Bitcoin casinos have been attracting some attention lately.
How do I know?
Well, just have a look at the trend for yourself…
As you may see from Google Trends, interest in the search terms such as ‘bitcoin casinos‘ and ‘crypto casinos‘ have been rising over time, with spikes in the ‘interest’ barometer clearly correlated with movements in the underlying price of bitcoin.
This could suggest that crypto investors and traders who have made lucrative gains on rising crypto prices may be looking for alternative ways to multiply their crypto earnings.
Regardless of whether you have made money investing or trading crypto if you are interested in bitcoin casinos then take the time to read this FREE guide from top to bottom as you will learn how to avoid common pitfalls and scams as well as how to gamble more intelligently with a disciplined mindset and an effective strategy that incorporates crypto staking.
Disclaimer: All of the content written on CoinMarketExpert is unbiased and based on objective analysis. The information provided on this page should not be construed as an endorsement of cryptocurrency, a service provider or offering and should neither be considered a solicitation to gamble, buy or trade cryptocurrency. Gambling and cryptocurrencies carry substantial risk and are not suitable for everyone. No representation or warranty is given as to the accuracy or completeness of this information and consequently, any person acting on it does so entirely at their own risk. See further disclaimer at the bottom of the page.
Table of Contents
⭐ Types of Bitcoin Casinos
– centralized bitcoin casinos
– decentralized bitcoin casinos
⭐ Advantages of a Bitcoin Casino
– Bonuses and Promotions
⭐ Choosing a Safe Bitcoin Casino
– Valid Gambling License
– Game Providers
– Third-Party Audit
⭐ Evaluating a Bitcoin Casino
– Third-Party Validation
– Bitcoin Casino Bonus Conditions
– Payments: Deposits and Withdrawals
– Customer support
– Responsible gambling
⭐ Bitcoin Casino Staking
– Crypto Staking barbell strategy
Types of Bitcoin Casinos
Broadly speaking there are two types of bitcoin casinos. There are centralized and decentralized bitcoin operators and the difference is quite simple.
Centralized Bitcoin Casino
A centralized bitcoin casino is controlled by a third party that has full control over your account.
Decentralized Bitcoin Casino
Then you have decentralized bitcoin casinos that are built using blockchain technology with full control of the account remaining with you as the user. Decentralized crypto casinos are referred to as blockchain casinos.
Advantages of a Bitcoin Casino
Here I discuss the difference between traditional online casinos and blockchain-based bitcoin casinos.
I have seen articles on numerous crypto websites take a biased view, depicting bitcoin casinos as the force that will wipe out the seemingly ‘nefarious traditional online casinos that hide and steal money from their players‘.
However, that view doesn’t carry any merit when it comes to online casinos holding a valid license from a reputable jurisdiction. I will explain more about licensing and regulation in the section below which discusses how to choose a safe bitcoin casino.
Certain critics may also argue that traditional casinos require their customers to provide them with private and personal information, which can be risky. However, such data is required for anti-money laundering compliance and to enforce responsible gambling policies.
Certain casino operators (at least the legitimate ones) use some form of machine learning and AI algorithms to detect anomalous gambling behavior, intentionally locking out players that engage in abusive gambling behavior – for their own good! Every decent online casino must take responsible gambling seriously. If it doesn’t, then run for the hills!
As I see it, blockchain-based bitcoin casinos have three major advantages:
I will discuss this in more detail below.
The main advantage of a blockchain-based bitcoin casino is that it is completely transparent. All wins and losses can be checked on-chain.
Why is it important to check gaming data you may be asking?
Certain regulators prescribe that casino games must pay a certain percentage of revenue back to the player. Generally, every automatic game (e.g. slots) should be programmed to return between 80% to 99.9% in the form of prizes to players. Of course, the casino gets to keep a portion of revenue whilst the majority is redistributed to their players.
Many countries have strict licensing regulations imposed on casinos, with certain jurisdictions prescribing a specific range for Return to Player (RTP). However, it is not easy to check the RTP for certain games whilst on the platform of a traditional online casino operator because the data is not always publicly available, and if it is available there is usually a lag.
However, with a blockchain casino, it is possible to check the RTP (and numerous other interesting game statistics) for yourself. Certain blockchain casinos will even show you the RTP in real-time for each programmatic game that is available on their platform. This is helpful to you as a player because you would obviously favor slots with the highest RTP.
I compare payments made through blockchain-based bitcoin casinos and traditional online casinos from various angles.
a) Deposit and Withdrawl Time
Blockchain-based bitcoin casinos
Deposit and withdrawal times for blockchain-based bitcoin casinos depend on the token and the blockchain network that it operates on as well as the amounts that are transacted. As you already know by now, all cryptocurrency transactions must be verified on the blockchain and these transaction verifications require a certain number of confirmations.
Since cryptocurrency miners verify transactions in priority of the higher fees first, the transaction confirmation time will depend on the transaction size. This means that smaller-sized transactions (that result in a smaller fee to the miner) will usually take longer to verify than transactions that are much larger in size.
On average, blockchain transactions are verified within 10 minutes although they can even take a few hours to be confirmed. Whilst this may be a little frustrating for you to wait for your funds to be deposited at a bitcoin casino, it is much more convenient for withdrawals since traditional online casino transactions can take up to 5 business days to be processed!
Traditional Online Casinos
Deposits made via fiat currency on traditional online casinos are processed instantaneously whereas withdrawals made through card and bank transfers can take up to 5 business days to reach your bank account. Therefore, when it comes to withdrawal speed, bitcoin casinos are the clear winners here.
Both traditional online casinos and blockchain-based bitcoin casinos may offer instant withdrawals, although this service may be chargeable so always pay attention to the terms and conditions.
b) Transaction Fees
Blockchain-based bitcoin casinos
Blockchain-based bitcoin casinos do not charge a transaction fee for deposits and withdrawals made in cryptocurrency. However, if you are exchanging fiat to crypto you will most likely be hit with a fee from your crypto exchange or wallet anyway so make sure you take this into account as well.
Traditional Online Casinos
Traditional online casinos charge a fee on fiat transactions. However, certain online casinos will offer free deposits and hit you with a transaction fee upon withdrawal. Transactions made via fiat currency are typically charged at a rate of 2.5% on average.
c) Deposit and Withdrawal Limits
Blockchain-based bitcoin casinos
Blockchain-based bitcoin casinos generally do not impose limits on the maximum amount that you can deposit and withdraw although I have noticed a few casinos that do impose limits recently, so pay careful attention to the fine print.
Traditional Online Casinos
Most traditional online casinos impose a maximum amount that you can deposit and sometimes withdraw. Always check the FAQ sections or terms and conditions.
3. Bonuses and Promotions
The welcome bonuses offered by traditional online casinos to first-time players typically vary from $50 to $1000. On the other hand, most bitcoin casinos will offer welcome bonuses that are substantially higher, sometimes rewarding players with up to 5 BTC or more! At the time of writing, 1 BTC was worth approximately $40,000.
But before getting too excited, read the section below called bitcoin casino bonus conditions, which describes the key terms and conditions that are usually attached to casino bonuses.
Choosing a Safe Bitcoin Casino
In this section, I will walk you through a checklist of items that you should look out for when trying to identify a safe bitcoin casino operator as it is without a doubt still the wild west out there!
Regardless of how genuine the site of a bitcoin casino site may appear, always do your due diligence and use some good old fashion common sense without ignoring your gut instinct. If something is off or doesn’t feel right, immediately move on.
Valid Gambling License
Regulators play an important role in policing casinos, ensuring they operate in a compliant manner. Regulatory entities periodically carry out extensive checks on every licensed casino operator to ensure they are compliant with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) policies and procedures. Also, depending on the jurisdiction, it is mandatory for casinos to be audited by a reputable third-party specialist to ensure there are no conflicts of interest between the operator and its players, such as verifying that the game algorithms are not rigged in favor of the casino.
Bitcoin casinos that operate without a valid gambling license are scams! If you are going to gamble, always choose a bitcoin casino that holds a valid gambling license from a reputable jurisdiction because if you do get lucky and win large sums of money, an unlicensed casino operator can just refuse to give you the payout.
The strongest gambling licenses are obtained from jurisdictions within the European Union. The UK, Gibraltar, and Malta are highly regarded due to the stringent compliance requirements imposed by regulators on casinos to receive and maintain their gambling licenses.
The vast majority of bitcoin and cryptocurrency casinos hold Curacao gambling licenses, which is not considered to be a blue-chip jurisdiction. The license fees in Curacao are low when compared to the majority of other jurisdictions. Furthermore, it only takes around two weeks to obtain a license in Curacao and the regulation is not considered to be as stringent. For instance, the regulator in Curacao does not intervene in disputes between players and casino operators so, from a player’s perspective, a license from Curacao provides very little protection!
Of course, this isn’t to say that all bitcoin and cryptocurrency casinos that are licensed in Curacao are unsafe. On the contrary, there are plenty of safe and respectable gambling sites licensed in Curacao. However, bitcoin and cryptocurrency casinos licensed in Curacao must build their own reputations the old-fashioned way.
Check whether a bitcoin casino operator has a valid license
If you want to find out whether an online casino or bitcoin casino holds a valid license then the first thing you need to do is go to the operator’s website and look at the bottom of the page. There you will usually find the details of the type of gambling license an operator has from a particular jurisdiction.
But just because a bitcoin casino shows that it has a license (on its website) does not mean it really has one. Take the time to do some passive due diligence!
If you have some time on your hands, you may easily check whether an online casino holds a valid license. This can be done by visiting the licensee registrar of the various regulatory bodies that oversee gambling in a particular jurisdiction.
Here’s a brief list below:
|Popular Gambling Jurisdictions||Licensee Registrar|
|United Kingdom||Gambling Commission|
|Malta||Malta Gaming Authority (MGA)|
|Gibraltar||Gibraltar Gambling Commission (GGC)|
|Alderney||Alderney Gambling Control Commission|
|Cyprus||Cyprus Gaming Commission|
|Isle of Man||Gambling Supervision Commission|
|Curaçao||Curaçao Gaming Control Board|
Licensed bitcoin casino operators will use the services of established third-party gaming software providers such as Playtech, Microgaming, NETENT and Evolution Gaming just to name a few. These companies develop casino games that bitcoin casino operators subscribe to and offer to their players, and in so doing eliminate the possibility of illegal tampering.
It is always a good idea to see whether a bitcoin casino operator is using the games of a reputable software provider to avoid becoming a victim of illegal tampering, which could happen if the online game that you are playing has been developed in-house by the casino itself or by an unknown gaming software provider.
A respectable gaming software provider will always conduct their own due diligence on their potential client, i.e. the bitcoin casino operator, in order to safeguard their own reputation. It stands to reason that a software provider would never agree to do business with a bitcoin casino that does not pass their own due diligence. Therefore knowing that a bitcoin casino has games from respected game software providers adds an extra layer of monitoring.
To obtain a casino gambling license from the UK Gambling Commission or Malta’s MGA, bitcoin casino operators would need to agree to be regularly audited by a specialized third-party organization such as eCOGRA or TST (Technical Systems Testing) which is a subsidiary of Gaming Laboratories International (GLI). These auditing companies regularly conduct thorough investigations on online casinos and their games to ensure safety and fairness towards players.
Certain gaming licenses make it mandatory for casino operators to perform regular third-party audits. This is why it is so important for you to know the jurisdiction of where a bitcoin casino has been licensed.
From a player’s perspective, bitcoin and cryptocurrency casinos that are regularly audited may have peace of mind when playing games, but at the same time just because an online casino is not audited doesn’t necessarily mean that it is fraudulent.
Evaluating a Bitcoin Casino
Now that you understand how to find a safe bitcoin casino, how do you go about evaluating it?
In addition to going through the key requirements identified above, which explain how to choose a safe bitcoin casino, I have also outlined 5 important points for you to check when evaluating a bitcoin casino.
1. Third-party validation
You may want to check social media comments on Reddit and perhaps Twitter, Facebook, and Telegram. You may also want to search for opinions on Trustpilot as well as see what employees have to say about the bitcoin casino by checking websites such as Glassdoor. These combined initiatives should provide you with a very good overview of the bitcoin casino that you are preparing to play games on.
2. Bitcoin Casino Bonus Conditions
Bitcoin casinos offer bonuses to incentivize new players to sign up and play. Always make sure to read the terms and conditions concerning bitcoin casino promotions and welcome bonuses very carefully. I’ll explain why this is important in a moment, so keep reading.
This section teaches you what to look out for when evaluating the bonuses offered by bitcoin casinos.
Make Sure you Activate the Casino Bonus
Do not make the mistake of assuming that the bitcoin casino bonus will be awarded to you automatically.
It really depends on the bitcoin casino operator. Sometimes the bonus is awarded to you automatically (assuming you have satisfied the wagering requirements) and sometimes you may need to manually activate the bonus in advance by either using a special code or toggle button in the dashboard.
Check the Bitcoin Casino Bonus Wagering Requirements
When you claim a bonus from a bitcoin casino, the money you receive is often paid in the form of bonus money as opposed to real cash. It is the same for free spins too, so any potential payouts (or casino winnings) you get when you use them are also paid in bonus money.
This bonus money is usually kept in a separate wallet and comes with a wagering requirement attached to it.
So here’s the thing you need to know. You cannot automatically withdraw the bonus money. In order to withdraw the bonus money that you receive, you will first need to satisfy the wagering requirements (and any other terms attached to the bonus.)
Many newbies, as well as seasoned players, have trouble understanding what a wagering requirement really means. A wagering requirement is an amount of money (typically a multiple of the bonus) that you must gamble through (i.e. wager) before being allowed to make a cash withdrawal.
Only once you have satisfied the wagering requirements, will your bonus money turns into real money that you can withdraw. I stress, if you do not meet the wagering requirements, your bonus money will not be converted into real money for withdrawal.
Even if your chosen bitcoin casino operator offers a casino bonus, you always have the right to not accept it if you don’t want it. All you have to do is opt-out or simply not claim it – although it is not recommended since the bonus boosts your chances of winning.
This is exactly how wagering requirements work for bitcoin casino bonuses.
Let’s say the bitcoin casino is rewarding you with $100 in bonus money when you make a deposit of $100. So in total, you get to play with $200 rather than $100, which increases your chance of winning.
Now let’s say there is a wagering requirement of 40x the bonus. This means you will not be allowed to withdraw any potential winnings until you have gambled the equivalent of $4,000!
$100 (bonus) x 40 (wagering) = $4,000.
⚠️ always check whether the deposit amount is included or excluded from the wagering requirements.
If the deposit amount is included in the wagering requirement, then you would need to gamble through $8,000!!
$100 (bonus) + $100 (deposit) x 40 (wagering) = $8,000.
Bitcoin casino welcome bonuses may be in the form of free spins, which you can use on slot games.
This is exactly how wagering requirements work for bitcoin casino free spins.
If you claim a free spins offer, you will normally need to work out the requirements based on how much you win. For instance, let’s imagine you have claimed 20 free spins with a 10x wagering requirement and you won $15 whilst playing.
$15 (Free Spins Wins) x 10 (Wagering) = $150
As you can see from the above example, the $15 you won has a 10x wagering requirement, which means you’ll need to complete wagering requirements of $150 before you can withdraw.
Check the Time Limits on Bitcoin Casino Bonuses and Free Spins
Bitcoin casino operators may impose a time limit on the bonuses and/or free spins. This means that if you do not use the bonus or free spins before a certain number of days the bonus or free spins will be removed.
Check the Game Contribution
Bitcoin casino bonuses will usually also have a game contribution condition. What this means is that not all games will contribute towards the wagering requirement. Table games are sometimes not counted towards the wagering requirements whereas certain slot games may count as 100% towards releasing the bonus. Always check the game contribution from the start!
This is exactly how game contribution works for unlocking bitcoin casino bonuses.
Let’s say you have a bitcoin casino bonus of $500 that you will withdraw after meeting wagering requirements of $1000.
The bitcoin casino has a game contribution of 100% on slots, and you gamble $10 on every spin for 100 spins. This means, in the end, you have gambled $1000 on slots, and the entire (100%) is counted towards your wagering requirement to convert your bonus money to real money that you can withdraw.
Let’s say instead of playing on slot games (with 100% contribution) you gamble your money on poker tables (with a game contribution of only 5%). In this example, you would need to bet $20,000 on poker games to satisfy the $1,000 wagering requirement since the game contribution is only 5%!
What this all means is that if you want to release your casino bonus of $500, then it would be better for you to just stick to those games that have the highest game contribution.
⚠️ Always look at the wagering requirements together with the game contribution otherwise you could be betting on games that do not count towards converting your bonus money into real money.
3. Payments: Deposits and Withdrawals
Deposit and withdrawal methods are important to evaluate. Naturally the wider the choice of deposit and withdrawal methods, the better it is for you.
It is most important for players to understand that deposit and withdrawal policies differ significantly between bitcoin casinos, therefore always make sure to investigate.
Each bitcoin casino operator will have its own rules for payments. Make sure you check the following:
1. deposit and withdrawal limits
2. verification procedures
3. accepted cryptocurrencies
4. deposit and withdrawal fees
5. deposit and withdrawal processing times
4. Customer Support
Any decent bitcoin casino will offer live customer support via chatbox on their website as well as a contact number, and an email address. You may occasionally find social media support too. The greater the availability of the different forms of support, the better it is for the player.
5. Responsible Gambling
Every decent bitcoin casino will have a responsible gambling policy and procedure. Certain bitcoin casinos will also have a self-exclusion option that allows a player to ban themself from gambling for a certain period of time if they feel they are becoming addicted to gambling.
Bitcoin Casino Staking
Crypto Staking Barbell Strategy
I am a big advocate of responsible gambling – that essentially means not gambling more than you can comfortably afford to lose.
Could crypto savings and staking be part of the answer to responsible gambling?
Certain hedge fund managers have been able to create asymmetric risk/return opportunities by applying what is known as a barbell strategy. This involves parking funds into interest-bearing securities that are deemed to be relatively low-risk and then utilizing the interest that is earned to trade high-risk assets that have the opportunity of producing outsized returns.
This strategy may be applied to gambling too.
A bitcoin casino player may want to consider the option of only gambling the interest that is earned from stablecoin savings or from crypto staking.
🚀 It is possible to earn an Annualized Percentage Return (‘APR’) as high as 12%-22% on certain stablecoin savings and staking accounts!
In the worst-case scenario, the interest that is invested is lost although the initial capital is still preserved. Alternatively, in the best-case scenario, the interest that is gambled produces material outsized material returns.
The strategy of combining crypto staking with gambling could be a sensible approach to responsible gambling since players can enjoy wagering on games and the thrill of getting lucky and earning material outsized returns without losing their original capital (since they would only be gambling the ‘interest’ portion earned through crypto savings and/or staking.
ALWAYS PLAY RESPONSIBLY
Playing online casino games responsibly is very important. All licensed casino operators have a responsibility to protect their players. If you are gambling money that you cannot afford to lose then that is a clear sign that you are addicted to gambling. If this describes your behavior, then inform the customer support of your casino operator immediately and ask them to exclude your player account.