If you have been in the gambling industry for a while, you would understand that many casinos have different rules and policies about money coming in and coming out. Most of the time, deposits and withdrawals are free of charge, but it is also not unusual to see casinos charging anywhere between 3% and 5% of the transaction cost if you withdraw. The reason behind this charge is that the casino has to pay a payment processor, and this cost is then passed on to the consumer or the player. But today, players can make deposits not only with legal tender but also with bitcoin.
If you read online bitcoin casino reviews like the bitcasino.io review, you will find out that they do not charge money for withdrawal of either bitcoin or money transactions. However, you will pay a transaction fee to your wallet provider. This casino website, however, charges a fee if you use an exchange server for the bitcoin, specifically known as BTCXE. This is a payment processor that converts money into BTC and BTC into money. The fee for the transaction is 1.95% of the transaction cost.
The main thing that run an online casino is software. So while players are enjoying their games, there is a massive program that makes sure these games run smoothly, and that the financial transactions are legitimate and accurate.
In online Bitcoin casinos, the process for running a fiat casino is the same. The thing is, nobody really regulates cryptocurrency. With fiat or real money, the government has a lot of laws that govern online operators, and these laws protect consumers or gambling enthusiasts. These laws do not apply to bitcoin casinos. The challenge of the casino is to prove to users or players that all the games are legitimate, and that the results of the games are all random.
If you are playing in an exclusive cryptocurrency casino, you are not depositing cash. Instead, you will be depositing cryptocurrency, like BTC, to your casino balance through your bitcoin e-wallet. In some cases, casinos can accept legal tender or real money then convert it to bitcoin. It could be the other way around.
Here is how a BTC casino usually works:
- Players deposit bitcoins
- The bitcoin is converted by the casino into a legal currency like GBP
- Players use GBP to wager on games, and they will also win or lose in GBP
- Players can withdraw winnings in BTC after the legal tender is converted
As you can see, the amount of bitcoin you deposited may not be of the same value once you are ready to withdraw it. BTC is a commodity that fluctuates in price every second. Your £7,000 may have bought you one bitcoin today, but this same amount may not be worth one BTC tomorrow.
As mentioned earlier, there are casinos that will only allow you to wager in cryptocurrency. You deposit BTC, you bet BTC, you win or lose BTC, and you only withdraw BTC.
What Do Casinos Charge If You Use Bitcoin?
It really depends. There are many casinos today that do not charge anything if you deposit or withdraw bitcoin. A casino website is much more concerned about getting players through the door, so to speak. After all, all games are designed to give the house an edge.
On the other hand, there are casinos that will charge you a fee if you deposit and withdraw using cryptocurrency. The reason behind this is that whenever a casino receives BTC from anybody, the bitcoin exchange charges money from this casino. By the time you take out your BTC from your casino account, the same wallet or exchange that the casino uses will charge the casino a fee. The average transaction fee that you have to pay for every deposit or withdrawal is between 1% and 2%.
This per centage can be challenging, as not all bitcoin wallets use the same denomination. In terms of money, the smallest unit is one cent. With cryptocurrency, it can be 1 mBTC or 1uBTC. 1 mBTC is a millionth of a bitcoin, while 1uBTC is a thousandth. Depending on how the casino operates, the 1% or 2% will be based on either the currency value, mBTC, or uBTC.
Essentially, there is no such thing as free when it comes to transactions. If a gambling establishment does not charge you anything, it simply means that it is subsidizing the transaction costs, hoping to attract more players in the long run.
What Is the Role of Bitcoin in the Gambling Industry Now?
Many businesses today are now open to transact with the use of cryptocurrencies. They know that bitcoin is here to stay, and that it will take decades before the last unit is mined.
One problem that online casinos have is that gambling is illegal in many jurisdictions. The alternative of a player who is in a country where gambling is not permitted is to use a VPN. The thing is, many casinos do not allow the use of VPN. While players may register for a casino account, they may not be able to deposit money because it is the bank that will block the transaction. Now that there is BTC, the player can easily buy this commodity, and then use this commodity to play games.
The process goes like this if your county does not allow you to play in online casinos:
- You buy cryptocurrency
- You look for a casino that accepts players from your country
- You must ensure that this casino accepts BTC
- You deposit bitcoin
- You play and wager
- You withdraw winnings to your e-wallet
- You convert h bitcoin to cash
- You move the cash to your local bank account
While they may seem to be a lot of steps, they are the only way one can play in online casinos from a country that restricts online gambling. The impact of bitcoin in the online gambling community is clear: there will be more players who will be able to have fun playing because they now have a work-around on the legal limitations.
Is BTC Gambling Legal?
Yes, it is legal, but not in all counties. There are even countries where cryptocurrency is not allowed. However, the casinos themselves are legally operating within their jurisdictions. This is why you should check if the establishment is licensed or not.
While bitcoin and gambling are legal, there are many political forces today that seek to regulate cryptocurrencies. Their main point of contention is to protect consumers from these investments. If this happens, then the entire point of having cryptocurrencies will crumble. BTC was made for anonymity and decentralized money. If it is regulated, then there really is no other reason to use it anymore.
BTC gambling is mostly free of charges, but there are casinos that do not want to subsidize this cost. While charging you for transactions may put a little dent on your pocket, remember that the casino who charges fees do not get this money. Instead, the money goes to the payment processor or the bitcoin exchange that made the transaction happen.
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