True or False: it's legal to be betting in crypto (Bitcoin) in the US.
We are starting a new rubric called Vrai ou Faux, which means True or false. So we are talking about some Notorious things that we found on the web or have taken from Casino or bookmaker websites and are trying to debunk the myths that have already been instilled in the public.
Our first issue is about a claim: it's legal to be betting in crypto (Bitcoin) in the US.
There's a popular theme that has been supported by online casinos that Bitcoin gambling is legal in the US. We have three arguments that we have found on so many crypto-casino websites that substantiate this claim.
The idea of this statement and the supporting arguments is that the truth has been intertwined with their manipulation about facts so it's not easy to tell right away because the statement has been crafted suchwise that it might be technically true but not true in principle.
So let's bring these arguments here.
- The first statement is that literally no federal law prohibits U.S citizens from gambling online.
- Second one is that the U.S may only restrict operators from accepting bets within their respective states but if an online casino is based in another country, for example, some remote island it is then legal.
- And finally, the third question is that U.S government restricts credit cards and the financial companies from taking money from Casino related transactions but if you use crypto (like Bitcoin) then you act legally.
So let's take them one by one. And the first is:
1. NO FEDERAL law prohibits U.S citizens from gambling online: is it true or false? FALSE.
Manipulative as it is, it is false in nature, though technically true.
It's not up to a federal government to decide regarding the respective citizens that reside in some US states. Instead, it is up to the local state governments, for example, the governments of Alabama or Alaska, etc to decide whether or not it is legal for their residents to embark on online gambling.
As you may see, the statement is technically true though fundamentally false because some U.S states like New Jersey, etc have adopted the codes that allow a regulated gambling from within their territories, which means they actually relate people that gamble online from within these territories notwithstanding their citizenship, etc.
These local statutes and regulations would relate how exactly it can be done in a legal manner, yet, however these states have allowed the gambling they would put some serious restrictions on the process of Licensing of this casino operators and also, surprisingly, licensing of the affiliate sites, so it is legal to play there but only legal to gamble where the casinos will have obtained the local state licence.
And the local States government has only a small list of operators who have been given the licence. It's a small up to probably 10 biggest ones in the U.S states and it doesn't in any way relate to those crypto casinos. So, this statement above is nothing but manipulation.
The second question reads that:
2. The government only restricts online casinos to accept bets inside the states: True or false?
It means that it exempts operators that run a server in some remote island and from there solicit the US players having their hardware, software and financial gateways located elsewhere.
FALSE. This statement is false in nature because obviously every regulation in the U.S states concerns operators that make themselves available to the people that reside in a respective state and territory, so it means that it is not really important where a physical server is located.
And it's even a wrong question to ask because the regulation hasn't been put towards the 'locale' of owners of the software or hardware but where the business takes place - to people who become clients and who reside in a particular state.
So it's false in nature and there's even a wrong object of Regulation.
3. The U.S restricts banks and credit card companies from making Casino-related transactions but luckily the Bitcoin payments are neither one nor another obviously, so it's legal to use them for gambling. True or False?
FALSE. Yes, it is true that U.S regulation would restrict Banks, Financial companies, etc from making Casino related transactions and it is also true that Bitcoin is neither of them. The status of Bitcoin has not been regulated in the U.S: it is neither security, nor currency right now as of 2023. So it's not clear to the regulator what it is exactly, but it is clear that it's not a bank or a credit card company.
The statement is seemingly true but the final element of thereof which is: "this is why it is legal to accept it as a means of a gambling" is fundamentally not true because it doesn't matter what kind of payment or an Epitome of Value you employ to be able to gamble.
Most of the US states have been heavily restrictive on online gambling, some have been open to it lately and have made their legislation thereto, yet, the procedure for obtaining a licence is quite strict, only the biggest ones obviously have had this state
sanctioned licences and no matter what kind of currency do you use (obviously, they simply don't have Bitcoin) so you just these casino websites are not any other.
So, it brings us to the idea that all the three statements from crypto gambling websites are fundamentally UNTRUE though they seem to make sense. If you like my ideas here, please, submit your comments. Maybe you have other questions to ask about crypto gambling in the USA or as well you have my email here.