Why Do Some Bitcoin Casinos Have Country Restrictions?

    Bitcoin Guide

    The rapid growth of bitcoin and its mass adoption worldwide has brought about regulatory and licensing challenges in various jurisdictions. While it remains to be seen whether cryptocurrency casinos will surmount this obstacle, many of these casinos have opted to forego operations in countries with stringent laws regarding online gaming. This move, of course, has far reaching implications on the growth and development of the sport, owing to the fact that a significant proportion of potential subscribers are locked out. This article seeks to delve deeper into crypto-coin casino operations and why they have restrictions in some countries.


    This is perhaps the most glaring impediment to the growth of cryptocurrency gaming. Many countries either have unclear laws or have banned the sport completely. In this regard, the grey areas in the law make it difficult for the casinos to operate owing to the fact that the legality of their operations is unclear. On the other hand, for the countries that have a ban imposed on cryptocurrency gaming, the move greatly impacts revenue generation for the sport and the country too. The need to legislate much clearer laws with an active enforcement agency is key in addressing this issue.


    As an industry norm, compliance is an expensive affair. Regulation regarding cryptocurrency gaming in various jurisdictions has an impact on the gamers. Various regulations requiring casinos to pay taxes and other mandatory fees will of course have a knock-on effect on the payout ratios and house edge. These variations in regulatory framework are what results in some cryptocurrency casinos to avoid operating within certain countries. In Kenya for instance, the recently unveiled budget proposals for the year 2016-17, have gravely affected online gaming. The government through the treasury department has imposed over 50% tax on online gaming companies including cryptocurrency establishments. This unprecedented move will certainly impact the sport and industry stakeholders as a whole.

    Language barrier

    For many cryptocurrency casinos, they are yet to have their games formulated in various languages. Many countries with a significant player population continue to be left out of the sport owing to language barrier. Despite English being the officially accepted international communication language, many individuals can hardly read or write in English. This hurdle creates a communication breach which continues to negatively affect the sport. The need to have a portal which caters to a wide racial divide is absolutely vital in order to have an inclusive effect in the gaming sector.

    Infrastructure development

    For cryptocurrency casinos to operate, there is need for basic infrastructure to be existent. Electricity and internet connectivity are some of the key components that are necessary to make cryptocurrency gaming a reality. In some jurisdictions, the unavailability of a reliable power supply makes the venture impossible to explore. The power issues may be as a result of insufficient power reserves, an insufficient power distribution system or even natural calamities that wreck power supply lines. In 2011 for instance, Japan had a severe earthquake that resulted in a tsunami off the Pacific coast of Tohoku. The consequences of this natural disaster were extreme, especially on the infrastructural developments in the country. Power lines were destroyed, and even internet connectivity was lost. This of course affected cryptocurrency casinos and their operations. Such disaster prone areas are a contributing factor to some of these casinos failing to set up.

    Economic levels

    Countries that record robust growth and economic development offer a good ground for cryptocurrency gaming activities. For such countries, the level of disposable income is relatively higher as compared to other countries. This in effect means that individuals and households in general will be more inclined to spend on leisure and fun activities. The converse is however true for the less developed nations. Countries that have low welfare levels by extension have a low income per capita, individuals therefore have less money to spend, save or invest. As a result, there is less money in circulation within the various sectors of the economy. This certainly affects casinos too since they record low business. For these cryptocurrency establishments to stay afloat, there is need for their revenues to surpass their operating costs within the jurisdiction they are in. A feasibility study is usually of utmost importance to many cryptocurrency casinos before they set up business in any country. The need to establish the economic viability of a particular locale is essential in determining the return on investment for these casinos. These factors of course determine the rate of return to the player among others.

    In conclusion

    Bitcoin is a novelty that has significant benefits in the global financial scene. From faster transactional processes and improvement of living standards for various households, the list is endless. Governments need to embrace this 21st – century innovation by enacting fairer and more lenient legislation in order to boost their growth. The creation of a mutual relationship between state and the sector will definitely result in a win-win situation. With the digital age amongst us, innovation should be encouraged as a way to create jobs and improve livelihoods. Cryptocurrency gaming is no exception.

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