How Does Crypto Regulation Impact Online Gambling
Many nations are currently examining whether to regulate Bitcoin and other cryptocurrencies. Should this happen, the nature of both the crypto landscape and online gambling will change. Recently, the Northern Territory Racing Commission (NTRC) began consideration on whether to allow crypto for wagering on bitcoin casinos. This is a low-tier decision that will impact a limited number of online gamblers. However, what happens if crypto regulation occurs at a national level? How will this impact players, and what will it mean to online operators? Let’s take a look.
Not All Crypto Will Become Regulated
When considering the impact of crypto regulation, we have to look at what cryptos will be regulated. The reality is that, in many regions, only a select number of cryptos will become regulated. Bitcoin will certainly become the #1 regulated crypto worldwide. Following Bitcoin, we can expect stablecoins like Tether and USDC also become regulated due to their implied stability.
Beyond that, we can only expect a limited number of cryptos to pass regulatory tests. Furthermore, you should expect that only true “coins” will be regulated. In crypto, a coin is a crypto that has its own blockchain. Bitcoin, Ethereum, and even Dogecoin are considered coins. If a crypto does not have its own blockchain, it is considered a token.
Coins like Shiba Inu, Matic, and many others are classified as tokens and likely will not be allowed to be regulated. Once regulation starts being implemented globally, we expect many tokens to fail or become minor players in the crypto space.
The Face of Crypto Gambling Will Change
Depending on the level of crypto regulation globally, we could see drastic changes in the online gambling landscape. Currently, we see many online casinos that accept Bitcoin and other cryptos for online deposits. Some of these casinos will allow you to play online pokies with real money and other online casino games with your crypto.
However, regulation could change this. Take the United States as an example. In America, regulated cryptos will become regulated as securities. As such, those coins may become unsuitable for online casinos to accept for payment.
This will likely result in many crypto casinos accepting non-regulated currencies for deposits. Alternatively, online casinos may have to start using third-party processors to accept crypto. However, this would prove ironic as one benefit of using crypto is avoiding third-party processors.
Another alternative would be that we could see casinos moving to countries where crypto is unregulated. Regulatory bodies that reside in countries that don’t regulate crypto will become very popular for licensing. As such, pay attention to crypto regulation in regions such as Curacao, Isle of Man, and other countries that regulate Bitcoin online casinos.
Expect Major Changes in the Next Five Years
If you are one to pay attention to the news, pay careful attention to crypto news over the next five years. We are already seeing a lot of talk regarding crypto regulation in some countries, and we expect this to intensify.
For those in Australia, pay careful attention to the implementation of crypto into legal gambling options in the country. This will give you an idea of what lawmakers could be planning for future crypto regulation.
Note that we are not telling you to pull your crypto from online casinos. However, if crypto becomes regulated at online casinos in Australia, you will have plenty of warning and will have time to make the appropriate changes, if necessary. We hope that lawmakers will either forego the regulation of crypto or regulate it in a way that does not seriously impede the online gambling industry. Time will tell, but for now, pay attention to the news to keep updated on any regulatory issues related to crypto.
