Comparison of Crypto Betting Regulations

Tamara Tasić
By Tamara Tasić
Crypto Expert
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Updated Nov 4, 2022
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Read time 17 min

Crypto betting regulations are becoming prominent in more countries as the betting industry increases in size. Many countries worldwide have strict guidelines to ensure maximum safety for people who engage in regular gambling opportunities. Because of this, players can now visit their favorite online casinos and betting platforms and enjoy gaming sessions without worrying that their information will be stolen and sold on the black market. But what about crypto betting regulations?

Crypto betting regulations still have issues, and the problem is getting more attention than ever before. Read this review to learn more about current crypto betting regulations and which countries approve of the activity.

How Does Cryptocurrency Betting Work?

Basically, blockchain betting occurs in two different ways: on-chain and off-chain. The off-chain gambling industry consists of physical and online casinos that approve cryptocurrency. These establishments use third-party platforms to turn Bitcoins or other cryptos into fiat currencies. You can also find online casinos that work without relying on fiat currency and paying only in Bitcoin. 

Conversely, on-chain betting is where a decentralized application runs on a blockchain network. In this case, a smart contract is created and logged on the blockchain when you place a bet on a selected platform. This contract confirms that a bet has been placed and guarantees that a player will receive a payment if he wins. In addition, games are provably fair, allowing customers to verify the fairness of every result.

On the other hand, off-chain online casinos are simpler for authorities to pursue. Generally, you will see that crypto betting sites regularly block the IP addresses of some states. This is especially the case with players from certain countries like the United States.

United States Crypto Betting Regulations

The United States is one of the largest markets in the world that allows the use of Bitcoin for different transactions. At the same time, Bitcoin is considered a currency for taxation purposes. At this time, no crypto betting regulations would prohibit it if you use any crypto to access gambling sites. 

Comparatively, only a few states allow online gambling, including Delaware, Michigan, New Jersey, Nevada, Pennsylvania, and West Virginia. Hence, if you reside in one of these states, you can rest assured about engaging in crypto gambling options. To check users’ locations during playing sessions. online casinos that offer games in all these states’ regions take advantage of geolocation services. 

Below, you can take a look at the current crypto betting regulations for the USA in each state where gambling is legal.

Delaware Crypto Betting Regulations

  • Legal forms of crypto gambling: online casinos, sports betting, poker
  • Existing laws: Delaware Gaming Competitiveness Act
  • Legal since: 2012
  • Regulator: Delaware Lottery
  • Tax rate: 2.2% – 6.6%
  • Legal age: 21

Michigan

  • Legal forms of crypto gambling: online casinos, sports betting, poker
  • Existing laws: Lawful Internet Gaming Act
  • Legal since: 2019
  • Regulator: Michigan Gaming Control Board
  • Tax rate: 4.25%
  • Legal age: 21

New Jersey

  • Legal forms of crypto gambling: online casinos, sports betting, poker
  • Existing laws: Assembly Bill 2578
  • Legal since: 2013
  • Regulator: New Jersey Department of Gaming Enforcement (NJDGE)
  • Tax rate: 3%
  • Legal age: 21

Nevada

  • Legal forms of crypto  gambling: sports betting and poker
  • Existing laws: Assembly Bill 114
  • Legal since: 2013
  • Regulator: Nevada Gaming Commission (NGC)
  • Tax rate: 7.75%
  • Legal age: 21 

Pennsylvania

  • Legal forms of crypto gambling: online casinos, sports betting, poker
  • Existing laws: Expanded Gaming Act 
  • Legal since: 2017
  • Regulator: Pennsylvania Gaming Control Board
  • Tax rate: 3.07%
  • Legal age: 21

West Virginia

United Kingdom Crypto Betting Regulations

The United Kingdom is another country with a liberal approach to crypto gambling. According to UK crypto betting regulations, online casinos that seek to provide such services must ensure the legitimacy of crypto funds before applying for a license from the UK Gambling Commission. Once the operators obtain a license for performing crypto gambling activities, players are free to engage in regular wagering with Bitcoin and other popular cryptos.

  • Legal forms of crypto gambling: online casinos, sports betting, poker
  • Existing laws: Gambling Act
  • Legal since: 2005
  • Regulator: UK Gambling Commission
  • Tax rate: gambling winnings are not taxable, while crypto gains are subject to 10% or 20% tax 
  • Legal age: 18

Regulations in Canada

In Canada, the legislation makes it illegal for companies to provide any gambling and services to local citizens without getting a license from the local province. 

In fact, the Canada Federal Criminal Code, all forms of online gambling are prohibited. However, Canadians are still allowed to gamble on sites located overseas. 

Additionally, the individual provinces in Canada are entitled to regulate gambling across their regions, and some local governments manage their online betting and gaming outlets. In 2004, the British Columbia Lottery Corporation introduced the very first legal online casino in Canada, PlayNow.com, allowing residents of Manitoba and British Columbia to enjoy legal gambling.

As for crypto betting regulation, Canada has yet to define it. Even if using cryptos is allowed in different industries, cryptocurrencies are still not legal tender based on the law. 

  • Legal forms of gambling: depends on the province
  • Existing laws: Criminal Code
  • Legality: Illegal on a federal level
  • Regulator: Canadian Gaming Commission
  • Tax rate: Tax-free if you are not a professional player
  • Legal age: 18-19

Canada consists of ten provinces – Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Newfoundland and Labrador, Saskatchewan, and Alberta. Each province regulates gambling in different ways, as can be seen below:

Ontario Crypto Betting Regulations

  • Legal forms of gambling: sports betting
  • Existing laws: C-218 Bill, Gambling Control Act of 1992
  • Legal Since: 2003
  • Regulator: Alcohol and Gaming Commission of Ontario (AGCO)
  • Tax rate: between 5.05% – 13.16%
  • Legal age: 19

Quebec

  • Legal forms of gambling: online casinos and sports betting
  • Existing laws: Act respecting the Société des loteries du Québec
  • Legal since: 2010
  • Regulator: Regie des alcools, des courses et de Jeux
  • Tax rate: non-taxable (only if you are a professional player who earns big amounts)
  • Legal age: 18 or more

Nova Scotia

  • Legal forms of gambling: online casinos and sports betting
  • Existing laws: Gaming Control Act
  • Legal since: 2021 (sports betting) and 2022 (casinos through the Atlantic Lottery Corporation)
  • Regulator: Alcohol, Gaming, Fuel and Tobacco Division of Service Nova Scotia
  • Tax rate: non-taxable (only exception if you are a professional player)
  • Legal age: 19 or more

British Columbia

  • Legal forms of gambling: online casinos, sports betting, poker
  • Existing laws: Gaming Control Act
  • Legality: 2010 (online casino through PlayNow.com) and 2021 (sports betting)
  • Regulator: British Columbia Lottery Corporation
  • Tax rate: non-taxable is you are a recreational player
  • Legal age: 19 or older

Australia Crypto Betting Regulations

Australia is known for restrictive online gambling provisions. In fact, according to Australian crypto regulation and its Interactive Gambling Act of 2001, Australian companies cannot offer certain gambling services, including online casinos, in-play sports betting, sports betting services without a country license, and betting on the lottery.

Residents who would like to play at offshore sites are not prohibited from doing so. However, in regard to Australian crypto regulation, the Australian gambling authority Northern Territory Racing Commission (NTRC) introduced an informal ban against online cryptocurrency wagering, excluding Bitcoin and Ethereum.

  • Legal forms of gambling: depends on the state
  • Existing laws: Interactive Gambling Act
  • Legal status: Illegal
  • Regulator: The ACT Racing and Gambling Commission
  • Tax rate: NA
  • Legal age: NA

Vietnam and Crypto

Overall, Vietnam is one of the leaders in cryptocurrency usage. The country hasn’t adopted any law regarding using, trading, and owning cryptocurrencies but has widely embraced digital currencies. In fact, the governor of the State Bank of Vietnam (SBV) issued Circular No. 09/2022/TT-NHNN. This document provides guidance on foreign exchange management that applies to prize-winning electronic games for foreigners. 

Online gambling, on the other hand, is prohibited throughout the state. You should know that players who engage in any sort of gambling activity risk being punished criminally or administratively. Still, players can visit offshore gambling sites and place their wagers. 

  • Legal forms of gambling: horse race betting on the state tracks in Hanoi and Ho Chi Minh City, betting on greyhound racing in the Lam Son Stadium in Vung Tau, and the Vietnam Lottery 
  • Existing laws: Criminal Code (Bộ luật hình sự), Casino Decree (Nghị định)
  • Legal status: illegal
  • Regulator:  State Government
  • Tax rate: NA
  • Legal age: NA

Indonesia Gambling

Indonesia consists of 37 provinces and prohibits any online gambling based on Islamic law. Still, no legal enforcement exists, and players throughout the country engage in gambling activities. The Ministry of Social Affairs and Religious Affairs joined forces with the Ministry of Communications and Information Technology to set a ban on Indonesian players in 2012, but without success.

Players across Indonesia can visit offshore gambling sites without worrying about breaking rules. But since the law doesn’t protect players, sticking to a secure platform is always a recommendation.

If you want to use crypto in Indonesia, remember that The Indonesian Ulema Council (religious body) forbids using cryptocurrencies for exchange, including buying/selling transactions. Note that this edict is not a legal instrument that could prohibit people from using cryptocurrencies. However, it could deter local citizens.  

–       Legal forms of gambling: NA

–       Existing laws: Penertiban Perjudian (Gambing Control)

–       Legal status: Illegal

–       Regulator: NA

–       Tax rate: NA

Brazil Online Gambling

Brazil banned gambling activities in 1941, based on the Law of Misdemeanors (Decree Law No. 3688/1941). Still, there are some exceptions to the general ban so that players can engage in certain gambling forms, such as the lottery or poker. Players can also visit offshore gambling sites without risking any punishment. 

While online gambling remains illegal, The Brazilian Economic Affairs Commission (CAE) proposed a regulatory framework for cryptocurrencies. This instrument will provide greater transparency in cryptocurrency operations and prevent financial crimes. We can only expect to see regulation on crypto gambling in the years to come.

  • Legal forms of gambling: horse race betting, lottery, poker, fixed odds sports betting, fantasy sports betting
  • Existing laws: Law of Misdemeanors (Decree Law No. 3688/1941).
  • Legal status: illegal with some exceptions
  • Regulator: Federal Savings Bank for lottery
  • Tax rate: 30% for legal forms

India Regulation

While India regulates the gambling market with the outdated Public Gambling Act of 1867, this Act does not have any prescriptions regarding online gambling and cryptocurrencies. Each state is allowed to set its gambling laws. The Act differentiates between games of chance and games of skill, with only the latter being allowed. The activity is considered legal because there is no official Law to prohibit online gambling in India. 

The local regulator does not prohibit or approve crypto regulation in India. However, the country adopted a 30% tax on digital assets as of April 1, 2022. This law applies to in-app purchases and reward points provided by crypto gaming apps. 

The future of crypto regulation in India and crypto gambling is still unknown. Taxation is one step in the good direction, with cryptocurrency being taxed only if you make a profit by selling coins.

  • Legal forms of gambling: games of skill
  • Existing laws: Public Gambling Act
  • Legal status: not defined by law
  • Regulator: NA
  • Tax rate: 30%

Philippines Online Gambling

Filipino players are allowed to gamble online, with the only exception being that locally-based casinos and sportsbooks are not permitted to offer gambling services to residents of the country. However, Filipino players can access online poker, online casinos, horse betting, and online sports betting at sites regulated by local gaming commissions or regulatory agencies.

Based on the Philippines’ online gambling rules, players can access online casinos outside of the Philippines. The best recommendation is to stick to a licensed casino operator.

The Philippines doesn’t have any law prohibiting the use of cryptocurrencies for gambling. At the same time, the Philippines are one of the first Asian countries to accept cryptocurrencies.

  • Legal forms of gambling: online casinos, sports betting, poker
  • Existing laws: Presidential Decree 1067-a
  • Legal since: 1975
  • Regulator: Philippine Amusement And Gaming Corporation (PAGCOR) and Philippine Amusement And Gaming Corporation (FCRLC)
  • Tax rate: 5%
  • Legal age: 19-21

Turkey Regulations

Online gambling in Turkey is illegal as of 2007. However, players can enjoy online gambling on offshore gambling websites. In addition, the sportsbook brand Sports Toto Organization operates several Turkish online platforms, while the lottery Millî Piyango İdaresi operates a lottery platform. The former are the only legal businesses in the state.

As for using crypto, the Turkish government prohibited using crypto for payments. President Recep Tayyip Erdogan wants the country to control cryptocurrency activities fully. However, crypto can be used as an asset, allowing investors to buy, sell and hold popular coins. There is no gambling-specific law regarding cryptocurrencies in Turkey.

Crypto betting regulations significantly differ from one country to another. Each country has laws regulating the sector in one way or another. Still, crypto betting lacks a regulatory framework in most countries around the world. For this reason, you should always be aware of local laws regarding cryptocurrency gambling and remain safe.

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Tamara Tasić
Tamara Tasić
Crypto Expert

Tamara is an entrepreneur and content specialist. She is passionate about gambling and cryptocurrency world, having worked on different casino and crypto writing projects. Tamara is also interested in legislation, investments, and DeFi.