With crypto betting becoming one of the most popular ways to bet on sports, it’s important to keep up to date with the latest regulations. Depending on where you are located in the world, there are different rules that you have to abide by. We’ve put together a list of the most important regulations that you might need to know in order to start playing.
How do Crypto Betting Regulations Impact You?
Before we get into what the regulations are, it’s important to understand why you need to know about them. Crypto betting regulations can impact on many different areas of sports betting, so knowing what they are will allow you to avoid any issues. So, how can they affect how you play?
Illegal to Bet with Crypto
Some regulations make it illegal for you to bet with cryptocurrencies. If this is the case you have to be wary when playing. While you will most likely still be able to do so through offshore sites or a VPN, there is an increased risk of your funds being confiscated if you’re found out.
In some countries crypto betting is only allowed if the player proves who they are and how they got their funds. If remaining anonymous is important to you then offshore sites may be your only option. Again, this can then provide other issues further down the line.
This is an area that can impact crypto and betting as separate entities. Crypto betting regulations may require you to pay tax on your winnings, your crypto earnings or both. Knowing what you do or don’t owe in terms of tax is massively important if you want to bet with crypto. It is important to remember that professional gamblers will still have to declare their profits for taxation purposes, even in countries that don’t have taxes on winnings.
Crypto Betting Regulations in the USA
The USA isn’t a simple country when it comes to betting. The 50 states, and Washington, all have different rules when it comes to gambling. More than 50% of the states in the USA do all for some form of online gambling, which does mean that there’s the potential for crypto players to play online.
Because crypto trading is legal within the USA, it gives players the opportunity to purchase cryptocurrency from a regulated broker. As such, as long as the broker and online sportsbook are regulated, crypto players should be able to play using crypto. If the sportsbooks comply with the in-state regulations then crypto playing should be completely accepted.
What players do need to look out for is the tax rules. Each state will have its own tax rules in place, it means the tax rate on gambling profits will vary between states. On top of this, there are also taxes on crypto earnings, due to federal regulation. Each state will have its own tax rate in place.
UK Crypto Betting Regulations
The UK has pretty standard crypto betting regulations in place. It allows for online gambling across the board and there are no taxes on any winnings. It means that this puts the UK in a solid position at first glance. However, in order to bet with crypto there are a few caveats. Players have to prove who they are and that their cryptocurrency was acquired legitimately. This removes the anonymity of players, which can be an issue for crypto users.
While there are no taxes on winnings, there are taxes on crypto earnings. So, any increase in crypto prices when you sell will require it to be declared on any tax returns.
Australian Crypto Betting Regulations
Australia is not a safe haven for crypto players. There are no on-shore sites that are available to players, for crypto betting or standard betting. It means that players are only able to play at off-shore sites.
The main issue with Australia is that the regulator within the country is trying to completely ban crypto betting. While this is something that hasn’t taken place yet, it is being actively pursued. In the future Australians might have to find other ways to play with crypto.
Canadian Crypto Betting Regulations
Canada doesn’t have any regulations in place within the country itself. However, it also doesn’t allow for betting to take place at sites within its borders. Off-shore sites are allowed for Canadian players though. It means that crypto players have to make sure that they choose a safe site to play at when in Canada.
When it comes to taxes, Canada doesn’t levy taxes on any winnings. There is an exception in Ontario which does have taxes on winnings.