Cryptocurrency Regulation – Is Bitcoin Gambling Legal in 2026?

Is Crypto Betting Legal in Asia?

China

In China, online gambling is illegal except in Macau and for state-owned national lotteries. Cryptocurrency is also illegal in China, with trading and mining completely prohibited. This combination makes online crypto gambling entirely illegal in China.

Despite this, some vice players continue to operate under the radar. However, the government works diligently to shut down such operations, as evidenced by a $55 billion crypto gambling case from 2023 that is currently on trial.

South Korea

South Korea is one of the pioneers in introducing a regulatory framework that provides legal guidelines for overseeing and managing virtual assets, including cryptocurrencies. It is governed by the Financial Services Commission (FSC), the primary financial regulator in South Korea.

The regulations have taken effect on July 19, 2024. However, gambling of all kinds is generally prohibited in South Korea under Article 246 of the Criminal Act, except for minor bets made for entertainment, certain government-authorized facilities, and the only legal casino, Kangwon Land Casino, in Gangwon Province. The government has been introducing stricter regulations to restrict pubs engaging in pseudo-gambling activities.

Furthermore, the Game Rating and Administration Committee (GRAC) has recently revoked ratings for blockchain games (play-to-earn games that pay winners in NFTs or cryptocurrencies) because blockchain technology allows easy exchange and transactions, which can lead to high speculative risk.

India

Crypto betting, in general, is not illegal in India. This is primarily because there are no explicit laws prohibiting online gambling or cryptocurrency in the country. Furthermore, crypto betting wins are taxable at a rate of 28% GST.

Previously, the Indian government took a strong stance against cryptocurrency and banned exchanges to prohibit the buying and selling of virtual assets completely. However, in 2022, the Reserve Bank of India (RBI) introduced a digital currency and lifted the bans. It has also become easier for citizens to purchase cryptocurrency through renowned exchanges like Binance, which has increased the demand and popularity of online crypto betting sites.

Singapore

The gambling sector in general is heavily regulated in Singapore. The Gambling Regulatory Authority (GRA) of Singapore has previously stated that it has no plans to legalize the usage of cryptocurrency in land-based gambling casinos and across various video games and social gaming platforms. However, the GRA has confirmed that online games of chance are technology-neutral, meaning cryptocurrency or blockchain games are not inherently banned as long as they abide by all regulations set forth by the Remote Games of Chance License Order 2022.

Additionally, the Monetary Authority of Singapore (MAS) has stated that it will introduce laws to deter citizens from engaging in cryptocurrency investments, similar to the restrictions placed on tobacco and gambling. For instance, credit cards and charge cards cannot be used to buy Digital Payment Tokens (DPTs). Furthermore, to have an investment portfolio of cryptocurrency, a class of “accredited investors” will be introduced, including individuals with more than $1.49 million in net personal assets. This, too, is restrictive, with only $149,000 permitted to be invested in cryptocurrency or 50% of their crypto holdings—whichever is lower.

Is Crypto Betting Legal in the United States?

New Jersey

New Jersey is a pioneer in legalizing online gambling, with regulated online casinos and sports betting platforms. Cryptocurrencies are recognized as a substitute for real and legally recognized currency and are taxable. However, their use in betting is not permitted under current regulations. The state strictly regulates all gambling activities to ensure compliance and player protection.

Nevada

Nevada, known for its robust gambling industry, permits online poker but has not broadly legalized other forms of online gambling. Cryptocurrencies are recognized as financial assets and subject to taxation, but using them for gambling remains primarily restricted.

Following President Biden’s Executive Order in March 2022 on “Ensuring Responsible Development of Digital Assets” and the remarks of Alessio Evangelista, FINCEN (Financial Crimes Enforcement Network) Enforcement Compliance Deputy Director, FINCEN has mandated that financial institutions, including certain gaming licensees, must handle cryptocurrencies and other digital assets in the same manner as fiat currency.

New York

In New York, online sports betting is legal and regulated. Cryptocurrencies are considered legal and taxable assets; however, the state has categorized them as assets rather than currencies. The state has not authorized the use of cryptocurrencies for betting purposes, maintaining a clear distinction between traditional financial instruments and digital currencies in the gambling sector.

Moreover, New York is one of the most strictly regulated cryptocurrency markets. Licensing requirements like BitLicense and high costs prevent most crypto organizations from choosing New York as a base of operations.

California

California does not have state-regulated online gambling, although there are ongoing discussions and proposed legislation. This is primarily due to existing agreements between the state and Native American tribes, which only permit the latter to operate in-person or land-based casinos in California.

Cryptocurrencies are legal as they are considered cash equivalents and are subject to taxation. Despite this, the use of cryptocurrencies for betting is not allowed under current regulations. The state continues to explore the integration of digital currencies within a regulated framework.

Wyoming

Wyoming is unique in the United States for allowing the use of cryptocurrencies in online betting. The state has embraced both online gambling and digital currencies, recognizing them as legal and taxable assets. This progressive stance makes Wyoming a leader in integrating cryptocurrency into the gambling industry, providing a legal framework for crypto betting.

Is Crypto Betting Legal in the Rest of the Americas?

Canada

Cryptocurrency is not recognized as legal tender in Canada. However, similar to India, income from crypto transactions is considered business income or capital gains and must be declared for income tax purposes. Gambling, in general, is a highly regulated industry in Canada. There is no prohibition on using cryptocurrency for betting, both online and offline. While the government warns its citizens of the risks and volatility associated with cryptocurrency and other digital assets, as long as the actions comply with general gambling laws, one can legally engage in crypto betting.

Brazil

Brazil recently announced the first stage of its four-part regulation rollout for the online casino and sports betting market. The rules stipulate that all withdrawals and prize payments from online gaming platforms must be made through electronic transfers. Operators cannot accept deposits in the form of bank slips, cash, cheques, or cryptocurrencies, as the regulation favours the use of Pix, Brazil’s national instant payments system. Therefore, while online gambling itself is not illegal in Brazil, crypto betting definitely is.

Argentina

Until recently, cryptocurrency was completely banned in Argentina. However, the Argentine Chamber of Deputies has recently passed the Omnibus Law, which allows citizens to declare cryptocurrency assets up to $100,000 without paying the previously imposed government fee. Still, the government has not legalized or authorized the use of cryptocurrencies or digital assets for gambling and gaming.

Mexico

Similar to India and Canada, Mexico does not explicitly legalize cryptocurrencies, but income from transactions involving virtual assets is considered taxable under relevant laws. Mexico does not allow the use of cryptocurrencies for gambling. According to the Gambling Regulations, the only currency that can be used for gambling is MXN, and therefore, any virtual currency or asset is prohibited. To sum up, Bitcoin gambling is not legal in Mexico.

Crypto Betting in Africa

South Africa

Usual gambling forms like land-based casinos, limited pay-out machines, bingo, and sports betting are governed by the Gambling Review Commission (GRC) and the National Gaming Board in South Africa. However, the regulatory landscape for crypto gambling is different. According to the National Gambling Act, any gambling must involve a payment (consideration) in the form of cash or a cash equivalent, which must be approved by the Board.

Although negotiable instruments, including certain lines of credit, are allowed under specific conditions, cryptocurrencies are not recognized as legal tender. Section 11 of the National Gambling Act explicitly prohibits interactive games unless authorized under law, which encompasses online casinos and crypto betting. In South Africa, cryptocurrencies are classified as a financial product under the Financial Sector Conduct Authority (FSCA). Exchanges and crypto trading companies must obtain a license from the FSCA, but cryptocurrencies themselves are not considered legal tender.

Nigeria

Nigeria had previously banned cryptocurrency trading altogether. However, in 2024, the Central Bank of Nigeria (CBN) seemed to change its perspective and lift its 2021 ban, indicating the issuance of licenses for trading virtual assets. However, no such licenses have been issued yet.

Forms of betting like sports betting and casino gambling are legal in Nigeria, but games of chance are illegal. There is no specific legal provision that regulates online gambling, nor is there one regulating online crypto betting. With the recent lifting of cryptocurrency trading restrictions and a new law that taxes gains from cryptocurrency trading, there is a possibility of future regulation for cryptocurrency in Nigeria. However, currently, bitcoin gambling is not legal in Nigeria.

Kenya

Kenya has legalized all kinds of gambling activities under the Betting, Lotteries, and Gaming Act. Online gambling is also permissible under this law, which provides licenses for three forms of gambling: sports betting, casino gambling, and lotteries. The National Payments Systems Act (NPSA) authorizes the Central Bank of Kenya (CBK) to regulate and monitor all payment systems and payment service providers in Kenya.

In 2015, the CBK issued warnings to the public regarding the usage of cryptocurrencies. However, the entity did not prohibit cryptocurrency trading. Therefore, Kenyans are allowed to buy and sell crypto. Cryptocurrency companies must acquire authorization from the Kenyan authorities, and in their absence, they may face suspension of business activities.

Crypto Betting in the Rest of the World

Australia

The online crypto-betting sector is a grey area in Australia. While traditional forms of gambling are regulated by the Interactive Gambling Act 2001, which prohibits most forms of online gambling and in-play sports betting, cryptocurrencies are not explicitly banned. This is primarily because cryptocurrency is viewed as an asset rather than a currency in Australia. Although one can access crypto betting sites in Australia, and gambling winnings are tax-free, it is very risky due to the lack of consumer protection and regulations.

New Zealand

New Zealand has a very interesting approach to gambling. Online gambling is illegal in New Zealand except for authorized providers, namely Lotto NZ and the TAB. However, New Zealanders can engage in online crypto betting offered by properly licensed offshore crypto casinos. The gambling sector in New Zealand is regulated by the Gambling Act 2003, which does not specifically prohibit cryptocurrencies from being used in online casinos.

Russia

Russia has a very strict stance on cryptocurrency and online gambling. All online betting activities are illegal for Russian citizens, and the government has announced that even poker rooms and online casinos will remain illegal in Russia. Cryptocurrencies themselves are also highly regulated, with restrictions on their use as a means of payment. This means double the layer of restrictions for online crypto betting in Russia, making it potentially illegal.

Conclusion

The global landscape of crypto betting presents a complex and evolving picture, with regulations varying widely from one region to another. While places like Wyoming and Kenya show a progressive approach by integrating cryptocurrencies into their legal gambling frameworks, others like China and Russia maintain stringent prohibitions.

The ambiguity and rapid evolution of regulations in places such as the United Kingdom and Italy highlight the ongoing challenges that governments face in adapting to new technologies.

As the popularity of cryptocurrencies continues to rise, the need for clear, comprehensive regulations becomes more pressing to ensure both the protection of consumers and the integrity of financial systems.