Illegal gambling is one of the problems that is occupying the minds of a global society. According to a Transparency International study, in 2018 the illegal gambling market brought $400 billion in revenues. And we are now talking only about Asia. There is also marked a tendency of making illegal bets and playing in unregulated casinos using cryptocurrency as a payment option.
Expertise platforms like Online Casino HEX warn gamblers looking for online casinos with the best payout in cryptocurrency to be very careful – even the safest and reliable cryptocurrency options will not protect you from fraud.
There are two reasons for that: the increasing number of crypto payment systems and the fact that cryptocurrency is one of the safest and the most anonymous ways of making a deposit. We decided to try and figure out whether there is a tight connection between illegal gambling and cryptocurrency, and how the last may suffer from a bad reputation. Read the article to learn the details.
Read: The Basics of Cryptocurrency Gamblinb
Does Illegal Gambling and Cryptocurrency have a Tight Connection?
Every day thousands of players head to or similar platforms, find a gambling site to taste, and start playing to kill time and diversify the routine. However, there are also thousands of gamblers involved in illegal gambling which not only causes billion-dollar losses but makes it difficult to control the market.
According to Hong Kong Jockey Club, every year gambling generates over $500 billion revenues, 80% of which originate from Asia. It is estimated that Hong Kong City itself looses around $70 billion on illegal betting and the number continues to grow. In an attempt to solve the problem, authorities try to control the digital community and make cryptocurrency more transparent. To do that, the South Korean government recommended CoinOne, the biggest crypto exchange in the country, to be charged for illegal gambling and margin trading.
Different sources claim that 50-60% of Bitcoin transactions are conducted on gambling and it’s not surprising. Transaction fees are very low and often are completely absent. Payments are irreversible: when a Bitcoin is sent, it’s impossible to return it back, so gambling operators don’t have to worry about chargeback frauds. In addition, cryptocurrency is completely anonymous which is a great advantage for players who don’t want to show gambling transactions in financial history.
Gamblers are rather happy because cryptocurrency offers a safe and convenient way of making transactions without side interference. Especially when compared to bank payments which take days or even weeks to complete and have rather expensive fees. Moreover, some transfers via bank cards may be stopped without any reason. With cryptocurrency, players get complete freedom without any contingencies.
A Way to Ban Cryptocurrency
However, every problem has a downside and many experts believe that illegal gambling is only an excuse to fight cryptocurrency. Sulim Malook, the Bitcoin Lotto founder, is sure that illegal gambling in Asia has nothing to do with cryptocurrencies. He claims that local clubs partner with sports betting establishments and the market is gradually growing. He also adds that the majority of countries including China and India can open betting accounts even without crypto.
Moreover, there is only a limited number of casinos and sports betting sites that accept Bitcoin and fiat currencies are still preferable. That is why it is not right to say that illegal gambling can be somehow related to cryptocurrency. Most likely, Asian authorities are simply trying to ban cryptocurrencies and regain complete control over the market.
Will illegal gambling hurt the cryptocurrency market?
Even though the revenues from online gambling continue to grow not only in Asia but all over the world, cryptocurrency usage as a payment option remains insignificant because the number of casinos that accept it is rather low.
Licensed gambling sites accept money in countries where games of chance are legalized and the payment options are tied to regular banks. That is why it is unlikely that any time soon cryptocurrency will have a big share of gambling profits. And experts believe that the crypto industry won’t be impacted by illegal gambling or governmental accusations.
However, it is impossible to deny that the rates of illegal gambling are extremely high and can be considered a significant threat not only for local but global markets. Illegal operators take advantage of the latest technologies and uncontrolled online platforms to grow the business and make billion-dollar profits. It is already obvious that illegal gambling is a threat that may harm not only individuals and businesses but countries in general. And this process has nothing to do with cryptocurrency.