Crypto gambling has continued to grow in popularity, leading to governments drawing interest in potential regulation. The crypto space is known for its lack of a central authority or a regulatory board. Discussions on this topic have sparked speculation about the potential effects it could have on the broader crypto-gambling space.
Find out more about these possible effects here:
The regulations for crypto gambling in 2023
In various countries, the stance on crypto usage varies, with some nations allowing it while some prohibit its use. Japan, for instance, is a prime example of a country that embraces cryptocurrencies where it is allowed for payments and gaming on platforms like a crypto casino.
However, it's important to note that there is still a limited legal framework for different countries. This can lead to fewer restrictions on crypto gambling compared to traditional online gambling that uses fiat currencies which are subject to regulation by governments and regulatory boards.
The issue of crypto gambling regulation is a subject of debate, with no clear consensus in sight. Many people are uncertain about how regulation can affect the entire crypto-gambling space. However, some people foresee potential restrictions which may affect the core principle of decentralisation which is a key aspect of what draws people to invest in digital assets.
Does regulation affect bettors and their preferences?
With the possibility of regulation for crypto betting, here are the potential effects on the bettors:
The payouts can get taxed: When a regulatory board oversees crypto betting, there is a likelihood of taxes being imposed on the winnings. Bettors prefer to receive their rewards without a portion being deducted by taxes.
Regional nature of regulatory frameworks: There will not be a universal solution for regulatory frameworks for crypto gambling. If there is a framework released, that will be exclusive to a specific country or region, rather than applying worldwide.
Bettors will gamble responsibly more: With the regulations, crypto casino players will likely be given more ways to gamble responsibly. This includes deposit limits, self-exclusion options, and maximising the responsible gambling practices of the platform. The regulators will look for that as they want players’ well-being and financial health to be protected.
Increased stability of cryptocurrencies: With crypto regulation, the prices of cryptocurrencies will be less volatile which can be advantageous for some bettors. They might find it more palatable to bet with a stable value, although this might mean the potential for exceptionally high-value rewards, as seen before, may not be as prevalent.
Bettors must verify their identities: Regulation will mean platforms must verify their players’ identities to adhere to the anti-money laundering (AML) and know-your-customer (KYC) rules to help prevent illegal activities. This can turn people off the betting sites because it ignores the core principle of decentralisation and anonymity.
Projections show crypto gambling can become the norm
Initially viewed by many as a fleeting trend, crypto gambling is steadily gaining recognition to become a widely accepted form of gambling in the future. While traditional online gambling remains a prevalent choice, offering the convenience of using fiat currencies for gameplay or wagers on platforms like Bitcoin Sportsbet, the crypto-gambling landscape continues to evolve.
Crypto gambling is poised for continuous improvement, driven by advancements in blockchain, known for its security and anonymity. Additionally, the integration of the Metaverse has enriched the crypto casino experience. As more cryptocurrencies are introduced, they are likely to find a place in the realm of online gambling.
For regulators, observing the growth of crypto gambling can serve as valuable insights. They may need to consider the need for oversight and regulation of Bitcoin casino platforms. This could address industry challenges, ensuring stability and profitability for all stakeholders involved.
