Are Bitcoin casinos safe?
As more British casino gamers turn to online gambling thanks to its accessibility, a preference for extra privacy arose. This is satisfied by the Bitcoin casinos, which offer a high anonymity level to players, some even offering full anonymity. As tempting as this may sound, a question remains – are Bitcoin casinos safe? Let’s dive into how these work, what they can offer in terms of safety, how they stand against regular casinos, and what you should pay attention to before playing!
How do Bitcoin casinos work
The fast-growing popularity of Bitcoin managed to start an entire new cryptocurrency-based economy, parallel to the fiat currency-based one. This has opened many doors for all sorts of businesses to flourish using the power of this new type of currency. The gambling industry could not have missed the opportunity to cater to crypto enthusiasts, so many casinos started offering a Bitcoin payment option. However, some went even further and created brands that worked exclusively with Bitcoin, which turned out to have an audience ready to join and play.
The number of such platforms is continuously increasing, but some players still do not know much about them. If you wish to join a Bitcoin online casino but do not have all the information you need, you’ve come to the right place.
A Bitcoin casino may operate with only Bitcoin available as a payment method and base currency, or it could also offer other payment options that work with traditional money. They come with customer support and a website layout identical to the one you can find on any other virtual casino, so you will not have to adjust to any new things.
Unique game collection
A real difference appears when it comes to games – Bitcoin casinos often run their own in-house games software. This means that they often create their own games instead of purchasing or renting games from software developers. However, some do offer the latter options as well. In these cases, they sometimes customize the games to be able to provide unique features to their players.
The software is entirely in charge of running and conducting the games with minimal human intervention. This also happens for table games in which a human dealer is usually required. The software takes on the role of the table dealer.
Registration and KYC – optional or mandatory?
While regular online casinos require the registration and the KYC processes to be completed by every customer, Bitcoin casinos function differently.
The registration process usually asks the customer for personal information such as phone number, address, and full name. This may not sound like too much for some players, but the KYC process will ask for in-depth information, which they will require proof for. This often includes:
- A photo or scan of an ID card, drivers license or passport;
- proof of address – a utility bill or bank statement;
- proof of funds – trust fund papers, pension, dividends, and so on.
In some cases, players even have to talk on the phone with the casino team to confirm everything or join a video call to prove they are not using false information.
When an increasing number of casino games enthusiasts expressed concern about the amount of personal data they shared with the gambling platforms, Bitcoin casinos offered a more relaxed approach. They did this by eliminating the KYC process, and some even changed the registration, only requiring a password and an email.
Are Bitcoin casinos safe for players in the United Kingdom?
The safety of Bitcoin casinos has been discussed many times, and while some gamers do not believe in it, some are very comfortable using these platforms for a long time now. However, just as for regular casinos, not all platforms are safe and legit, so it is essential to know what to look for.
Are Bitcoin casinos legal in the United Kingdom?
Bitcoin casinos’ legality in the UK is the most important aspect when talking about safety, and the answer is YES. The Gambling Act of 2005 deemed real-money gambling legal if a competent authority licenses the operator. This includes Bitcoin casinos as well.
Therefore, a Bitcoin casino with a license is entirely legal in the UK. Of course, a United Kingdom Gambling Commission license would be preferred, as it is also one of the strictest when it comes to safety. However, there are not many Bitcoin-exclusive casinos that managed to obtain this license, mostly because of the authority’s strict rules regarding money laundering. Still, they have obtained licenses from other, less stringent authorities that allow them to function.
The good news is that you can still go for famous casinos that offer both Bitcoin and other payment forms. There are many of these fully licensed by the UKGC as well as other trustworthy authorities.
Bitcoin – the safest payment option
Bitcoin payments are a lot safer than classic banking methods because they rely on blockchain technology. This is similar to a vast database that is entirely open and public and does not have a central location, which means it is not vulnerable to hackers.
When a transaction is made, it is fully encrypted and verified multiple times at different points on the network. The private keys that are used in the transactions are very lengthy and hard to decode.
Bitcoin payments will not appear on any bank statement, which is excellent for players who wish to be private about their gambling.
Are Bitcoin casinos’ games rigged?
As you may already know, software developers also need a license to create games. They obtain this license if their games are proven to be fair and functioning on a Random Number Generator. Therefore, when an online casino offers games from a well-known software provider such as Microgaming or NetEnt, players already know these games are legit because the creators are fully licensed and regulated. This, of course, does not apply to in-house games, which many Bitcoin casinos have.
In order to prove their games are completely safe, many Bitcoin casinos offer Provably Fair technology. This allows players to test the games themselves and see that they are fair. This technology uses an algorithm and cryptographic hash in order to allow online casino players to verify each result and make sure the casino is fair. Here is how it works:
- The server creates a random secret seed and then hashes it (transforms it into a series of numbers and letters then sent through an algorithm);
- The server then sends the hash to the player;
- When the player receives it, they add another random seed that they have chosen to it (this offers the player control over the secret seed);
- The two are then combined;
- The service operator ultimately reveals the original seed so the player can then verify it with the hash.
Bitcoin casinos – advantages and disadvantages
Fewer games available
Not many casinos offer Bitcoin
Low or no fees
Withdrawals are sometimes processed manually
Bigger bonuses and promotions
Like any other thing in the world, Bitcoin casinos come with both advantages and disadvantages, and it is your decision if the pros outweigh the cons. However, for a better understanding of what these casinos offer and what they lack, let’s discuss each aspect so you can make the choice that best suits you!
Transactions speed and fees
Bitcoin transactions are notoriously faster than regular payment options. We all know that banking methods are relatively slow because the bank has to verify each transaction. E-wallets are a lot faster, but Bitcoin transactions are almost instant.
However, some Bitcoin casinos manually process, verify, and approve withdrawal requests as a security measure. In these cases, the cashouts may take as long as they would if you were to use a debit card.
Fees are also significantly lower for Bitcoin transactions, and in some cases, there are no fees, and you have to pay no tax. Some casinos may impose their own fees, which is why you should check the Terms and Conditions section before joining.
While regular casinos can offer thousands of games from various software providers, Bitcoin casinos are often unable to do that. Bitcoin-exclusive sites put at the players’ disposal games created by their own developing team, and the number is never impressive.
The good part is that there are famous online casinos with a vast game collection, and they offer Bitcoin as a payment option. However, they do so without skipping the registration and KYC processes, as anonymous Bitcoin casinos do. Therefore, in these cases, you will have to choose between full anonymity and a massive variety of games.
You can avoid the amount of personal information you have to provide a regular casino with if you decide to play at a Bitcoin casino. Some of them require only an email and a password. Not having to send any scans of personal documents, provide your address, and even the fact that the payments are entirely untraceable might be precisely what you were looking for. If it is, then the Bitcoin casinos are the ones that offer you these.
Bonuses and promotions
Bonuses you can claim at Bitcoin casinos are sometimes significantly higher than the ones regular casinos have. Some platforms offer 1 to 5 BTC to new players along with free spins. This is a huge bonus, considering that one Bitcoin’s value is tens of thousands of Pounds.
Bitcoin’s ever-fluctuating value might pose a real issue for you if you decide to use Bitcoin casinos. Its value changes from one minute to the other, which means that in some cases, you may end up with more money than you’ve actually made, and in other cases, with less. This can also apply to bonuses as 1 BTC may be a lot less tomorrow than today, which means that your bonus’ value changes every minute if unused.
How to make sure you are safe when playing on Bitcoin casinos
Now that we have discussed how Bitcoin casinos work and what are their advantages and disadvantages, you should know how to make sure the platform you pick is the safest one. This is needed mainly because many casinos out there are not legit, and this happens very often with Bitcoin casinos, as they are very easy to set up.
Here’s what you need to do to ensure you will have a fair experience:
- Look for licensed casinos that also offer Bitcoin payments;
- If you choose an anonymous Bitcoin casino, look for their Provably Fair option;
- Read casino reviews before joining, find out about other players’ experiences;
- Set a budget and do not go over it;
- Pay attention when you make transactions, as you cannot reverse them.
Bitcoin casinos are not a novelty, as they have been around for years now, but many aspects about them are still new to gamblers in the United Kingdom. Cryptocurrencies are gaining more popularity every day, and we expect to see more online casinos accepting Bitcoin and other cryptocurrencies. This is great, as they do offer a fair and fun experience as long as you make sure everything is safe and the website is legit. Use the information in this article to guide you when you decide to give Bitcoin casinos a try!
The information provided in this article comes from the following sources: