Unless you’ve been living under a rock in the last decade or so, you must have heard about cryptocurrencies. This digital payment method, regulated by peers, i.e., its users, has taken the world by storm. Some people mine it to get rich (a kind of gambling), while others use it like regular fiat money – to buy or sell things.
While cryptocurrencies are not illegal in the United Kingdom, some industries are still hesitant regarding its usage.
This article covers the relationship between cryptocurrencies and the gambling industry under the Union Jack flag.
What Are Crypto Casinos?
A crypto casino is an online casino which accepts cryptocurrencies as a payment method, just like bank cards or direct wire transfers. The only difference is that you credit your casino account with crypto assets and the playing features might be called differently. You have crypto card rooms, crypto jackpot slots, digital card rooms, online roulette, and other casino games paid with crypto.
From a player’s perspective, being able to use cryptocurrencies for online gambling would be just another convenient benefit of this form of iGaming.
However, the authorities and casinos beg to differ.
The State of Crypto Casinos in the UK
Governments and parliaments are more than successful in falling behind tech development and improvements. That’s why many activities don’t have the necessary legal regulative.
This is exactly what happened to cryptocurrencies and online gambling. If we know that the UK Gambling Act dates back to 2005, it’s clear that this country needs an updated legal framework that would specify what punters can and can’t do in the UK today.
For starters, UK residents aren’t banned from using extraterritorial crypto casinos. If the casino in question is a legal entity and accepts players from the UK, there’s no reason why Britons wouldn’t use it.
But the situation is different within the UK.
Where’s the Catch?
The key lies in the hands of the UK Gambling Commission, which doesn’t want to issue licenses for crypto casinos to become registered legal businesses in the UK. The main reason behind this strict policy is the volatile nature of cryptocurrencies. Given the fact that the gambling niche is already considered a high-risk business – due to its specifics – it seems they don’t want to add another dynamic factor to an already complex formula.
However, the times are changing, and the market is craving a new legislative in this area, to everyone’s benefit. The state would collect taxes and the players would have more options at their disposal.
UK Companies and Crypto Payments
After all, numerous UK-based companies already accept cryptocurrencies. From tech companies and retailers to entities in the hospitality industry and art galleries, the scope is wide and eclectic.
The situation is even better for people who want to buy gift cards using cryptocurrencies – a large number of UK businesses lets their customers use Bitcoin&.co for this purpose.
While most global brands still don’t accept crypto payments in the UK, again, you can pay gift cards with crypto on the Amazon UK website. Also, it’s possible to buy Xbox gift cards via Bitcoin payments and use them on the Microsoft Store or Xbox website.
Interestingly, Tesla UK doesn’t accept Bitcoin but approves of Dogecoin for a limited number of products; good to know, since Dogecoin, Bitcoin, and Ethereum have been trending higher recently.
But why gift cards and not other products, one might ask? Logical details following, to paraphrase David Bowie from Ashes to Ashes.
Casinos, Crypto, and Fluctuations
Cryptocurrencies are highly prone to fluctuations. In the crypto bear market, which was the case in 2023, the value is lower and most people are selling their assets. In the bear market, the prices are going up and people are buying. This is a very simplified explanation, as many variables affect the crypto market, and the market can still be in good shape even in the bear period (which was, again, 2023).
A casino that accepts cryptocurrencies as a payment method doesn’t only perceive it as money. Due to everything above, it’s also a kind of bet. If the cryptocurrency in question goes up, the casino makes even more money. But if it loses value, the relevant casino will also be at a loss.
Some international online casinos play along with that risk and accept cryptocurrencies. They have their formulas that help them make profits.
As for players, being able to pay with crypto is a convenient add-on to the existing payments, as we stated above. Also, the involvement of blockchain technology is for some players a sort of guarantee that no third parties would meddle with their data and assets.
The Final Word
Some of the existing UK online casinos would be happy to start accepting crypto payments in 2024. It would help them attract more players and diversify their own portfolios.
But from this point – and we’re already two months into 2024 – it seems too optimistic to expect any major legislative changes by the end of this year. So, if you want crypto iGaming, you’ll probably have to keep playing on foreign platforms.
