The Legal Status of Crypto Gambling
When it comes to legal status, crypto gambling falls into a grey area. While some countries have explicitly banned all forms of online gambling, including crypto-based betting, others have taken a more relaxed approach and allowed certain types of gambling to take place on these platforms.
In the United States, for example, the Federal Trade Commission (FTC) has stated that cryptocurrencies are not considered money under federal law, which means they are not subject to the same regulations as traditional currencies. As a result, some people believe that crypto gambling is completely legal in the US, as long as it is conducted on an offshore platform that does not comply with US laws and regulations.
However, it’s important to note that while there may be no federal law governing crypto gambling in the US, individual states have their own laws and regulations regarding online gambling. Some states, such as New York and California, have explicitly banned all forms of online gambling, including crypto-based betting, while others, like Nevada and Delaware, have legalized both online and brick-and-mortar gambling.
In Europe, the legal status of crypto gambling is also somewhat unclear. While there are no specific laws governing crypto-based betting, some countries have taken a more restrictive approach than others. For example, in Germany, online gambling is illegal unless it is conducted by licensed operators. However, there have been reports of crypto gambling taking place on unregulated platforms within the country, which raises questions about the legal status of these activities.
The Different Types of Crypto Gambling Games
Now that we’ve discussed the legality of crypto gambling, let’s take a closer look at the different types of games available on these platforms.
1. Predictive Betting
Predictive betting is perhaps the most well-known form of crypto gambling, and it involves placing bets on future events that are likely to occur in the blockchain world. These events could include things like the price of a particular cryptocurrency, or the outcome of a smart contract.
One of the most popular predictive betting platforms is Augur, which allows users to create their own prediction markets and place bets on various outcomes. Augur uses smart contracts to automate the betting process and ensures that all bets are settled fairly.
2. Casino Games
In addition to predictive betting, crypto gambling platforms also offer a range of casino-style games that can be played using cryptocurrencies. These games typically include traditional casino favorites like roulette, blackjack, and slots, but with a blockchain twist.
For example, the BetChain platform offers a range of games that are designed specifically for use on the blockchain, including a number of casino games and even a virtual sportsbook. All bets are settled using smart contracts, which ensures that they are processed quickly and efficiently.
3. Fantasy Sports
Fantasy sports have become increasingly popular in recent years, and crypto gambling platforms have also started to offer versions of these games. These games typically involve creating teams made up of real-life athletes and competing against other players to win points based on their performance on the field.
One example of a fantasy sports platform that uses blockchain technology is Sorare, which allows users to create teams made up of soccer players and compete in daily contests. All bets are settled using smart contracts, and users can buy and sell players using cryptocurrencies like ETH.
