When Bitcoin first came into the picture of digital currency, few people understood it. As its popularity has grown, more and more people still have questions about it. Many people question its legalities, especially when it comes to gambling in the USA. Bitcoin Gambling have covered this in detail, as well as individual casino reviews such as Safedice and Yolodice. Read on for more.
Bitcoin Legalities in the USA
With media stories and coverage, it’s hard to understand the rules and regulations governing cryptocurrencies like Bitcoin. Amidst all the confusion surrounding the use of Bitcoin, at least it is a recognized tender in the United States. However, it is illegal to use Bitcoin to purchase black market goods such as drugs.
More to this, your Bitcoin account could risk closure if you buy legal goods from websites known to sell illegal goods too. This shows that as much as it is an accepted tender, it is still under strict regulations on where to use it.
When it comes to gambling, the story is different. This is because current regulations in the United States do not specifically say that Bitcoin is illegal. That means that Bitcoin casinos are not entirely restricted, but they are not clean either. Surprisingly, some states classify gambling as illegal regardless of whether Bitcoin is involved or not.
States that have legalized gambling make millions of dollars from the legalized casinos. This is because they get a cut from websites that choose to use Bitcoin as a betting option. This is a win-win situation for the states and the Bitcoin users too. However, the process is pretty complicated, not forgetting the age restriction in place as far as gambling in the US is concerned.
Why Bitcoin Gambling
Gambling, for a very long time, has been known to be tedious and complicated. With Bitcoin gambling, the process is easier and straightforward. Under the current regulations, you only need to deposit money from your bank account or debit card and register with your government card to gamble. This is only for the legalized states in the USA.
Some gambling websites only allow cashouts in person and only at specified locations in specific cities. Bitcoin bypasses all these processes. If you have some, you just need to send it to the website wallet, and your money is credited to your account in a short time. This depends on the speed of the website.
The same case applies to cashing out. You do not need to drive to a cashout point to get your money. You just request a withdrawal, and the money goes back to your wallet. More to this, Bitcoin allows you to stay anonymous if you prefer to stay private while gambling. You just need to choose a username or get one at random.
With these benefits, regulating bitcoin gambling becomes challenging, not forgetting how hard it can be to track these websites. This is why some states save themselves the hassle and prohibit Bitcoin gambling as a whole.
US States where Bitcoin Gambling is Illegal
Bitcoin is not illegal in most US states. But, there are some states where things are not as simple when it comes to Bitcoin gambling. Therefore, it is important to check if the state you are in allows Bitcoin gambling; otherwise, you risk losses. Here are the states where Bitcoin gambling is illegal.
California
In California, the use of Bitcoin is not entirely illegal or prohibited. But, there are constant attempts to regulate Bitcoin in California. In fact, setting up a business that would benefit from cryptocurrencies is much more expensive than other states. This is to discourage any business promoting the use of cryptocurrencies, including online gambling sites
Connecticut
If you are planning to start any business in Connecticut, you will need to acquire a license first before accepting and storing Bitcoin. Without this, you can face some serious fine that you can avoid in the first place. While players in Connecticut can gamble online using Bitcoin, not many entrepreneurs are willing to open a Connecticut-based casino.
New Hampshire
All matters regarding Bitcoin are hard in this state. It is hard not only for casino owners but also for gamblers and those who want to use Bitcoin for anything in New Hampshire. You will need to obtain a special license to transfer any crypto coins. As if that is not enough, the state government plans on making it tougher to use Bitcoin in the state.
Wisconsin
Any company in Wisconsin requires a money transmitter’s license. However, if the company performs any transaction with cryptocurrency, the license will be canceled by the state. There are no clear laws governing Bitcoin use, but this license cancellation is a sign that Wisconsin is not Bitcoin-friendly.
Most states in the US have legalized the use of Bitcoin, but a few still have rules to regulate how and where Bitcoin applies.