- Gambling With Bitcoin
- Is Bitcoin Betting Legal?
- How to use Bitcoin for Sports Betting – Process
- Bitcoin Betting Sports Pros & Cons
Gambling With Bitcoin
Online sports betting or casino with bitcoin are becoming a popular form of gambling mainly due to cryptocurrency’s secure, cost-effective & anonymous nature.
Sports bettors can enjoy additional or unique bonuses for cryptocurrency deposits offered by many crypto sportsbooks and US punters can access the world’s top offshore sportsbooks via bitcoin deposits & withdrawal.
Those who bet casinos can enjoy Provably Fair games based on the Bitcoin blockchain.
So, gamblers around the globe obviously make the most of many cryptos benefits including security, efficiency & privacy that can separate accounts from existing banking and e-wallet platforms.
How does Bitcoin Betting work?
Thanks to Bitcoin’s ability to form instantaneous global transactions in a highly secure and anonymous way, gambling sites using bitcoin are a natural movement in the industry.
There are folloowing 2 types of crypto gambling sites;
- Crypto Exclusive Bookmakers
- Conventional Bookmakers that accept Cryptocurrencies on top of fiat currencies (hybrid bookmakers)
For the specific list of the sites, check;
- For sports betting, see the full list in Bitcoin Betting Sports 18 Top Sites
For casinos, see the List of Best Anonymous Bitcoin Casinos & Bonuses
Cryptocurrencies for Gambling
The most popular cryptocurrencies accepted in the gambling sites are Bitcoin, Etheleum & Lightcoin as below;
However, many gambling sites have expanding altcoins like;
Cloudbet now offers a range of cryptocurrencies to play with – BTC, ETH, BCH, USDT, USDC, PAX, PAXG, LINK, DAI, DASH, DOGE and LTC. And we’re constantly adding more…
Crypto Gambling Winning Formula
Despite the speculative nature of cryptocurrencies, Bitcoin and blockchain, its underlying technology, will most likely hold a key to the new age in global finance and it’s worth exploring how sharp punters exploit its full potential.
We GEM provide you with the following Advantage Gambling techniques which enable you to gain risk-free extra income from bitcoin and sports betting & casino bonuses;
Is Bitcoin Betting Legal?
Although the legal status varies from state to state & some jurisdictions (such as Argentina and Russia) severely restrict or ban foreign currencies, Bitcoin or cryptocurrencies are completely deregulated and the majority of the countries don’t make the usage of bitcoin itself illegal.
This means, there is basically no restriction on using Bitcoin to fund betting sites (actually any online merchants).
However, UK Gambling Commission views cryptocurrencies as crypto-assets rather than currencies and they require evidence of fund, which make it difficult for any gambling sites to obtain licensing of crypto funding.
BTW, according to howmuch.net the current Bitcoin legality by country is;
The key issue is whether online gambling is legitimate in the jurisdiction you reside in and whether the operator holds the relevant license, see Regulation of Cryptocurrency Around the World for your own country’s status.
For this matter, you need to check with the laws and rules of where you live as they also vary by location.
However, simply put, except for 8 countries in the world (Cyprus, Poland, North Korea, United Arab Emirates, Singapore, Brunei & Cambodia), and as long as you play with the regulated gambling sites that accept cryptocurrencies, players have little worry about gambling online.
For further details, go to How To Make Money From Offshore Sports Betting With 3 Advantage Plays.
Tax On Bitcoin Gambling
When it comes to tax, this is absolutely depending on the jurisdiction. Any gambling gain in the UK is not subject to income tax even Professional Gambler doesn’t need to even declare (also see further details in the above report).
However, you may be liable to CGT (Capital Gain Tax) if your holding bitcoin’s price increases, but only on disposal, check the details in HMRC Policy Paper.
As a general rule, bitcoin gambling is taxed in the same way as any other form of gambling. This means, if you don’t need to pay taxes on your gambling winnings, the same rule applies to your crypto gambling winnings, the below shows some examples;
Country not imposing a tax on gambling winnings;
Austria / Belgium / Bulgaria / Denmark / France / Germany / Ireland / Italy / Malta / Sweden / The UK / Canada / Australia etc.
Countries imposing a tax on gambling winnings;
Spain / The USA / Mexico / China / India / Ethiopia etc.
For further details, go to How To Make Money From Offshore Sports Betting With 3 Advantage Plays.
Given the sensitive nature of the subject, anyhow, suggest you consult your tax specialist for any cryptocurrencies-related decision.
How to use Bitcoin for Sports Betting – Process
We have drawn 5 Stage of the Bitcoin Betting process;
- 1. Buying Bitcoin (With Your Fiat Currency) with Bitcoin Wallet
- 2. Finding Bitcoin Gambling Operators (Sportsbook / Casino)
- 3. Funding Bitcoin & Betting (Use Advantage Play to Get Guarantee Profits)
- 4. Withdrawing Winnings
- 5. Selling Bitcoin (Converting Into Your Fiat Currency)
We use BetOnline & Bovada (both are hybrid, which means accepting both fiat & cryptocurrencies) videos as real examples. Although we show the sports betting process, casino betting works the same.
Established in: 1991
Licensed in: Panama
Product: Sports, Casino & Poker
Restricted Countries: Australia, France & Panama
Accepted Crypto: BTC, ETH, LTC, XRP & DASH
Bonus:100% Crypto Deposit bonus up to $1,000 (code:CRYPTO100) & 35% Crypto Reload bonus for life (CRYPTO35) Plus 5% Boost to these bonuses when you use BTC
Established in: 2011
Licensed in: Kahnawake Gaming Commission (Quebec Canada)
Product: Sports, Casino & Poker
Restricted Countries: Bovada is exclusive for the US Clients
Note: Not anonymous since full KYC is required. Bovada is probably the most popular & best online sportsbook for US players. For outside the US, Bodog is the sister site check HERE if you are not geo-blocked since Bodog still restricts many countries.
1. Buying Bitcoin
Firstly, you need to purchase Bitcoin. To do this you need a Bitcoin Wallet / Exchange where you buy bitcoins to fund the Bitcoin sportsbook. A bitcoin wallet is exactly like Paypal where you load money onto it. You can use it for shopping or sending to / receiving from other people’s wallets.
The only difference is that the money is not kept in your fiat currencies such as USD, EUR & GBP but is converted into Bitcoins. And you can’t physically withdraw your Bitcoin but you need to exchange it back to your original or preferred fiat currency.
Bitcoin Exchange for Sports Betting
We list the following 2 established Bitcoin Exchange;
Coinbase (Not Anonymous)
- Coinbase is said to be “The Most Beginner Friendly Bitcoin Exchange” in the world since it was founded in 2012, located in San Francisco USA. If you reside in the USA and store in a USD wallet (on top of BTC wallet), your fund is insured by FDIC in case Coinbase becomes insolvent.
- You need to go through basic KYC (Know Your Customer) and you can connect your bank account, credit/debit card & PayPal to buy Bitcoin and sell & withdraw into them.
Changelly (Almost Anonymous)
- Changelly is one of the most trusted anonymous bitcoin exchanges/wallets founded in 2013 and is currently licensed in Malta.
- Changelly’s trading algorithms are integrated into large and reputable trading platforms, like Binance & Bittrex, so they can pick & provide the best exchange rate possible in the span of milliseconds.
- You need to submit an only e-mail address and nothing else, and you can use a credit/debit card to buy Bitcoin and sell & withdraw into them.
- Start HERE to enjoy Semi-Anonymous Condition.
Watch the below video (suggest you click Enlarge icon for better view) prepared by BetOnline, which explains how to create a bitcoin wallet using the above Coinbase (suggest you click Enlarge icon in the video to watch full-screen mode);
A Bitcoin wallet is a software program in which you store, receive & send Bitcoin.
The bitcoin exchange lets you convert “real money” like US dollars to Bitcoin and many exchanges including Coinbase provide a wallet. But KYC process is a must for bitcoin exchange.
And, some of the wallets assure completely anonymous, thus people who concern about strict privacy may want to use a separate bitcoin wallet from a bitcoin exchange.
Actually, Betonline’s 2nd tutorial video shows how to create a new bitcoin wallet and send the fund from Coinbase to it as below;
2. Identifying Bitcoin Sportsbook Operators
There are plenty of Bitcoin online bookmakers on the market. However, as cautioned, you need to be careful about selecting reputable bitcoin betting sites.
Make sure to see our list first (for Sports Betting full list in Bitcoin Betting Sports 18 Top Sites & for Casino List of Best Anonymous Bitcoin Casinos & Bonuses) rather than shopping around to take other less known sites, and do further due diligence by yourself if you feel necessary.
3. Funding Bitcoin & Placing a Bet
Funding Bitcoin betting sportsbook
Using Bitcoin to fund your accounts and place your bets is basically the same as you funded your account with cash or a bank card. However, bear in mind that;
- Conventional Bookmaker Accepting Bitcoin like BetOnline: You will place a bet in your chosen fiat currency like $ / € / £ and they just accept BTC as one of the depositing methods, which means although you fund BTC into Sportsbook, your BTC will be automatically converted into your fiat currency in the account.
- Bitcoin Exclusive Bookmaker: Your BTC funding from your wallet will be deposited & stored in BTC without any conversion, and you will bet in BTC on their platform.
So, we show you how these work in BetOnline another video.
Placing a bet with Bitcoin
When it comes to placing a bet, it’s again Bitcoin exclusive bookmakers that are no different than the conventional online sportsbooks. For Conventional Bookies accepting BTC, as explained above, you will bet in your fiat currency so everything is the same.
You can locate a list of sports events on their website, select the one you want which will be shown in the bet slip and finally place the bet.
4. Withdrawing Winnings & 5. Selling Bitcoin (Converting Into Your Fiat Currency)
Withdrawing BTC to your BTC Wallet and converting it into your fiat currency to receive it in your bank account/credit or debit card is exactly the opposite process of what you have done in the above 1. – 3.
Anyhow, watch the summary video using BOVADA sportsbook (currently welcome bonus up to $250) as below;
Bitcoin Betting Sports Pros & Cons
Finally, let me recap the pros & cons of bitcoin betting.
Pros for Bitcoin Betting
- High-Security Nature: Bitcoin Transaction is highly secured, and Anonymous / Pseudonymous Sign-Up Condition (many Bitcoin exclusive sportsbooks don’t ask for KYC documents) enables any players even from the countries where online gambling is prohibited or still legally grey area such as the USA to start it. Above all, you hardly worry about identity theft & any fraud.
- Quick & Cheap Withdrawal: As you know many sportsbooks offer free deposits but charge a hefty fee on withdrawal. But given the absence of any middleman, basically blockchain transaction doesn’t cost you and very quickly typically takes only minutes.
- Better Offers: Low transaction costs of BTC together with the much lower costs of developing a cashier section reduce service costs, which allows casinos to provide a competitive betting environment. This means you may often find more generous promotional offers on top bitcoin betting sites.
Cons For Bitcoin Sports Gambling
On the other hand, there are 3 cons.
- Volatile: Its price bounces up and down every day because it’s still largely traded speculatively. The price may become stable eventually, but at this stage, it is still high risk.
- Uncertainties: Bitcoin is yet experimental, thus still a lot of uncertainties. It is not a household payment method but just only a limited number of places accepting it as a payment method. Importantly, although Bitcoin is Not Regulated currently and Difficult To Regulate, nobody knows how each government controls it in the future, check Your guide to cryptocurrency regulations around the world and where they are headed.
- Scam: Many people may view anonymity & un-traceability as an advantage. But naturally, it will invite a lot of rogue sites. Given the lack of legislation and ease of scamming people, it’s inevitable to make careful DD (Due Diligence) before you chose sports betting sites that accept bitcoin. In the above list, we select only the sportsbooks with good tracking records (past performance can’t guarantee any equivalent future though) and have best in class reputation in various forums & review sites.
Good Luck On Your Bitcoin Betting!!
Joshua Walker (bio)
Editor – Global Extra Money (GEM)