Offshore gambling regulators embrace crypto-currencies

There can be little doubt that crypto-currencies like bitcoin have been good news for offshore gambling sites who can now make financial transactions with their players without the headache and expense of having to deal with U.S. banking institutions. Online gambling has also greatly benefited bitcoin because it has driven adoption of the new peer-to-peer payment network. This article by the "Off Shore Gambling Association" recently caught our attention because it gives a good overview of the current situation. Here are the main points.

• Both Antigua and Malta are embracing bitcoin and other crypto-currencies because they feel it will be beneficial to their economies.
• The Attorney General of Antigua & Barbuda is already drafting laws that would effectively legalise bitcoin.
• Bitcoin is pseudo-anonymous rather than anonymous, which means transactions can be traced on the open ledger back to the original owner or buyer. For this reason, they are not overly worried about money laundering.
• Countries like Antigua hope that gambling operators will be attracted back to their jurisdiction if they create a crypto-currency friendly business environment.
• Changes to the laws are unlikely to attract operators like Heritage Sports and BetOnline who are already accepting bitcoin and litecoin in other gambling jurisdictions.
• A number of sportsbooks are keeping an eye on the situation and would consider operating from Antigua if it meant that they could accept US-based gamblers again without prosecution.
• USA banks do not deal with banks from Antigua because of UIGEA but bitcoin does not require the cooperation of financial institutions in the United States.
• Some gambling regulators like the UK Gambling Commission are imposing overly burdensome regulation and taxes that make it hard for gambling operators to make a profit.
• The Prime Minister of Malta has been encouraging other European Union leader to accept bitcoin as a legitimate currency.
• Adopting bitcoin would also allow sportsbooks, casinos and poker rooms to attract players from countries like Canada and Russia who also have anti-gambling legislation.
• There are still critics of crypto-currencies in offshore gambling jurisdictions who feel that bitcoin is the currency of criminals and that they will damage their reputation by accepting it.
• Fluctuations in the bitcoin price remains one of the biggest obstacles in adoption because many operators are afraid too take on the risk of the price dropping dramatically.

 

In a recent interview, Calvin Ayre has chimed in saying that while gaming regulators will always have a part to play, bitcoin and blockchain technology has made them less relevant.