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Crypto Gambling In The USA – Outlawed Or Lawful

16 Jul 2019

Cryptocurrency is one of the most interesting phenomena of the 21st century. Bitcoin is considered to be the “Father” of all cryptocurrencies. It is the very first decentralized currency that allows people to make completely anonymous, safe, and extremely fast transactions. It’s pretty difficult to understand how Bitcoins appear and how the blockchain system works. No wonder the legal status of Bitcoin, as well as other cryptocurrencies, varies from country to country. Understanding that Bitcoin is going to the world currency, many countries recognize its importance and consider it to be a full-fledged currency. However, there are still some countries that banned Bitcoin or restricted it.

Is Cryptocurrency Gambling Legal in the US?

The United States does not have a unanimous legal approach to cryptocurrencies. Different states and federal authorities have different views on what “cryptocurrency” is. In order to understand whether crypto gambling is legal or not, it’s pretty essential to point out whether online gambling itself is legal in the US.

As weird as it is, such a huge democratic state as the US does not have a consistent view of online gambling. At a state level, online gambling is regulated by the UIGEA (Unlawful Internet Gambling Enforcement Act), according to which all online businesses are not allowed to receive money from people who are participating in any kind of online casino activities. On the other hand, online casinos are legalized in several states. These are Pennsylvania, New Jersey, and Delaware. In other words, if online gambling is prohibited in a certain state, it doesn’t matter what kind of payment options you use, as gambling is not legal by any means.

It is prohibited in the US to use banking options for gambling purposes. However, the legal status of Bitcoin gambling is not clarified yet so that many gambling operators are still offering Bitcoin gambling around the US. Though the Internal Revenue Service (IRS) is actually not concerned about those players who are getting paid out in Bitcoins and transfer their winnings to dollars, it is going after the Bitcoin gambling operators which offer their services in the states where online gambling is completely prohibited. Thus, several big Bitcoin websites were shut down a couple of years ago.

Anyway, crypto gambling remains a mysterious and “grey” field that is yet to be discovered and analyzed. For the time being, regular players may not bother about being followed by the government for playing with Bitcoin, but the situation may get changed at any moment.

Key Features of Cryptocurrency Gambling

Since Bitcoin gambling is a relatively new area, it has a lot of space for speculations and changes. That’s why it’s pretty important to understand several key features of this type of gambling:

  1. Cryptocurrency gambling is not officially allowed in the US and not prohibited at the same time.
  2. If the legal status of Bitcoin is not defined in the country, no traditional regulations should be applied to Bitcoin gambling.
  3. Since Bitcoin transactions are completely anonymous, the governments cannot keep track of those players who gamble with Bitcoin.
  4. Several world-famous regulatory bodies are already taking the responsibility of monitoring and controlling the Bitcoin gambling sites.
  5. The UK Gambling Commission and Curacao iGaming are issuing the licenses to the Bitcoin casinos.

Where Is Cryptocurrency Gambling Legalized in the US?

There aren’t any regulations which prohibit selling or buying Bitcoin. In fact, Bitcoin gambling is not targeted as an illegal activity, but each gambler should clarify whether online gambling is allowed in the place he lives in.

So, there are several states that are considered to be awesome places for the businesses operating with cryptocurrency. These include Texas, Tennesse, Montana, and Kansas. However, if you want to play in one of the best online casinos for US players, then you should be physically located in Pennsylvania, New Jersey, or Delaware. As for online poker, it is allowed in the previously-mentioned states plus Nevada.

As you can see, online gambling is legal in not so many states. On the bright side, more and more local governments consider the blockchain technology to be in the center of the gambling regulations. The use of the blockchain system will help to get rid off all the rogue and illegal operators and to ensure secure and instant transactions in the online casinos.

Source From : Coindoo News

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