Online casino gambling in the U.S. is illegal in all but six states, kept in check by strict rules that make it tricky for users to move money in and out of regulated internet casinos.
But those rules don’t hold up so well when it comes to bitcoin.
Internet casinos that offer users a way to gamble using cryptocurrencies are booming, sidestepping regulations while operating and advertising with near impunity. Dozens of websites operating outside the U.S. now offer a way to quickly begin gambling, many with few checks on users’ backgrounds.
“This segment has exploded in a very short amount of time, and as a decentralized system, it makes it even more difficult to figure out how to go after them,” said Alex Costello, the vice president of government relations at the American Gaming Association, a trade group that lobbies on behalf of U.S. casinos and registered sports betting companies.
“We are a highly regulated industry for good reason: anti-money-laundering concerns, responsible gaming concerns,” Costello added.
It appears that Bitcoin users have found a loophole that many are choosing to exploit. However, this is being taken very seriously in the states and we expect to hear more soon in terms of the long term response in tackling this soon.