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Crypto Gambling in The USA – Is It Legal?

Gambling has always been a key part of American culture. It is one of the main driving forces that lead the economy. However, the fifty united states also include fifty unique state laws that aren’t exactly united. Whether or not you can gamble with crypto or gamble at all very much depends on where you’re located.

Can You Get In Trouble For Gambling With Crypto?

Only when online gambling itself is illegal in your state. Despite having a quite deep gambling history, the majority of the US has some form of gambling restrictions. However, none of those prohibit the use of cryptocurrency specifically. 

Cryptocurrencies

Gambling with crypto is subjected to regular legal stipulations. Crypto gambling laws are truly no different. You can gamble online with any kind of currency or token as long as online gambling is legal within your state.

Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA)

The extremely complex UIGEA is one of the biggest federal laws that prevent most players from gambling online in the USA. While the act actively prevents many people from betting online, it doesn’t prohibit it outright. The law prevents banking facilities and credit card companies from facilitating transactions related to online gambling even when online gambling itself is legal.

As a result of this oddly enforced act, iGamers who live in states that support online gambling must jump through bureaucratic hoops. Luckily thanks to the decentralized nature of the blockchain, online gamblers can easily deposit at their favorite Bitcoin gambling sites with cryptocurrency.

Which States Allow & Prohibit Online Gambling

The only state that completely prohibits every form of online gambling is Washington. The following handful of them support all kinds of online gaming. Including online casino games, horse racing, sports betting, e-sports betting and so on.

States that allow 100% of online gambling:

  • Delaware 
  • Nevada 
  • New Jersey 
  • Pennsylvania 
  • West Virginia
  • Michigan

Each other state in the US has a different relationship with different betting games. Casinos that offer service to residents of these states are required to use geo-targeting technology. This is done to determine whether the customers are physically located in any of the five states. If you’re not living in any of the aforementioned areas please be sure to check your local laws to deal with your specific demands.

Why Gambling Sites Block USA Players?

If you’re located in the US, you won’t be able to visit the majority of online gambling sites unless they’re offshore sites. Regulation of cryptocurrency and gambling in the USA remains unclear due to a lack of clarity in the regulatory landscape. Many online Bitcoin casinos are not interested in dealing with legal drama from the US government.

In order to protect themselves, they blanket ban every IP address from the US visiting their site. This, however, doesn’t mean that gambling on their site is against the TOS if you’re physically located in the US. Some crypto casinos will let you gamble on their site as long as you bypass your geological restrictions.

Is It Possible To Bypass The USA Geographical Restrictions?

Although breaking the law is not recommended, bypassing your geological restrictions is fairly easy. Since cryptocurrency regulation remains extremely unclear, players can use crypto with a VPN to enter online casinos. Moreover, players can take even a safer route and sign up at an offshore Bitcoin casino.

While technically illegal, no player has ever been charged or arrested for breaking the gambling restriction laws to this day. The only side that usually gets in trouble with the US government is the casinos themselves. Although this means you likely won’t face any major repercussions, you’re still at risk of losing your casino balance if they get in legal trouble.

Some casinos themselves are against the use of VPNs and location spoofing to bypass local gambling laws. If you break the casino terms and conditions you’re at a high risk of getting your account closed and funds confiscated. Many casinos are okay with it though. So, be sure to pick to read the casino terms and conditions and check if a VPN is allowed.

How To Simplify Crypto Gambling With Paypal

The American e-commerce giant has now become one of the biggest crypto supporters. Gambling with crypto has never been easier for Americans as Paypal is a trusted and well-established brand. Although you can’t transfer tokens directly from PayPal to your casino due to UIGEA, you can withdraw the tokens to your wallet and send them from there.