How Does Bitcoin Casino Operate?   

The increasing popularity of bitcoin as a digital currency allowed the new economy to exist in parallel with the traditional money, linked to central banks. Bitcoin transactions continue to gain the universal support. Such circumstances have enabled the new arena for gambling, gaming and lotteries through online casinos with bitcoins.

What is Bitcoin Casino?

Bitcoin is the most popular digital currency, also called cryptocurrency, in the world. Some online casinos work with bitcoin exclusively, while others offer bitcoin as an alternative to the traditional currency.


There is a growing number of such casinos. They operate across the globe, but have a liability to comply with local legislation. Bitcoin transactions allow casinos to provide plenty of opportunities for their customers, who can spend their bitcoins on:

  • casino games;
  • gambling;
  • spread betting;
  • online lotteries;
  • bets on sport.

Some popular bitcoin casinos are as follows:

  2. BITCasino.IO
  3. Cloud.BET

How Does Bitcoin Casino Work?

Software is the basis of any online gambling project, including bitcoin casinos. Numerous popular bitcoin casinos with a large client base have their own gaming software, while the others buy or rent systems that can be configured or supplemented by unique features.

Games are run by software with minimum human intervention. When the certain number of players must be accumulated in a game, the software fulfils the role of a dealer. Given the digital nature of bitcoin casino business, to convince customers of the fair system usage is not that easy.

Most casinos of this type try to gain trust by revealing principles of algorithms used in the program. Other build their reputation by means of recommendation or content uniqueness.

Poker is the most popular game offered by casinos bitcoin, while there is a large number of other striking games, lotteries and popular games variations, which are growing in number constantly.

Reasons for Bitcoin Casinos Popularity

Anonymity remains the main advantage for virtual currency users. Any bitcoin transaction or even the creator of cryptocurrency, known as Satoshi Nakamoto, are anonymous.

Most websites offer commission-free transactions that are not limited by quantity, while casinos with traditional currency do not operate on this principle.


Digital nature of this online business provides continuous access to a large number of players worldwide.

Due to the fact that online games are beyond government control, many of them make changes to their rules. Such variations are not allowed to legal online casinos using conventional currencies that became one of the main reasons for bitcoin casinos popularity.

Why are Bitcoin Casinos Kept Under Close Scrutiny?

Traditional online casinos are subjected to regulation. In case payments are made in usual currencies, players, dealers and operators can be tracked. The same is not true for bitcoin.

Bitcoin transactions, existing only in the digital format, cannot be checked so easily. For example, there is no any guarantees that cards during the game are shuffled and given away honestly. Moreover, if players’ anonymity is maintained merely because they choose to pay with digital currency, it is questionable whether such business is fair.

In casinos bitcoin the registration information is usually limited to email and login. Thus, age, location and other detail verification is not applied. Gambling is prohibited in many counties, but to regulate and control bitcoin casinos is even harder.

All the above mentioned places the government in an awkward situation, since new parallel economy is spreading quite rapidly. In spite of having numerous advantages, digital currency systems in the context of casinos create complex tasks.

Legal Aspect of Bitcoin Casinos

The nature of bitcoin transactions and the above listed aspects make the status of bitcoin casinos in the USA illegal. As for legal bitcoin casinos, they are mostly located outside America. A lot of amused customers from around the world, including the largest portion of American users, enter these websites anonymously, therefore, governments experience difficulties in tracking, controlling and legalizing their transactions.

The lack of freely available information on such anonymous business complicates the collection of data, which could be used to adopt new rules.

Casinos Influence on Transactions

Due to the lack of information, it is quite complicated to assess the impact of bitcoin casinos on the currency bitcoin itself. Reportedly, after the gaming website was launched in April 2012, total daily transaction volume increased almost five-fold. This brightly demonstrates how anonymous world depends on gambling.

The reality is that the number of transactions in casinos bitcoin is growing steadily, thus increasing the frequency of bitcoin usage.


Regardless of the type of transactions performed – using traditional or digital currency –, gambling and casinos have always been placed under scrutiny from an ethical point of view. Add the transactions’ complexity and the activity of bitcoin casinos is becoming more and more confusing. Although an opportunity to make easy money can blow customers’ mind, they should always think over legal aspects, difficulties and risks.

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