The Role of Bitcoins in Online Gambling

The Role of Bitcoins in Online Gambling

Bitcoins are an unregulated digital currency that a handful of online casino players have embraced. Of all the online transactions in which they are used 50 to 60% of them are made at casinos. With very low transaction costs, Bitcoin use is gaining popularity.

Online gambling operators are encouraging gamblers to make Bitcoin deposits because they cannot be canceled. This makes chargeback fraud impossible, making online casino operators happy. Gamblers enjoy using this currency as much as online casinos enjoy them using it because when a gambler requests a withdrawal of their winnings they receive the money instantly.

For international gambling Bitcoins are a blessing to players because they don’t have to convert their deposit into a different currency for the casino. When gamblers frequent Bitcoin online casinos they receive more of their winnings than they would if they gambled at any Las Vegas casino with American currency.

The way Bitcoins work make it impossible for online casinos to rip off their members. The mathematical algorithm of a Bitcoin ensures that no casino can cheat their gamblers out of their winnings. Online casinos benefit from this digital currency because transactions are completed so quickly that it makes it easy for them to avoid breaking gambling laws.

One popular online Bitcoin casino game is SatoshiDice. This simple game involves rolling dice and selecting a number. Players must guess a number and if the number the game selects is lower than the number the player selected they win. The game is hosted overseas and in 2013 faced controversy when IP addresses from United States players were blocked. They did so because Internet gambling was not clearly defined in the U.S. at that time.

Due to this discrepancy, many Bitcoin users are uncomfortable with the U.S. Government’s thoughts concerning online gambling. Since state laws can’t always catch up with technology, Bitcoin users can gamble online without breaking the law; something that appeals to many. As of 2014, Nevada, perhaps the biggest state for gambling, had not passed a law stating that gambling online with Bitcoins could be done. At the time Nevada lawmakers had no desire to change the laws concerning gambling to include participating in the activity online.

While the Federal Government used to be able to hide behind the Wire Act, in 2012 federal law was changed so that the Wire Act could only be applied to online sites that allow sports betting; not online casinos that offer typical gamblers’ games. The Federal Government instead turned to the Illegal Gambling Business Act to support their stance towards online gambling. To this day the Federal Government does not have the ability to regulate any Bitcoin transactions.

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