Non-Gamstop casinos have been growing in popularity since the UK Gambling Commission brought stricter regulations to the British gambling scene. With the UKGC implementing lengthy self-exclusions and other measures to protect problem gamblers, all punters have been affected and have been looking at non-UK casinos as an alternative.
As funding methods have also become tighter in the UK, cryptocurrencies are emerging as an option for those looking to access casinos outside of the UK. There are advantages and disadvantages in using these that will be cover in this article.
How Do Cryptocurrencies Work at Online Casinos?
The use of cryptocurrencies is growing in many areas of commerce, and after a strong run in Bitcoin over the last year, many punters are looking to cash out some of their wins. With many online merchants not accepting cryptos as payments yet, online gaming is one outlet for savvy investors.
One benefit of using cryptocurrency technology is that it offers anonymity, however, this option is nullified by the KYC requirements at some casinos and some gamblers are seeking an outlet for spending. Many holders of these digital coins are considering whether running digital money through KYC regulated firms is the best use of the coin’s features.
Non-UK Casinos are increasingly offering support for cryptocurrency deposits and some have designated Bitcoin addresses which users can send their coins to, much like a traditional bank transfer. Casinos are now expanding their reach to altcoins with many accepting a range of coins such as ETH, LTC, and DOGE. Coin holders are often looking to avoid costly exchange fees and the time needed to trade cryptos for fiat money.
HowAre Cryptocurrencies Restricted at UK Casinos?
The UKGC added credit card deposits to its list of restrictions with UK punters now unable to make any deposits with a credit card. This is certainly a good thing to further protect problem gamblers, but again, it punishes those who are more comfortable with their gaming habits. Credit cards offered anonymity by separating transactions between everyday spending and entertainment costs such as betting. When applying for a mortgage, banks may run through an applicant’s recent bank statements and betting transactions can carry a stigma in the financial world.
Any UK casinos using Bitcoin and other cryptos would also require strict KYC checks and the anonymity of transactions is therefore lost. At present, the UK financial regulators are not entirely convinced about how they will treat blockchain currencies, but European Central Bank Chief Christine Lagarde has recently called for global regulation of the coins. Until that happens, UK firms are likely to shy away from offering deposits and casinos not on GamStop will remain popular because they are offering another deposit option.
How Are Non-GamStop Casinos Handling Cryptocurrencies?
There are many casinos not on GamStop and these are usually based in Europe, or more recently in Latin America. The rise of technology which brought online gaming to our living rooms and mobile devices, also meant that casinos do not need physical locations and companies are setting up in countries that can offer a more suitable climate and corporate environment. European firms will require more thorough identity checks, but maybe less limitations on crypto withdrawals. Latin American firms are usually providing a looser regulatory environment and users can often setup an account without any proof of ID or address etc.
Non-UK Casinos differ in their approach to regulation and users should apply some due diligence to ensure that they are legitimate. The ones that are, will offer a similar environment to the UK industry before the recent clampdown. If you are considering signing up for casinos not on GamStop then online forums can be a good starting point to get reviews from fellow punters.
Should Cryptocurrency Casino Transactions Be Tracked?
The irony of using cryptocurrencies with KYC is that it defeats the initial purpose of having money that is decentralized and not tied to the existing financial system. It is only fair that all casino bettors should be held to the same standards to clamp down on tax avoidance and black market activities such as money laundering, but having the transactions tracked would likely not be the best tribute to the original architects of digital blockchain money.
The reality is that many have made good investment gains from cryptocurrencies and are looking for avenues to cash out some of their gains. Withdrawing cryptos to fiat can come with costly exchange charges and this is the most common reason for those seeking crypto deposits.
Conclusion
The use of Non-UK casinos is becoming more popular are consumers in the UK seek an alternative to the tighter regulatory measures in the country. It is right that problem gambling be tackled, however, a one size fits all approach will always have its losers and punters that are happy with their betting habits and seeing their gaming freedoms limited.
The use of cryptocurrencies in the UK is limited because the financial regulators are still undecided about how they will treat the digital money. This means that UK casinos tend to stay away and it is the non-UK casinos that are taking an active approach. The use of cryptocurrencies shouldn’t be seen as a way to get around the GamStop exclusion rules, but these new forms of digital money look like they are here to stay, and the casinos are simply responding to consumer demand.