On January 3, 2009, an anonymous individual or group using the name Satoshi Nakamoto revealed Bitcoin to the world. Since then, cryptocurrency has transformed the way people manage their money online.
Users have many more cryptocurrencies beyond Bitcoin to explore: Ethereum, Dogecoin, and TRON to name just a few. While cryptocurrency is legal to use in the UK, only around 12% of adults have owned crypto or currently do.
Despite this low usage rate, though, it is gaining wider recognition. In September 2024, for example, Parliament introduced the Property (Digital Assets Etc.) Bill to provide all users with stronger legal protection.
Businesses in diverse industries now accept crypto, but how about the UK’s online gambling industry?
In this post, we will explore how the UK Gambling Commission (UKGC) views cryptocurrencies, reasons why players use crypto, and more.
Here are the best online gambling sites with multiple payment options.
Understanding the UKGC’s Stance on Cryptocurrency
For players in the UK, online casinos accepting cryptocurrency are available. But none of them appear to hold a licence from the UKGC at the time of writing.
This does not instantly mean that they are untrustworthy. However, Gambling Zone strongly recommends that players only sign up with the best gambling sites holding a UKGC licence.
Why? Licensed casinos must follow an extensive list of rules to achieve and retain their licence. If the UKGC discovers any evidence that an operator is not doing so, they can take action. That may lead to the operator losing its right to legally deliver gambling services to players in the UK.
Casino operators intending to accept crypto must go to the UK Gambling Commission (UKGC) for approval. Why does the UKGC need to grant approval if crypto is legal in the UK? The UKGC states that it “needs to be satisfied” that licensed casinos have taken certain steps surrounding crypto use. This is to “reduce any risk to the licensing objectives to the same level” as is expected with other payment methods.
The UKGC recommends that operators accepting crypto from players consider the potential risks. These include:
- Assessing where funds are coming from (e.g., not crime)
- Crypto value fluctuations compared to fiat values
- Security of funds being held
If the UKGC cannot verify that a business handles crypto responsibly, it may not grant approval.
Additionally, business owners must be cautious when using cryptocurrency to fund gambling operations. The UKGC suggests that crypto-funded gambling businesses only apply for a licence if they have a complete history of source of funds (SoF).
This is crucial to demonstrate that the funds were acquired through legal means and not the proceeds of crime.
Why Do Players Use Cryptocurrency at UK Online Casinos
Why Do Players Use Cryptocurrency at UK Online Casinos?
Here are three reasons why players may choose to use cryptocurrency for casino gaming:
- Privacy: One of the most main factors driving cryptocurrency’s increasing popularity is the privacy it offers. However, it does not provide complete anonymity.
- Faster transactions: Cryptocurrency transactions can take less time than with fiat alternatives.
- Lower fees:Fees associated with cryptocurrency may be lower than thoserelated to credit cards and other banking options.
How Do Cryptocurrencies Work at Gambling Sites?
At online casinos accepting cryptocurrencies, coins/tokens are accessible alongside other payment methods. Using Bitcoin as an example, here is how a user may process a crypto transaction:
- They open a Bitcoin wallet at a cryptocurrency exchange.
- They find an online casino that accepts Bitcoin.
- The user selects Bitcoin as their payment method on the casino’s Cashier page.
- The user copies the Bitcoin wallet address shown.
- They enter the Bitcoin wallet address into the relevant field in their Bitcoin wallet.
- The user inputs the funds you want to transfer to their casino account and confirms the process.
- The user returns to the casino to find their account funded. This may take a few minutes.
- They can start playing responsibly when they are ready.
But remember: only play at UK online casinos that hold a UKGC licence. Be wary of any sites that show no signs of being legally licensed to operate in the UK.
Conclusion
Cryptocurrency has become more mainstream and accepted in the UK. However, it is much easier to find licensed gambling sites that accept fiat payment methods instead of crypto. Always choose your casinos with care and check for a UKGC licence before you sign up.
Gambling Zone offers comprehensive information on the best gambling sites in the UK. Discover the top places to play slots, live games, and more in our expert guides.
