Top 5 Emerging Regulations Affecting Crypto Betting: A Look At The Evolving Landscape

The blending of digital currency and online gambling has led to a vibrant and fast-rising sector. However, the implementation of this development is yet to take a steady course that both regulators and operators can rely on.

Across the globe, states are struggling with defining the kind of regulation that could be applied to this field for it is just cropping up; however, equally crypto betting rules have started coming up targeting consumer rights, tax evasion, money laundering, etc.

People who follow this space closely can attest that every year new countries are joining those that have legalized gambling; for instance Greece among many others.

Here we shall discuss major emerging regulations for crypto betting. 

According to Grand View Research, “The worldwide online gambling market was worth $63.53 billion in 2022 and is predicted to keep growing by 11.7% each year from 2023 to 2030. More people using the internet and playing games on their phones is making online gambling more popular.”

One of the major issues related to cryptocurrencies is the idea that they could be used for money laundering purposes. To reduce risk governments are becoming more strict about AML/KYC laws about online gaming through bitcoins (etc).

This means that sites will need identity verification from all customers as well as monitoring their financial history; so as not to miss any fishy dealings going on there.

Impact on Bettors: When signing up for crypto betting platforms, you should be prepared to go through stricter verification procedures. The latter may include but is not limited to providing Identification cards from governments, showing proof of address and passing more audits if need be.

Impact on Operators: If a crypto betting site is to position itself favorably, it must invest in strong laws that govern against money laundering, as well as prudent know-your-customer compliance strategies.

This will involve getting skilled staff who understand the rules of performing transactions so as not to break any laws; putting up transaction monitoring tools that are effective at recognizing instances where funds are being transferred from criminals or other wrong sources through their system; and ending up reporting all illegal or suspicious acts.

A lot of jurisdictions are thinking of or are already introducing license and registration requirements for platforms in crypto betting.

These licenses are expected to be the same as what is needed by operators of normal online betting sites and could entail terms relating to acceptable types of cryptocurrencies, safe betting practices and tax reporting.

Impact on Bettors: The growth of moderate power could hypothetically usher in a safer and more trustworthy crypto-gambling environment. Nonetheless, it may also result in a reduction in the number of platforms, particularly for operators in non-regulated areas.

Impact on Operators: Having a license may take a long period and cause one much difficulty.  For one to operate legally, operators must ensure they fulfill all the regulatory requirements.

According to the Playtoday.co, “The current global casino market size value is around $263.3 billion. The number of global cryptocurrency users jumped twofold in 2021, with a 178% increase. The combined weight of gambling-related cryptocurrencies is over $150 million.

The number of crypto bets increased by 2.2 in Q1 and Q2 of 2022.  North America spends 107 minutes on average every day at an online casino platform. Twitch dominates the casino streaming world with 95.9% of total viewership.”

Many nations already have strict rules concerning promotional campaigns of the standard internet-based betting.

It is expected that crypto-gambling may encounter the same measure as well; hence, it will not be allowed to focus on certain groups, have deceitful ads, or even practice aggressive marketing, while at the same time telling people to gamble more than they should be doing.

Impact on Bettors: There could be fewer crypto gambling ads on the internet and social media. Nevertheless, reasonable advertisement methods play a significant role in shielding at-risk consumers from excessive gambling.

Impact on Operators: Crypto betting platforms will need to carefully craft their marketing strategies to comply with regulations and avoid hefty fines.

Cryptocurrencies, which represent a new asset class, are still relatively young, and the tax requirements associated with betting winnings from these digital assets are still in the process of change.

Governments are trying to figure out how to tax such winnings based on factors such as the kind of coin that was bet, the country where the gambler comes from, and the amount won.

Impact on Bettors: Cryptocurrency betting winnings have tax implications that must be understood in your jurisdiction. Despite using cryptocurrency, it is possible that you have  to pay taxes on these earnings.

Impact on Operators: Crypto betting platforms may have to hold winnings taxes or account them directly to the government for users.

Geo-restrictions on online betting could become more challenging to enforce due to the global nature of cryptocurrency.

Regulations might target certain cryptocurrencies or specific payment methods used in betting transactions, or authorities may opt to restrict access to gambling platforms based on users’ geographical locations.

Impact on Bettors:  You might face limitations on which crypto betting platforms you can access depending on your location.

Impact on Operators: Crypto betting platforms may need to implement geolocation verification tools & restrict access to users in prohibited jurisdictions.

The regulatory landscape is changing for crypto betting all the time. We can expect further developments in regulations, as the market reaches maturity and technology advances. Below are potential trends to watch out for:

•  Harmonization of Regulations:  International cooperation among nations could lead to the establishment of more consistent crypto-gambling laws, ensuring fairness and security for all parties involved, including both gamblers and casino operators. Organizations like the Financial Action Task Force (FATF) could play a crucial role here.
•  Focus on Innovation:  Regulations might adapt to embrace innovative technologies within the crypto betting space, such as provably fair games and decentralized betting platforms.
•  Regulation of Specific Cryptocurrencies: Cryptocurrencies like Monero or Zcash offer increased privacy, which could make them more attractive for money laundering activities. Betting platforms should restrict the use of these type of cryptocurrencies. Certain digital currencies with privacy features might face stricter regulations compared to more transparent coins.

Crypto gambling has become a source of wonder and amazement for many bettors and operators alike. Understanding these regulations is important because the situation is changing every day. This will help you know about making wise choices while engaging with crypto-bets.