US Gambling Regulators Unlikely to Consider Crypto For a Long While

    News and Updates

    Bitcoin and Ethereum are arguably at the top of the food chain in the current cryptocurrency online gambling sphere, and there are some that say these two currencies, especially Bitcoin, are set to become mainstream as soon as 2020.

    More realistically cryptocurrencies won’t become mainstream until about 2025. Thoughts on this matter were confirmed not so long ago when SharesPost Research confirmed that only 51% of investors feel that the chances of crypto going mainstream by 2020 are real. However, this was a sharp decline to Sharespost’s previous study one year before in which 78% felt crypto would go mainstream in 2020.

    The reduced confidence can predictably be directed towards 2018’s market burnout. When Sharespost conducted their previous survey, cryptos were by and large showing marked increases.

    Speculation in Regard to Ease of Crypto Gambling Transactions

    There has been a fair amount of speculation on just how convenient cryptocurrencies would be for whales that visit land-based casino around the world. Macau is the world’s largest gambling hub in terms of revenue and already. As a result, Dragon Inc is testing out its cryptocurrency theory in the Far East’s gambling metropolis.

    See our April 2018 news reportLAND-BASED CASINO TO USE CRYPTOCURRENCIES

    In that report, we discussed how the casinos can charge 5% to 7% for organizing private rooms or tables for whales as well as the cash handling fees for gamblers that want to exchange foreign currency to play at the casinos in Macau. The same can be said for some Las Vegas and New Jersey venues too.

    Dragon Inc feels it has come up with a solution that negates the set-up fees and saves whales gambling millions of dollars a considerable amount on the 5% to 7% charged.

    The idea behind this is free transactions that are borderless. Bitcoin and Ethereum have exactly the same advantages, but they do not provide the facilities to convert crypto into cash as quickly as something like Dragon Coin’s concept of fast movement of cash over borders unaffected by changing exchange rates.

    The Use of Cryptocurrencies in Europe

    In Europe, cryptocurrencies are slowly finding their way into new rules and regulations. This is a good thing as opposed to previously when governments were seemingly trying to do everything they could to downplay the threat of virtual currencies.

    However, as time goes on and governments start to get used to the idea of cryptocurrencies, it seems that new regulatory bodies keep popping up, which effectively open the doors for investors to move forward to the next step.

    For online gambling in Europe, the next step has been to start the process of licensing online casinos that accept cryptocurrency as well as those that offer casino games that allow players to gamble using their cryptocurrencies – the latter much like Mbit casino whereby our members are able to play using BTC, ETH, LTC, and DOGE.

    At the moment, Curacao, UK, and Maltese gambling authorities already license crypto online casinos that use cryptocurrencies. These three commissions already have strongly-regulated gambling laws for fiat currency casinos. All that was needed was for these licensing authorities to open up their rules and regs for cryptocurrency casinos.

     Why is the USA’s Progress for Regulating Crypto Gambling Still Behind?

    At the moment one of the reasons behind the slow uptake of cryptocurrencies in the US is the reputation of the online gambling industry.

    After Black Friday, the entire online casino industry was brutally attacked by the US government ripping down online casinos that were using offshore accounts, money laundering, and investing their customers’ account balances into risky stocks and other such deals. Numerous online casinos were found guilty of mismanaging people’s funds as well as money laundering, plus add tax evasion to the list.

    Once the US government dug deeper into the USA’s online casino industry’s financial dealings, there were shocking revelations. For example, Full Tilt Poker, which was a well-known poker site did not have enough money to play back all its members. The owners had been using customer account money for their own personal ventures. Full Tilt Poker owners stole roughly $440 million.

    It was not difficult for the US government to demonize the online gambling industry. Add the fact that cryptocurrencies are not exactly on the US government’s good books despite rumors even the president himself has a large cryptocurrency portfolio.

    Cryptocurrencies Could Derail Steady Progress

    The current online casino economy in the US is still very delicate. It is slowly but surely bringing its reputation back online with both regulatory and consumer confidence grows. Increasingly the rebirth of online gambling in the US is approaching back to its pre-Black Friday state with more states allowing or considering legalizing online gambling.

    It only now states such as Michigan have applied to legalize online gambling.

    Adding cryptocurrencies or suggesting to add them could be asking too much. No one wants to add fuel to a fire that is slowly going out. It is not as if cryptocurrencies have a great reputation, so why change something that is already running relatively smoothly.

    A Long Way To Go

    Quite a few States have already authorized certain forms of online gambling. However, the numbers are small and even in places such as New Jersey where online gambling has been allowed, there have still been legal disputes.

    Most would have assumed that sports betting in New Jersey would have been a given considering online casinos were made legal, but this has, in fact, caused a court battle of its own. The case has been going on for years with only now the verdict being that New Jersey will allow sports betting.

    This just goes to show why the chances of Bitcoin entering into the US online gambling market as a legal mainstream currency is unlikely to be something that happens any time soon.

    While over in Europe and Asia, cryptocurrencies are not only being licensed online, but they are also likely to find their way into land-based gambling established.

    The good news is that those US citizens can gamble using crypto legally. By transferring their US currency to an offshore crypto wallet and then into an offshore cryptocurrency casino, the federal laws that prevent US citizens from gambling online can be bypassed for the time being.

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