Bitcoin Casino Licenses: What You Need to Know

What are Bitcoin Casino Licenses? Why are They Important?

The Bitcoin Casino Licenses are legal documents issued by a regulatory authority permitting the casinos to operate. These documents ensure that the casinos adhere to the rules and thus provide a safer environment for players. To obtain these licenses, the casinos have to follow certain rules, such as protecting the personal data of the players, maintaining financial transparency, following anti-money laundering laws, and keeping ethical standards, etc.

Having a licence ensures some sort of regulatory oversight and increases the credibility of the online casinos. The players are always recommended to check whether online casinos have any licences before gambling. These licenses are issued in the interest of users and are part of responsible gambling. They are meant to protect the user’s personal data, verify fairness in games, and ensure that such gambling platforms are not linked to criminal activities such as money laundering or funding any illegal activities. 

How to Check Whether an Online Casino is Licensed?

You can usually see the licensing information on the casino sites; they generally display the license number, the regulator’s name, and often a logo or seal at the bottom of the homepage itself. 

The most common licenses are issued by jurisdictions such as Curacao, Malta, the Isle of Man, Gibraltar, Kahnawake, and Anjouan (Comoros). Here is a brief description of each. 

List of Popular Licensing Jurisdictions

Curaçao

Curacao is a Caribbean island nation located just north of Venezuela and part of the Kingdom of the Netherlands. The license issue is administered by the Curaçao Gaming Authority (CGA). The casinos have to implement stronger AML/KYC controls and undergo regular compliance audits to get and maintain the casino licences. Nevertheless, it is considered less costly.

Malta

The license is issued by a regulatory body called the Malta Gambling Authority (MGA). Compliance with stricter norms, such as data protection and fairness, is required to obtain the license. Despite being costly and stricter, the license from Malta is highly regarded in the industry. 

Isle of Man

In the Isle of Man, the body called the Gambling Supervision Commission (GSC) is responsible for issuing the licence and regulatory oversight in the gambling sector. The body ensures that the license holders are compliant Gambling legislations and the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 (the Code). The license from the Isle of Man is also highly regarded in the Gambling Sector. 

Gibraltar

Gibraltar, a British Overseas Territory located at the southern tip of the Iberian Peninsula, is another country known for issuing reputable gambling licences for casinos.

Kahnawake

Located in North America, the Kahnawake Gaming Commission was founded back in 1996. The commission provides licenses to online casinos, poker games, sportsbooks, etc.

Anjouan (Comoros)

The Autonomous Island of Anjouan in the Comoros Union provides affordable licenses to online casinos, and they are known to be more crypto-friendly. 

Why Players Prefer Licensed Bitcoin Casinos: Benefits for Players

There are numerous benefits for players while gambling through an online casino that has a license. Here is a list of the benefits.

• Enhanced safety of personal data and funds: The licensed casinos are required to follow strict rules regarding personal data protection and that of funds. This offers more safety to the players. 
• Dispute resolution: The players can approach regulatory bodies if a dispute arises between the player and the casino. 
• Secure crypto transactions: Usually, the licensed casinos follow regulated payment methods, ensuring safer standards.
• Assurance of fairness: The casinos are required to follow fair gaming practices and undergo regular audits to get a license. Thus, players can be assured of no manipulations in outcomes. 

Risks of Unlicensed or Poorly Regulated Crypto Casinos

It’s important to understand the risks associated with unlicensed casinos. Here is a brief look at some of the major risks. 

• Higher probability for scams: The unlicensed casinos are more likely to involve scams, such as disappearing with players’ funds. 
• Unfair Gaming: Since these casinos are not subjected to any audits, outcomes may be rigged. 
• Lack of options for grievance redressal: The players can not seek the help of any regulatory body in case of a dispute.
• No KYC/AML Compliance requirements: Even though it seems convenient, such practices may expose the players to legal issues. 

Compliance Standards: KYC, AML, and Fair Gaming

The most common compliance standards required to get and keep online casino licenses include KYC, AML, and Fair gaming. The KYC rules require the casinos to verify the identity of the players by collecting relevant documents. This is to avoid underage gaming, fraud, or account misuse. 

The AML or Anti-Money Laundering rules are stipulated to avoid transferring any illicit money through online casinos. The rules require the casinos to monitor the transactions and report any suspicious activity. The ‘Fair gaming’ ensures that the outcomes are truly random and unbiased. 

The Bottom Line

The licensed gambling sites offer better safety for players. Nevertheless, it is worth noting that there are inherent risks associated with gambling. It can be addictive, cause financial loss, and emotional distress. Hence, the players are recommended to play responsibly, set limits, and choose platforms that are licensed to minimize the risks.