The Unlawful Internet Gaming Enforcement Act (UIGEA) was passed in 2006 by the US Congress. This legislation outlawed financial institutions and banks from processing payments, deposits, and withdrawals for gambling purposes.
This made it difficult for gamblers in the U.S to participate in online gambling. Some companies went ahead to pull their services out of the country and stopped accepting U.S. customers.
From 2011, however, things changed for the better thanks to most casinos accepting Bitcoin as a currency. American gamblers and operators could now gamble online without worrying about breaking the federal laws. Besides, since Bitcoin is not regulated, it became easier and faster for casinos to process transactions.
What Made Bitcoin a Popular Currency for Casinos?
The popularity of Bitcoin as a currency for casinos continued to increase due to its nature. Bitcoin users were able to transact while remaining anonymous, which means the federal government had no way to trace the transactions of American gamblers.
Bitcoin is also a fast and more secure mode of payment compared to other payment methods like credit cards, as it does not require identification. Payment through methods like credit may need the casino to confirm your identity, which may take up to 24 hours before you can start playing. The same process also applies to withdrawals that make them delay payments.
According to The New York Times, due to its anonymity, cryptocurrency helps to protect gamblers from fraud. This is mainly because third parties cannot decipher transfers between the involved parties.
Another perk of Bitcoin is that there are lower fees and few limits. You can transfer as much money as you want, and the casinos do not charge any transaction fees as the cash is transferred directly to their e-wallet.
According to Alex Kapinsky at NJGamblingFun, “Payment methods such as bank wires and credit cards can charge transaction fees amounting to 6% or more which are so high for most players.” Kapinski further says, “Checks, on the other hand, are cheaper but will require a lot of time to be processed, which renders them unreliable. As a result, more players are looking for alternative ways of payment like cryptocurrency.”
Gambling taxes both at federal and state levels are also a concern. Most of these taxes are applied to winnings reducing the amount gamblers remain with. This is the reason most players are switching to Bitcoin to avoid the hefty fees and taxes.
Due to the volatility of Bitcoin, there was a concern for gamblers who were gambling using Bitcoin. While Bitcoin was not regulated, it had a highly volatile trading market, which essentially means these gamblers were betting twice. This means the gambler has to first gamble on the casino and the second time on the value of the Bitcoin.
But how does the player gamble on the value of the Bitcoin? Well, since Bitcoin experiences mild to severe volatility in the short term, the gambler has to hope that the value of the Bitcoin remains the same or increases.
Therefore, every time you gamble with Bitcoin, you must observe its value. In the event, the value of the Bitcoin goes below the value at the time of depositing. It means that you lose some of your Bitcoin at the Bitcoin casino. On the other hand, if the value of the Bitcoin rises, it means you gain.
Players have to exchange the Bitcoin for their currency at some point. This means at this point. Players become subject to the fluctuation of the Bitcoin market.
According to Forbes, numerous casinos are now using cryptocurrencies as a currency. But while some decided to focus entirely on Bitcoin, others added it as one of their payment options.
One example of a huge casino that accepts Bitcoin is 888 casino. You can top up your 888 accounts with Bitcoin via your Neteller account. This allows you to make direct deposits from your cryptocurrency wallet.
To make a deposit, you should set up a Neteller account. After the account has been verified, you can add Bitcoin funds as directed on their website. Once you have the Bitcoin in your Neteller account, you should log into your 888 casino account and send funds directly from your Neteller.
After you’ve deposited your Bitcoin, 888 casino offers a wide range of games to bet on. Some of these casino games include slot games, blackjack, roulette, and poker games, to name a few.
What to Do If You Hold Other Types of Cryptocurrency?
If you have other cryptocurrencies like Ether or Dogecoin, you can also gamble in online casinos that accept Bitcoin. The first step would be to convert your cryptocurrency to Bitcoin. Before exchanging your currency, make sure to do thorough research and settle for an exchange that offers high liquidity.
According to BBC News, high liquidity suggests there are many people exchanging coins on that site, and you are, therefore, more likely to get a good deal. You can deposit your cryptocurrency and use it to buy Bitcoin. Once you have your Bitcoin, you can withdraw the Bitcoin to your wallet and deposit it to your 888 casino account, as described above.
Bitcoin Is the Future Currency for Casinos
Bitcoin is on its way up as a currency for casinos. Its popularity is expected to increase due to its cheap, fast, and secure nature. And as more governments keep enacting strict gambling laws, we should expect more gamblers to start using Bitcoin as a payment option to bypass the restrictions.
Also, as more Bitcoin casinos that purely use Bitcoin come up, we should expect Bitcoin to take a more central role in gambling transactions. The future in Bitcoin betting looks bright, and it is a matter of time before all online casinos accept Bitcoin as a mode of payment.