How does Bitcoin casino work


What is a Bitcoin casino

The popularity of Bitcoin as a digital currency has allowed the new economy to flourish in parallel with existing traditional money tied to centralized banks. Bitcoin transactions continue to gain popularity. This made it possible to create a new arena for gambling, gaming and lotteries – through online casinos powered by bitcoins.

Bitcoin is the world’s most popular digital currency (cryptocurrency). Some online casinos operate exclusively on bitcoins, while others offer Bitcoin as an additional alternative to traditional currency.

There are more and more such casinos. They operate throughout the world, although they must comply with local laws. Thanks to Bitcoin transactions, these casinos offer many options for players who can spend their bitcoins on:

  • Casino games
  • Gambling
  • Sports betting
  • Online lotteries
  • Spread betting

 How does a Bitcoin casino work

Software remains the foundation of any online gambling project, the same goes for Bitcoin casinos. Many popular Bitcoin casinos with a large user base are based on their own gaming software. Other sites buy or rent it with the ability to customize and add unique features.

The software controls the game with minimal human intervention. In games where you need to recruit a certain number of players, the software acts as a dealer (holds the game). In connection with the digital business concept, Bitcoin casinos are not easy to convince players of the honesty of their activities. Most of these casinos try to earn trust by revealing the principles of the operation of program algorithms. Others manage to build a reputation through recommendations or unique content.

Why Bitcoin casinos are becoming more popular

Anonymity remains the main advantage for users (any transaction and even the cryptocurrency founder himself, known under the pseudonym Satoshi Nakamoto).

Most sites offer uncommissioned transactions and do not limit their number, while in a casino with a regular currency this is not practiced.

The digital nature of this online business gives continuous global access to a large number of players.

Since online games go beyond the control of the authorities, in many of them the rules have been changed. Such variations are unacceptable in legal online casinos with traditional currencies, and this has become one of the main reasons for the popularity of Bitcoin casinos.

Why are Bitcoin casinos under scrutiny

Traditional online casinos are subject to regulation. Payments in regular currency allow you to track and identify individual players, dealers and operators. In the case of bitcoins, this is not.

Since Bitcoin transactions are exclusively digital, checking them is not so simple. For example, what is the guarantee that the cards were shuffled and dealt honestly in an online card game? In addition, if the player’s anonymity is maintained because he pays with digital currency, an honest business becomes even more dubious.

In many Bitcoin casinos, you need to enter a minimum of information about yourself (often limited to an email address and login), there is no verification by age, location or other details. Gambling is prohibited in many countries, and it is even more difficult to regulate and control Bitcoin casinos on a global level.

All of the above puts the authorities in a difficult position, because the new parallel economy is spreading rapidly. And although digital currency systems have many advantages, in the casino context they create a lot of complex tasks.

The legal aspect of Bitcoin casinos

The nature of Bitcoin transactions and the above reasons make Bitcoin casinos illegal in the USA. Most legal Bitcoin casinos are located outside of America. Interested users from all over the world (including a large base of American players) anonymously go to these sites, as a result of which it is difficult for the authorities to monitor, control and legalize transactions. The lack of open information about such an anonymous business complicates the collection of data necessary for the implementation of the rules.

Casino Impact on Transactions

Due to lack of information, it is difficult to assess the impact of Bitcoin casinos on the Bitcoin currency itself. One article wrote: “The launch of the gaming site in April 2012 increased the total number of daily transactions by almost five times.” This gives an idea of ​​how anonymous the world depends on gambling.

The reality is that Bitcoin casinos are steadily receiving more and more transactions. This speeds up the use of bitcoins.


Regardless of the type of transactions used – traditional or digital currency – casino gambling has always been a subject of discussion from the point of view of ethics. Add transaction complexity here, and the activities of a Bitcoin casino become even more incomprehensible. And although it is always very easy to lose your head when an opportunity arises for easy money, users should be aware of the legal aspects, difficulties and risks.

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