What is a crypto casino?

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Crypto casinos are actively gaining popularity in the iGaming world. Essentially, any online gambling platform that accepts cryptocurrency can be considered a crypto or Bitcoin casino. Some of them use only cryptocurrency, others allow you to gamble for both real money and crypto coins.

Let’s figure out why more and more operators and players are choosing crypto casinos, what their advantages for both parties are, as well as how and where to obtain a gambling license for such a website.

Pros and cons of operating a crypto casino

Crypto casinos are chosen by a lot of progressive gamblers around the world. Forward-thinking operators do not want to lag behind trends and lose part of their audience, and therefore are starting to accept deposits in cryptocurrency. Let’s list the main advantages of a crypto casino for both iGaming business owners and their clients.

Security. Cryptocurrencies operate using the blockchain technology, which ensures complete transparency of all transactions. The absence of an “intermediary” between the casino and the client’s electronic wallet significantly reduces the risk of fraud.
Speed of transactions. Nobody likes to wait a long time for money transfers. In this sense, cryptocurrency is a perfect solution, since transactions on the blockchain occur in a matter of minutes.
No transaction fees. Another nice bonus is the absence of commissions for money transfers.
Anonymity and confidentiality. This does not mean that the platform will not request customer data. Typically, crypto casinos follow the principles of KYC (Know Your Customer) and AML (Anti-Money Laundering), which require the identification of players. However, transaction information on the blockchain does not reach any bank or government institution.
Variety of payment methods. The more payment methods a gambling website accepts, the more customers will come there. This is why a crypto casino with the ability to use both real and alternative money is an excellent option for an iGaming project.

But what about the pitfalls of accepting crypto? The main disadvantage is a very ambiguous attitude towards cryptocurrency in different countries of the world. Due to the fact that cryptocurrency is not backed by the authority of any state (and, in fact, by anything at all), numerous jurisdictions are suspicious of this technology. In some of them, the use of alternative money is prohibited, in others it is partially limited, and these rules are constantly changing. Inconsistency of regulation is the main problem of cryptocurrencies and gambling platforms that accept it.

The instability of the currencies themselves is also worth noting. Cryptocurrency rates are constantly changing, which means that Bitcoin casino operators and clients need to be prepared for sharp fluctuations in both directions.

Does a crypto casino need a license?

Yes, crypto casinos, like regular online casinos, need a license. Its presence makes the operation of a gambling platform legal and protects its owner from problems with the law. In addition, without a license it is impossible to open bank and merchant accounts, as well as buy official software for the website. Finally, a casino without a license loses many potential customers, because experienced gamblers are accustomed to checking the presence of this document.

It is worth mentioning that some operators do not want to spend time and money on legalizing their gambling projects. We strongly advise against following their example and putting the future of your business at risk.

How to get a license for a crypto casino?

In fact, the licensing procedure for a crypto casino is not much different from the process of legalizing a regular online casino. The algorithm for obtaining a license differs in all jurisdictions, but several general steps can be highlighted. So, how to get a license for an online crypto casino?

To choose a jurisdiction and ensure that your business complies with local licensing requirements;
To collect all mandatory documents about your company and its key persons;
To pay licensing fees;
To fill in the application and send it to the competent authority;
To pass several checks (background, financial, due diligence, technical, etc.) initiated by the local regulator;
To get a long-awaited license.

Remember that you need to provide comprehensive and up-to-date information. If the commission finds out that something is wrong or missing, it can become a reason for additional checks or even refusal to issue a document. In order to avoid such consequences, feel free to seek professional advice. LicensingAid team can assist you during the whole licensing process.

The best jurisdictions to launch a crypto casino

Naturally, the most important thing when choosing a jurisdiction for licensing a crypto casino is the rules regarding cryptocurrency in the country. However, in addition to this, it is worth paying attention to the conditions for issuing a license, the cost of obtaining the document, taxes and the reputation of the regulatory body. Let’s list several jurisdictions where we can recommend launching a Bitcoin casino.

Kahnawake

Canadian Kahnawake is loyal to cryptocurrency, in addition, the tax rate for iGaming operators in the jurisdiction is zero. Kahnawake’s license is respected in the world of gambling. Moreover, local permits allow operators to offer their services in all countries (where gambling is not banned) except the USA. As a result, the legalization of crypto casinos in Kahnawake is one of the best options today.

Malta

Malta is famous for its comprehensive cryptocurrency legislation. Thanks to the final transition of Bitcoin and other coins into the “white” zone, the island has become a popular place for legalizing remote crypto casinos.

Maltese gambling licenses have an impeccable reputation and a long validity period (10 years). In addition, local authorities provide complex support to operators. Finally, a license from an EU member state allows you to operate in the profitable European market. Despite all the advantages of licensing in Malta, it is worth considering the strict requirements for applicants and rather high taxes in the country.

Curaçao

Curaçao also allows cryptocurrency transactions and issues licenses for Bitcoin casinos. For a long time, the jurisdiction has attracted operators due to its soft licensing requirements and low document costs. This year, the procedure for legalizing gambling business on the island will change significantly.

The island will finally establish a licensing authority that will issue permits to gambling companies. In addition, the cost of obtaining a license will be increased and the requirements for AML compliance will be tightened. Despite the fact that it is too early to judge the consequences of innovations, we can confidently say that Curaçao will remain a popular licensing location (including for crypto casinos). Even with the increased costs of obtaining the document, its acquisition remains affordable even for new operators. In addition, centralization and control of the licensing procedure will enhance the status of Curaçao and its permits in the international arena.