Online Gambling and Cryptocurrencies – A Worthwhile Payment Method?
Cryptocurrencies have started to become more and more popular over the past number of years. They are now being used to conduct many different types of transactions. A lot more merchants are accepting cryptocurrencies as a form of payment. This includes the online gambling space.
Many leading gambling sites now allow you to deposit and withdraw funds through the use of cryptocurrencies. This is often a fast and cost-effective way for you to conduct your transactions.
Naturally, there are going to be some positives and some drawbacks relating to using cryptocurrencies as a form of payment at online casinos. This article will take you through some of the considerations to keep in mind if you are considering using cryptocurrencies as a transaction method.
How do Cryptocurrencies Work at Online Casinos
The process of using cryptocurrencies at online casinos is relatively straightforward. You will need to first sign up for an account with an online casino that offers cryptocurrencies as a form of payment. There will usually be specific cryptocurrencies allowed. This will usually include the likes of Bitcoin, Litecoin, and Ethereum.
When you are ready to add funds to your online casino account through using cryptocurrencies, you need to first get your hands on some cryptocurrency. Let’s assume that you want to use Bitcoin in order to add these funds to your account.
The easiest way to begin is to use a fiat-to-crypto exchange like Coinbase. Here you are able to use your pounds sterling to purchase some Bitcoin in an easy manner. This can be done by using a debit card, similar to making any other type of online purchase. Then you go to the deposit section of the online casino and choose Bitcoin as your method of deposit.
You will then be given a unique wallet address to which you will need to send the cryptocurrencies. You go to your Coinbase wallet and go to the send money section. You will then enter the wallet address of your online casino account and proceed to send however much Bitcoin you want. These funds should then appear straight away in your online casino account.
How are Cryptocurrencies Restricted at UK Casinos?
There are numerous benefits associated with using cryptocurrencies as a way to fund an online casino account. However, The UK Gambling Commission (UKGC) has curtailed some of these benefits due to restrictions.
Due to anti-money laundering guidelines, the UKGC requires all players to verify their identities. This means that the advantage of being anonymous through your use of cryptocurrencies is going to be voided. This is something that might not be an issue for most people, but it could put off certain people from using these types of platforms.
The UKGC is known for having all sorts of restrictions on payment options. This includes a ban on the use of any credit cards for gambling reasons. It also is contemplating introducing very strict limits on deposit and bet sizes in the future.
How do Non-GamStop Casinos Handle Cryptocurrencies?
As a result of the different restrictions that UKGC-licensed platforms have been forced to deal with in recent times, a lot more people have been looking at non-GamStop casinos. According to non-gamstop-casinos.com, these are platforms that are not going to be licensed by the UKGC and therefore are not going to be as curtailed in terms of restrictions.
You will usually find that these types of offerings have much more freedom when it comes to the types of games it offers, as well as bet size, payment options, and bonus sizes. Cryptocurrencies are highly popular as a form of payment on non-GamStop casinos. some platforms even now only accept cryptocurrencies and no fiat transaction methods.
There will be some non-GamStop casinos that do not require you to complete verification checks. This means that you can largely use your account in an anonymous manner when you use cryptocurrencies as a form of payment. However, there will be other non-GamStop casinos that will still have similar verification processes in place. It is important that you have conducted your due diligence and know that a given platform is safe for you to use before jumping in headfirst. Otherwise, you could be dealing with lost funds.
Should Cryptocurrency Transactions on Casinos be Tracked?
There are people on both sides of this debate who put good reasoning behind their opinions. Having the likes of anti-money laundering checks in place means that people will not be able to use the proceeds of criminal activity to gamble with and clean these funds.
The same goes for the likes of terrorism financing. However, the inherent nature of cryptocurrencies is that they are a way to conduct transactions in a free and independent manner. Therefore, they need to have verification checks to defeat this sort of purpose.
Ultimately, it is going to be down to the players themselves to decide if they are happy with their cryptocurrency transactions being traced and if they are happy to use the likes of UKGC-licensed gambling sites as a result, or if they want to proceed with non-GamStop casinos.
Up to you
As you have seen throughout this article, there are two main schools of thought when it comes to the use of cryptocurrencies on gambling sites. Some people like having the ultimate privacy that cryptocurrencies provide and do not want to conform to identity checks that are required on a lot of casino sites.
Then there are people who like using cryptocurrencies as a payment method and do not mind having to comply with these verification procedures in order to add funds to their online casino accounts. At the end of the day, it all comes down to personal choice.