UK Considers Allowing Crypto for Gambling

In a way, betting and cryptocurrency? have come of age together. Over the last decade, the popularity of online sports betting and casino gambling has skyrocketed, alongside the growth of cryptocurrencies and blockchain? technology. However, the UK has kept the two separated, preventing gamblers from making payments using crypto. But that could soon change.

The UK Gambling Commission is in the process of considering a measure that would allow licensed online casinos to accept cryptocurrencies as valid payment. Such a measure would be linked to a new regulatory approach to crypto by the Financial Conduct Authority (FCA). The FCA will have a new regime in October 2027, when the FCA will be responsible for the oversight of digital assets. This could open the door for crypto in gambling. 

The growing popularity of crypto has been a driving force for the UK to rethink its approach to crypto. Formal regulations by the FCA could also help to crack down on unlicensed operators. The current plan is for the FCA to spend the summer finalizing the exact crypto regulations. By the end of September, gambling platforms could apply to use crypto assets under the Financial Services and Markets Act. 

An Ideal Pairing

Not only have online gambling and cryptocurrency? blossomed at the same time, but the two industries are a good fit for one another. Crypto payments help provide an extra layer of security on financial transactions, which is key for gambling sites. Using crypto can also speed up deposits and withdrawals compared to traditional banking systems. Offering faster payments via crypto appeals to both current and prospective customers of online casino sites. Therefore, online gambling platforms can use crypto to attract new users.

Even without crypto being a payment option, online casinos in the UK have made huge strides over the last handful of years. There are dozens of operators, each offering large libraries of games and unique features. If they can legally offer cryptocurrency? payments, that’s just one more way online casinos will be able to stand out from competitors. For those who are online casino novices, Casino.com in UK offers reviews and comparisons of various platforms to help you find the right online casino.

Stop Black Market Platforms

Legally operating casinos stand to gain from the legalization of crypto as a payment method. Meanwhile, the driving force for this change from the perspective of the FCA and the UK Gambling Commission is to get a handle on illegal casino platforms. The Gambling Commission has noted an increase in the volume? of Internet searches related to crypto use at online casinos. As a result, customers are being led to unsanctioned platforms.

In recent years, the Gambling Commission has been forced to increase its efforts aimed at reining in offshore operators. Of course, enabling casinos to accept cryptocurrencies won’t stop those illegal platforms. However, since the promise of using crypto is a big factor in pushing users toward the black market, accepting crypto should help keep most people at regulated sites. The Commission has made it clear that offshore sites would still be illegal. Beyond offering crypto, many black-market platforms fail to meet FCA requirements in other areas, so offshore casinos wouldn’t immediately become legal once crypto is deemed an acceptable payment.

Risks to Consider

While many are celebrating the potential move to cryptocurrency? becoming legal at online gambling platforms, there are some risks to consider. After all, there are reasons why crypto hasn’t been allowed for payment at casinos all along. For starters, the speed at which transactions happen can make it easier for players to chase losses or develop a gambling problem. While most credible sites offer resources that explain how to bet responsibly, such measures aren’t always enough.

The use of crypto also creates other concerns and potential complications. The decentralized nature of blockchain? technology can increase the chance of money laundering and other nefarious activities. Likewise, the anonymity of crypto trading could make underage betting easier. There is also the issue of crypto price volatility. A player could make a profit at an online casino or sportsbook, but the value of the cryptocurrency? they use could change significantly before they make a withdrawal, depleting their winnings.

Needless to say, the FCA and Gambling Commission are aware of these concerns, weighing them against the concern of players gravitating toward illegal offshore sites where they can gamble with crypto. The need to keep users away from these platforms is likely to make cryptocurrency? a legal payment method at UK online casinos. However, the FCA is doing its due diligence to ensure that, if and when crypto becomes legal, its use is properly regulated.

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