🖋️ Does a casino need to have both a bitcoin gambling license and provably fair games?

While casinos do not have to have both features, there are certain obvious advantages. A casino whose games are provably fair only protects users against unethical gaming practices. But one that has both will also be able to offer legal protection against all sorts of gaming malpractices.

🖋️ Are bitcoin casino licenses from the UKGC superior to those from Curacao eGaming?

Curacao license requisition is extensive but nowhere near as extensive as that of the UKGC. The commission mostly focuses on the financial stability of the applicant. But the UKGC uses much more stringent criteria, which at the end of the day, means more comprehensive customer protection. But all in all, a CeG license is way better than none at all.

🖋️ How can I tell whether or not a bitcoin casino is actually licensed?

You can check the website to see whether it has a license on display. In most cases, this will be a seal from the relevant licensing jurisdiction.

Top Licensed Bitcoin Casinos - UKGC, Curacao eGaming + More • TheBitcoinStrip

Are Bitcoin Casinos Licensed?

There is a common misconception that bitcoin gambling is unlicensed. But the truth of the matter is that the licensing of bitcoin gambling has been around for ages.

Admittedly, the use of bitcoin does provide a lot of leeway for business operators in the casino sector. For instance, such a business can process all payments internally. This eliminates the need for third parties like merchant banks, which would necessitate the acquisition of a gambling license.

But while a gambling license is not a prerequisite for payment processing, it is necessary for reputable casino operators. With regard to payments, they would want to safeguard spare funds in a secure environment and they cannot do so without licensing.

They would also want to have rights protection from independent authorities, which again, requires valid licensing. Bitcoin casinos need licensing in order to offer gaming content from the top software providers in the sector. Having a license enhances a bitcoin casino’s reputation, creates player loyalty and serves as an important marketing tool.

Therefore, having a valid license from a gaming authority is an essential tool for plenty of reasons. This explains why reputable gambling regulators in various jurisdictions issue operational licenses to casinos supporting the use of bitcoin. By doing so, they indicate their acceptance of the responsibility to oversee the operations of online casinos.

The most common bitcoin gambling license is the Curacao eGaming license. Others include Gibraltar, Malta and the UKGC. Let’s learn more about these and other regulatory authorities in the sector.

Best Bitcoin Casino Licenses

UK Gambling Commission

In view of the high level of gambling regulation in the UK, the country instituted the UK Gambling Commission (UKGC) in 2014.

Prior to its inception, specific sites licensed to operate within ‘white-listed’ areas could accept players from the UK. But since 2014, all operators wishing to serve the UK market have to hold a license from UKGC. As one of the most respected gaming authorities in the world, operators who get its license are considered highly reputable.

On its site, the UKGC stipulates that any business offering gambling services using digital currencies in the UK must hold a license. Back in 2013, the UK government had proposed the exemption of bitcoin businesses from licensing and regulation. Their reason for this was that virtual currency is not legal tender.

But starting in 2016, the UKGC considers bitcoin as a cash equivalent or alternative, therefore offering regulatory protection for users in the cryptocurrency industry. Other cash equivalents include credit/debit cards and wire transfers among other payment options. According to its regulations, players qualify for protection on the condition that they only use bitcoin casino sites that the commission approves.

Curacao eGaming License

As mentioned above, this Caribbean island is one of the most popular licensing jurisdictions for crypto casinos. Online gambling legislation here dates as far back as 1993 and the country considers this as a central sector.

Since 2002, the Curacao eGaming License Authority has had the mandate of licensing the cryptocurrency gambling industry. It has now since grown to have one of the largest license demands globally.

One of the reasons for its popularity is the fact that it makes its requirements manageable. The essence of this is to ensure that even small startups can meet the demand and get a license. Furthermore, sub-licensing here is cost-effective. Licensed operators under its purview are required to use hardware located within a special zone known as the e-zone. Here, they get some of the competitive tax rates in the world such as 2% corporate income tax, 2% on net profits and 0% on gross incoming wagers.

For bitcoin casinos, this regulator undertakes a thorough investigation before licensing and conducts regular audits thereafter. In order to encourage growth in the sector, it provides financial and technical support to the entities under its oversight.