Cryptocurrency and gambling – how to license bitcoin games

What is the gambling vertical?

Gambling vertical or gambling is a vertical of gambling, casinos. It is very popular among affiliates, as it includes a lot of demand from the consumer. Excitement and the opportunity to win “free money” is one of the pillars of the modern entertainment industry.

The niche is rightfully considered one of the most profitable. Here, advertisers always offer high payouts, several payment models, and usually know how to work with desktop and mobile traffic. However, where there is a lot of money, you should expect high competition turning to bitcoin gambling. Due to this, testing and entering gambling arbitrage may not be affordable for everyone.

If you are just getting acquainted with gambling arbitrage, we recommend reading introductory articles on this topic:

• Arbitrage of gambling traffic: what you need to know in order not to lose money
• How to choose a gambling offer?
• What happened to gambling in 2020? GGR Predictions
• In which countries is online casino advertising legan?
• The best approaches in creatives to advertise gambling offers.
• Research: what affiliates are pouring on during quarantine? Data collected from the popular spy service Adplexity

Bitcoin games – licensed or not?

Some crypto casinos and sports betting portals do allow their users to make deposits and receive payments with a minimum of personal information, or even without it. In this case, we can really say that they provide an opportunity to play for bitcoin anonymously. But is Bitcoin completely anonymous? The most curious will probably want to figure out where the anonymity of BTC transactions ends.

The speed of payments depends not only on technical features but also on whether you have to enter additional data for the transfer. If the Bitcoin casino does not ask for personal information during the deposit and withdrawal of funds, this can significantly speed up the process. Moreover, many cryptocurrencies already provide lightning-fast transactions.

It is too early to say that the current gambling ban does not apply to bitcoin casinos; however, certain legal grounds for upholding such a position clearly exist.

Games, where bets are paid in Bitcoin, are very attractive for entrepreneurs for several reasons:

1. operations using cryptocurrencies are uncontrolled, primarily by the state;
2. such transactions are not subject to financial monitoring and are often not taxed;
3. often such activities are not subject to licensing or obtaining any other permits;

Obviously, there are a number of benefits for players as well:

1. bitcoin games are anonymous, which means there is no verification of the identity of the players when withdrawing funds;
2. transactions, as a rule, do not take a significant amount of time to process them;
3. low, in many cases zero, transaction costs;
4. there is no need to carry out a currency exchange to place bets or withdraw funds.

Summing up, it should be noted that it is difficult to determine clear legal grounds for gambling using bitcoin at this stage. We cannot confidently and unequivocally say that holding such games is illegal; however, the legality of this activity is questionable. Despite this, the bitcoin gambling industry still continues to develop actively, which means that the actively growing crypto market requires clear regulation rules.

Preparing to launch an online gambling project? Order a consultation now – our lawyers will suggest the most optimal solution for choosing a jurisdiction, licensing and connecting all the necessary payment solutions. SBSB is your business, our concern.