Payment by cryptocurrency in online gambling in 2021

The interest in Bitcoins & Co is increasing more and more. The popular cryptocurrencies can now be found everywhere when it comes to paying on the Internet. They have long since found their way into everyday life and are used to purchase services and

So it’s no wonder that the gambling industry is also using the advanced currency system. Bitcoin casinos like Cloudbet are becoming increasingly popular and players want to deposit and withdraw with crypto. Take a look at the cloudbet slot offers for example.

Payment requirement

Offering only Bitcoin as a payment option is not enough for players and many online casinos have adapted to it. They offer the following other digital currencies:

  • Bitcoin – BTC
  • Ethereum – ETH
  • Bitcoin Cash – BCH
  • Dogecoin – DOGE
  • Dash – DASH
  • Litecoin – LTC

Before starting one’s gambling pleasure in online casinos with real money, one should create an account for one’s cryptocurrency at a Bitcoin wallet provider (for example, blockchain.com) or at an exchange. After that, one looks for a Bitcoin casino, registers and chooses his cryptocurrency as a payment method as well as the desired amount.

Then one transfers the first deposit with Bitcoin or another cryptocurrency from one’s own wallet to the wallet of the online casino with real money. This works conveniently via address bar and fastest via a QR code. The deposit takes only a few seconds and nothing stands in the way of the gaming fun. The currency used is the euro, so you should pay attention to the conversion rate.

The advantages of cryptocurrency

  • convenient and comfortable
  • anonymous transactions
  • lower costs
  • complete security
  • worldwide use
  • money transactions are not traceable
  • no verification necessary

Regulation

Regulation of BTC CasinosFor the regulation of cryptocurrency gambling in an online casino, providers have acquired various licenses from different countries.

Curacao

The regulatory authority in Curacao is considered trustworthy and German players can be sure in online casinos with real money, which are equipped with such a license. Because in case of difficulties and problems, EU law can be invoked at any time. Curacao belongs to the Netherlands – Dutch Antilles.

Kahnawake

The Kahnawake online gambling license has a solid reputation and the regulatory body Gaming Commission is known not to tolerate any violations of fair play as well as underage players or criminal activities.

Malta

The Maltese government has taken steps to integrate crypto into the market. The Mediterranean island was the first country to create a comprehensive legal framework for cryptocurrencies, blockchain and digital assets. Nicknamed “The Blockchain Island,” Malta is also home to blockchain startups, crypto exchanges and several gaming companies that offer transactions in cryptocurrencies.

Costa Rica

The Central American country of Costa Rica does not offer an online gambling license in that sense, but companies are allowed to register online crypto gambling. In terms of cryptocurrency, the Costa Rica government supports the development of this industry.

The gambler’s point of view: more advantages than disadvantages

Cryptocurrencies have more advantages than disadvantages that make players’ gambling experience safe and lucrative. Offered at Bitcoin casinos are many extensive bonuses and CashBack offers when using cryptocurrencies. These bonuses should definitely be used, as they are excellent as increased starting capital for lots of chances to win.

However, offering only bitcoin transactions is not enough in online casinos with real money. Players want to be able to fill their casino accounts to play with a variety of different cryptocurrencies (including Etherum, Litecoin, Monero, etc.). The advantages of Bitcoin & Co outweigh the disadvantages. Nowadays, players who deal with payment methods and currencies in online casinos also know this. The trend of cryptocurrencies is unbroken, they are accepted worldwide and gone are the days of a niche market.

Therefore, taking into account all the advantages, we can also expect a further significant increase in the number of crypto payments, especially in the gaming sector. The integration of cryptocurrencies on any gaming platform is not an option, but a necessity.

What will change for online casinos in 2021

Most online casinos so far have an official license from other states of the European Union. German licenses have not yet been issued, with the exception of a handful of licenses from the German state of Schleswig-Holstein, which are only valid there. The reason is that online casinos were declared not legal with the old State Treaty on Gambling. However, the regulations on online gambling at the time were ultimately overturned by the European Court of Justice after years of litigation. Germany was asked to enact new rules on gambling, but nothing happened for a long time.

Those who played from here, for example, in the reputable online casinos such as at www.spielbank.com.de, moved in a kind of legal vacuum. Now, after years of dispute, the German states have finally been able to agree on a new State Treaty on Gambling. This will come into force on July 1, 2021. Until then, a transitional regulation applies. The most important innovation: online gambling will now also be legalized by German jurisdiction. Casino operators can also apply for a license in Germany.

Why it was so difficult for the federal states to reach an agreement

The discussion about online gambling, especially in online casinos is mainly ideological in this country. Federal states such as Schleswig-Holstein or Hesse always wanted a pragmatic solution, since gambling could not be prevented in the borderless Internet anyway. Today, games can easily be played from anywhere, even on an Android smartphone or an iPhone, regardless of whether the operator is located in Germany or abroad. On the one hand, they wanted to intervene in a guiding way by legalizing online gambling, and on the other hand, they wanted to generate urgently needed tax revenue.

Until now, all stakes of the players went abroad and were taxed there. The state of Schleswig-Holstein even went ahead and reactivated its own licenses, which were already issued before the old State Gambling Treaty of 2012. Hesse also threatened to take a special path if no agreement could be reached across the states.

Other federal states, on the other hand, stuck to youth and player protection and pointed to the dangers of gambling. They also pointed out that in many cases it was not known who the operators of the online casinos, most of which are based in Malta and operate under Maltese licenses, were. In the end, a compromise was reached, also because time was pressing. The prospect of additional tax revenue in this billion-dollar market was simply too tempting.

Casino licenses

Operators of online casinos applying for a license in Germany have to fulfill a number of conditions. The licenses are issued by the states, but a state agency for online gambling is established. Online casinos that direct their offer to players in this country without a German license are to be legally prosecuted.

It must also be ensured that no player registers at the online casino who has not yet reached the age of 18. In addition, deposit limits must be set up for players. In the future, each player should be allowed to deposit a maximum of 1,000 euros per month in online casinos. In addition, players who display conspicuous gaming behavior may have to be banned and reported to a central file so that they cannot register with any other provider. The online casinos will be required to monitor this.

Currently, a commission is being convened to determine the tax rates for stakes on slot machines or online poker. According to reports, 8% tax is to be levied on stakes in online slots and 5% tax on stakes in card games such as poker or blackjack, based on the taxation of sports betting on the Internet, which has already been in force up to now and on which 5% betting tax is also levied. Tips for games in the online casino can be found at quotenmeter.de Advertising for online casino games is also to be limited in the future.

Approval on the one hand and numerous criticisms on the other

In principle, the legalization of online gambling in Germany is welcomed. However, criticism hails the design of the new rules. Quite a few operators of online casinos take the view that their licenses acquired in other EU countries are also valid in the entire European Community due to the existing freedom to provide services and have already announced that they will take legal action if necessary.

They had already overturned the regulations of the old State Treaty on Gaming with exactly the same argument at the time. The reporting of players to a central blocking file is also viewed very critically, as the companies would have to disclose customer data and would therefore be in breach of the applicable data protection legislation.

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