Im interested in starting a bitcoin casino, however most of the articles I have come upon are from 2 to 3 years ago. All I know is that I have to be of legal age. Is creating a bitcoin casino legal? Do I need any certification? Thanks!
Im interested in starting a bitcoin casino, however most of the articles I have come upon are from 2 to 3 years ago. All I know is that I have to be of legal age. Is creating a bitcoin casino legal? Do I need any certification? Thanks!
Sorry, US law only.
The details matter. Where would the casino be located? If it is purely online, from what country will you operate it and from what countries will you seek players? And how would the casino operate? Finally, why use bitcoins as the currency? That would significantly restrict your player base, and bitcoins have some other unique issues involved with them.
The casino would be purely online. I am planning on operating it from the US and seeking players all around the world. The casino would consist of a couple of games that allow the user to bet with a chance of gaining more than their initial bet. The reason why I'm using bitcoin is because I remember reading that bitcoin isn't actual currency, but rather it is a symbol which doesn't count as 'true' practice for a casino? I also know for a casino you require a license, and I'm trying to avoid that.
If you form your casino in a state that permits online casinos, consistent with the laws of that state, and permit gambling only in jurisdictions that permit online casino gambling and in which you are 100% compliant with the law, then you are free to start an online casino.
Look to your left. Look to your right. How many companies do you see operating online casinos in the manner in which you intend? That should give you a pretty good idea of your startup costs and the legal and regulatory burdens you would face.
I currently reside in NY, and jurisdiction here states that casinos are limited to Indian reserves. Would I still be permitted to create an online casino? Also, where does a .eu domain come into play? I know that most casinos use a .eu domain, but does it exempt them from US jurisdiction?
Thank you for all of the answers so far. I'm very glad I found this community!
You can't have a legal online casino in the US. If you want to base one elsewhere, you'll need to consult with whatever country you're going to base it in.
You can't have a purely online one. The machine is based somewhere. You are based somewhere. Your customers are based somewhere. Laws in each of those locations are going to apply.
Using bitcoins rather than dollars won’t make a difference. If the bets consist of anything that has real value then it is subject to federal and state gaming laws. The casino could use ponies as the medium of exchange for the bets and it would still be subject to the gaming laws. Bitcoins have real world value and, like the pony, would make it a gaming operation that is subject to federal and state gaming laws. Casino laws are not just restricted to bet involving a currency that is legal tender of some nation.
"Therefore, if the country you are in states that Bitcoin gambling is prohibited, then it is not allowed. However, rules suggesting this has not been implemented; therefore, playing casino games using bitcoins is perfectly legal."
Before I created this thread, I googled if bitcoin casinos were legal and I recieved such result. I also did some research and the second result stated that you deposit and win with bitcoin, but it is your choice whether or not you want to convert that to cash. Also, @Tazing Matters, if what you said is true, then I do believe there are some online video games that consist of a gambling system that uses IN GAME currency. Yet they manage to do it without any legal issues. How is bitcoin any different? It is not regulated by anyone and can be considered an object with little to no monetary value. This goes back to my point where you have the option of converting to cash. Isn't bitcoin simply an object until it gets converted?
An in game currency that is not paid for by anything of value and cannot be converted to anything of value does not present a problem because all that represents is your score in the game, i.e. a way to keep track of how well the player did. But if the in-game currency is convertible to something of value in the real world then it is again subject to the gaming laws.
There are certainly some illegal online casinos that you can find out there. Do not assume that just because you see an online casino doing it that it is operating legally. There are online sites that will sell you illegal drugs, too, and you know those aren’t legal either. Just because they exist doesn’t make them legal.
Legal where? And under what conditions? Did the page actually present any sound legal authority for the position it took?