Is Bitcoin Permitted for Gambling in the USA?

Casino gambling enthusiasts know how hard it can be to discover a trustworthy online casino in the United States. The legal framework regarding the validity of Bitcoin gambling in the US casinos do not prohibit Bitcoin betting or consider it illegal. 

Ever since internet gambling emerged, it gained immense popularity from across the globe. Today, the Internet is filled with thousands of gambling sites. But what has caught the attention of the gamblers is Bitcoin gambling. If you are an experienced casino player, you might have heard of Bitcoin betting. But the question is “Is betting Bitcoin illegal in the United States”? Well, if you are curious to know the US laws regarding Bitcoin betting, you have come to the right place! Let’s have a look at the US laws that talk about online gambling.

Is Bitcoin Permitted for Gambling in the USA?

The Unlawful Internet Gambling Act

According to the UIGEA act, credit or debit card companies and the financial institutions are not allowed to facilitate any monetary transaction associated with internet gambling. This act came into existence in 2006, which means the gambling sites in the US (established before 2006) were allowed to use the US banking system to process the gambling transactions. But as soon as UIGEA emerged, the gambling institution couldn’t use banking facilities to process the casino transactions anymore.

This act had a negative impact on the renowned gambling sites such as PokerStars. The point is the USA laws strictly prohibit the involvement of credit or debit card companies and banking institutions to facilitate gambling transactions. In order to survive in the market, online casino companies started to use cryptocurrency payment methods to process transactions without breaching the laws.

Player’s View on Bitcoin Gambling

First of all, no federal laws declared internet gambling illegal in any way. There’s no denying that the recent USA gambling laws do not allow the brick and mortar and online casinos to accept bets on the USA territories. However, the laws don’t prohibit users to place bets. That’s the reason why you may find all the Bitcoin casinos based outside the boundaries of the United States. This way, they can accept a wager without breaching the US laws.

The Bitcoin gambling law for players varies from state to state. Basically, there are three major statuses of the USA Bitcoin gambling laws i.e. not unlawful, legal, and illegal. Let’s learn more about the Bitcoin Gambling laws in brief.

In which States the Status of Bitcoin is Either Legal or Illegal?

People living in New Jersey, Nevada, and Delaware can partake in almost all types of casino gambling activities. And, Bitcoin gambling isn’t an exception. In other words, the gamblers living in any of the above-mentioned states are allowed to stake, deposit, and withdraw cryptocurrency and Bitcoin. However, the casinos that provide services in these three states have to confirm the residency of the gamblers before allowing them to participate in Bitcoin gambling. This can be done with the help of exclusive geo-tracking software, a system that tracks the location of the individuals.

Washington is the only state in the USA that considers cryptocurrency gambling illegal. People living in this state are not allowed to participate in any offshore casino sites. They can neither signup nor place bets (whether using digital currency or fiat one). It is pretty difficult for the government to track the state residents and stop everyone from visiting offshore casinos. However, the casino sites themselves prohibit the entry of Washington residents. They use their IP addresses to track their location.


Name: Is Bitcoin Permitted for Gambling in the USA?
Author: Charles Richter
Published Date: 23/07/2019
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