Bitcoin is a form of digital currency, that is produced by people by using complex algorithms. Unlike the traditional currencies such as dollars or euros, bitcoins are not printed on paper without using any traditional banking channels. In other words, bitcoin exists in digital wallets on the Internet. The digital cryptocurrency enables quick and cheap online payments, which has already started to revolutionize the gambling industry around the globe. There are a number of advantages of using bitcoin and the U.S.-friendly betting companies have already realized this.
Despite all the negative views about bitcoin, the truth is that the king of the cryptocurrencies continues to be on a roll for the gambling enthusiasts in the U.S. The online gambling market remains one of the most competitive. In order to earn a larger spot in the industry, more and more offshore gambling operators have started to embrace the highly-controversial cryptocurrencies. By fully adopting bitcoin, the online gambling operators attract the attention of more players. To do so, many U.S.-friendly gambling websites beefed up their incentives for the players to start using bitcoin.
America’s leading sportsbook BookMaker.eu reported a significant increase in the use of cryptocurrency during the past two years. On 5th January, BookMaker.eu, marketing manager John Milton told the reporters from Bloomberg Law that the sportsbook adopted bitcoin slowly, but surely. In an emailed statement, Milton explained that by the end of the last year, 42% of the sportsbook’s customers used bitcoin for deposits and 85% used the cryptocurrency to receive withdrawals of funds. It is interesting to note that the same sportsbook reported that only 10% of its customers used bitcoin for deposits and 8% used the digital payment method to receive withdrawals by the end of 2015.
Is it Legal to Place Online Sports Bets via Bitcoin
There are a number of reason for the bitcoin craze, including anonymity, no currency exchange troubles, security, speed and ease, low fees and many more. Ofir Beigel, general manager of 99 Bitcoins explained that bitcoin allows U.S. bettors to deposit funds online, which otherwise might be impossible due to federal regulations that prohibit online gambling operators from accepting credit card payments.
Speaking of its legality, bitcoin exists in the so-called deregulated marketplace as regulations have not yet been adopted in most states outlining its use. Governments around the world are still exploring the digital payment method, which was created almost a decade ago. As for the offshore gambling market in the U.S., a number of states outlaw the provision of offshore sports betting gambling activities within their boundaries. Under the 2006 Unlawful Internet Gambling Enforcement Act, the business of betting or wagering is illegal, but the law does not say anything about the individuals.
Despite the illegal nature of online bets in America, this did not stop Americans to place bets at offshore sports betting sites. Such restrictions only stimulate the illegal gambling market to grow exponentially. Rough estimation showed that the black market in the U.S. pockets $50 billion to $60 billion every year.