payments – effectively ‘decentralizing’ some of the administration of daily tasks.