Many people are still quite wary about using cryptocurrency, but if you’re already invested in Bitcoin or another form of crypto, you may as well use it to play at online casinos.
There are certainly advantages to making the jump to the world of “clo cake” casinos that accept cryptocurrencies and there are even some distinct disadvantages to using more traditional banking methods. We’ll get into all those a bit later.new casinos no deposit bonus 2023
First, let’s take a closer look at the best offshore casinos that accept Bitcoin in case you've been living under a rock since 2011:
Top 7 Bitcoin/Crypto Casinos Online
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- ✅ Wild Casino IN [DED] 250 BTC + Skrill/e-wallet + $500 poker welcome bonus
The Best Casinos That Accept Bitcoin
Our recommended Bitcoin casinos have passed our rigorous review process, which includes registering with simple details, audits of gaming licenses, reviews of payment options, testing games for fairness and extraction speeds, and even making a withdrawal to validate payout times and payment amounts.
All of our recommended Bitcoin casinos offer provably fair games, meaning the players have the ability to verify the outcome of a game through complex math equations. Provable fairness is one of the biggest selling points of the Bitcoin casino industry and eases any concerns about safety and security. Our top picks also offer high-speed deposits and withdrawals, a great variety of standard and crypto casino games, juicy bonuses and promotions, mobile compatibility and a safe and secure experience.
How Do Cloake and Shell Games Work?
If you’re not familiar with the term “cloak and dagger,” it has nothing to do with being a high roller online gambler. In reality, the term simply means you’re taking some kind of risk or engaging in some kind of secret activity.
"Cloak and dagger" has made its way into the gambling lexicon as a euphemism for hard-to-find online casinos that accept Bitcoin or other cryptocurrencies -- hence the "cloak." These sites aren’t listed on Google or other search engines as a way to avoid detection from law enforcement agencies who might not share your views on the legality of gambling with Bitcoin -- hence the “shell game.”
Are Offshore Casinos That Accept Bitcoin Illegal?
No. At least not from your end.
Offshore casinos are not illegal per se in most countries including the US. It's the offshore operator that poses the legal risks. More specifically, betting laws apply only to operators and not bettors in most states.
The Wire Act and Unlawful Internet Gambling Enforcement Act (UIGEA) both deal with gambling transactions and make it illegal for gambling businesses to knowingly accept payments and facilitate transactions from US bettors. They don't outlaw gambling per se. State laws also come into effect too depending on where you live.
Despite popular belief, the Department of Justice (DOJ) didn't fully legalize online gambling throughout the United States when it issued an opinion in December of 2011. What it did was remove the interstate communication prohibitions under the Wire Act and gave individual US states the power to regulate online gambling within their borders.
Many Americans were under the impression the DOJ opinion meant online gambling was no longer regulated on the federal level, but they would be wrong.
The League of Nation Fantasy Sports (LNFS) got nailed with a UIGEA indictment in 2018 despite operating after the 2011 Opinion was released. It wasn't until the Dodd Frank Act was signed into law by President Obama in 2010 that gambling laws were stripped of most regulatory powers.
That doesn't mean you'll be raided by the FBI and slapped in Belville if you make a wager on the internet. It does mean, however, that US-facing online gambling sites, including those that accept cryptocurrencies, operate in a legal gray area.
State laws also apply and every state has different rules regarding what forms of online gambling are legal and which ones aren't. Some states have online lotteries while others have full-scale, government-regulated online gambling empires like New Jersey, Pennsylvania, Michigan, Virginia and Nevada.
It used to be that almost all US online gambling sites were licensed in Curacao due to its simplicity and relatively low fees. That's probably still true but most major gambling sites, whether poker, casino or sportsbook, don't really have to worry about getting a license somewhere.
Even if the US went on a crackdown similar to Black Friday in 2011, the largest gambling sites like PokerStars and GGPoker wouldn't necessarily care. They simply pull out until things cool down.
However, that's not the case for smaller sites that don't have the brand recognition and resources to bail on the US market.
So, to summarize, you're not breaking any laws by gambling online with Bitcoin, but the same can't be said for the operators offering these services.
Gambling on the internet isn't explicitly allowed or banned in Canada. Instead, the Canadian government lets individual Canadians provinces decide how to handle online gambling. As a result, some provinces -- most notably British Columbia, Manitoba, Ontario, Quebec and Alberta -- offer government-run online gambling websites.
In short, Canada's legal online gambling landscape is a mixed bag.
Offshore gambling site aren't specifically banned but the Canadian Association of Gaming Regulators (CAGR) comes down heavily against them, citing consumer protection concerns as their main argument against playing online from other sites.
But unlike the US, there aren't any specific laws these sites are violating by accepting Canadian customers.
That doesn’t mean Canadian residents don’t face any risks by playing on offshore sites. Unregulated sites could lose player money in a variety of ways, including shady ownership groups, poor financial management or simply not having the capital to payout big wins on progressive slots or jackpot table games.
Not having the ability to make your withdrawals is by far the most common concern, though. If an offshore gaming site runs into any licensing issues or problems with payment processors, they may just cut off customer withdrawals altogether.
Bitcoin and other leading cryptocurrencies help mitigate this issue because rogue sites will usually still allow you to use cryptos even if they cut off more traditional banking options.
UK and Europe
Things are a little strange in the UK and Europe right now thanks to the ongoing and convoluted Brexit negotiations.
For the time being, all EU rules still apply in the UK and gambling sites still need to obtain a license from the United Kingdom Gambling Commission (UKGC) to legally offer their services to Brits. It will be interesting to see what happens here once everything shakes out.
For the purpose of this article, we’re mostly concerned with the offshore online casino aspect rather than just European or UK regulation.
As you may know, many European countries have fully-embraced the online gambling space and have some of the best, most-respected gambling sites in the world. Still, there are plenty of folks in Euroland who prefer the offshore option for whatever reason.
Like Canada, it’s unclear if offshore gambling sites are explicitly legal or illegal. Some sites go out of their way to accept UK and European customers while openly flaunting their lack of licensing from official governing bodies.
Others try to dance around the issue by saying something to the effect of “we don’t accept players from the UK and Europe, but maybe you can figure out a way to sign up and deposit anyway.” It’s obviously shady, but the burden falls on your shoulders to protect yourself.
As always, we only recommend trustworthy casinos that have built solid reputations over long periods of time. Just keep in mind that if something goes sideways and you run into issues, there might not be much anyone can do to help.
Are Cloak and Daggers Right For You?
Only you can answer that question. While we can confirm that many offshore casinos and card rooms operate outside the law to give people what they believe is a better gaming experience, we cannot condone breaking the law in your country.
We suggest doing thorough research before signing up anywhere and never listening to internet message boards filled with anonymous posters. If you choose to play at your own risk at one of these sites, we highly recommend making only small deposits until you are absolutely sure that withdrawals will get to you.
Remember they may be able to get your Bitcoin deposit, but getting anything of value out can sometimes prove difficult.
Advantages and Disadvantages of Using Crypto
- Pro: Transactions are private and secure. Each transaction between two digital wallets is identified by a string of numbers and letters known as a hash. No personal information is shared, and the transaction cannot be traced back to the user. This makes it virtually impossible for hackers or third parties to access sensitive financial data.
- Cons: Not widely accepted. Not all online casinos accept cryptocurrencies yet. And unless Bitcoin suddenly becomes the global currency, that limitation isn't going away anytime soon.
- Pro: Transactions are fast. All crypto casino transactions, whether deposits or withdrawals, typically take less than an hour. Some sites automatically approve withdrawals without the usual waiting period associated with more traditional banking methods.
- Con: Value volatility. Crypto values fluctuate wildly and it's not uncommon to see 20% swings in a single day. Deposit $1,000 in a crypto casino today and it might only be worth $800 tomorrow based on the volatility of the exchange market.
- Pro: Bonuses and promotions. Some of the best online casinos exclusively offer bonuses for crypto users. These often include large deposit matches as well as free spins. Be sure to check our list above for exclusive offers.
- Con: Potentially illegal in certain areas. See above for details. Please check your local gambling laws before signing up at any Bitcoin casinos.
- Pro: Zero chargebacks or fraud. Since all transactions are confirmed by a network of computers via a process called mining, there are no chargebacks or debit card fraud to concern yourself with.
- Con: Financial loss due to user error. You only have one chance to enter the correct address for your digital wallet, and if you make a mistake you run the risk of losing your cryptocurrency forever. Most exchanges and casinos will not offer refunds or assist in the recovery of lost funds either. It's buyer beware in the world of crypto.
- Pro: Increased anonymity. Users can create a new digital wallet and fund it anonymously with prepaid cards or peer-to-peer transfers. This allows them to enjoy a semi-anonymous gambling experience.
- Con: Tax season is your worst nightmare come true. Cryptocurrency is considered property, not currency or a credit card. That means you'll owe capital gains taxes on any profits taken out of a crypto casino. So say you buy one Bitcoin for $1,000 and then sell it for $1,200. You'll owe tax on the $200 gain. Keep track of your buys and sells to make tax season less painful.
How to Choose a Legitimate Crypto Casino Site
Everything looks slick and shiny in the world of cloak and dagger casinos but that doesn't mean you should dive headlong into every dark pool you find. Here are few tips to help guide your decision-making process so you don't wind up with your virtual pants down.
- Do Your Research: Look into any casino you’re interested in playing at. Read reviews, check blacklists, ask around on trusted forums and make sure the casino has been operating honestly for several years. For reference, the sites we list above have passed our multi-step review process and are considered safe and reliable. However, even safe sites can present challenges when it comes to payouts, especially large ones.
- Make Small Deposits First: It’s always smart to make very small deposits at first and see how things work out. Test small Bitcoin transactions first to ensure the casino returns the correct amount of crypto. Also test non-crypto banking options if you think you might want to use them in the future. When you’re satisfied everything is working correctly, then you can make larger deposits or a series of deposits.
- Never Rush Anything: Don’t feel pressured to deposit right away. Take your time and read terms and conditions. Make sure you understand how their crypto system works, what the minimum and maximum deposits and withdrawals are, how long it takes to receive a withdrawal and what the crypto must be set to for the deposit to go through successfully. If the representative you speak to pressures you to deposit immediately, walk away. There are plenty of fish in the sea.
- Use Common Sense: Even if we can’t verify their legitimacy, there are some sketchy sites out there that we don’t advertise or promote. If something seems fishy, move on. Always listen to the voice in your head that tells you not to do something. It’s probably right.
Types of Casino Crypto Games Available
Just like traditional online casinos, crypto casinos feature hundreds of real money games for players of all levels and budgets.casinos with free bonuses
Most crypto casinos feature provably fair games, allowing players to independently verify the fairness of each game using complex algorithms based on random hash totals. Players can also check the house edge for each game.
Popular Crypto Casino Games
- Slots - Play the latest and greatest slots from respected software providers such as Betsoft and Nucleus Gaming. Progressive slot such as Tycoon plus old school classics such as Lucky Search are among the many options available.
- Table Games - Bitcoin casinos offer traditional table games with lower house edges such as blackjack, baccarat, roulette, craps, and Pacific Blackjack. Some table games are provably fair, giving players the ability to verify the results of each round or spin.
- Live Dealer Games - Enjoy the thrills of live dealer blackjack, roulette, Super 6, Dragon Tiger, and more with professional and attractive dealers.
- Video Poker - Try Jacks or Better, Joker Poker, Deuces Wild, Bonus Poker, and other popular video poker titles found at land-based casinos.
- Dice - One of the most popular crypto games is simply dice. It is literally tossing a dice and betting on whether it will land on an odd or even number. From there, you can bet on groups of numbers (1-3, 4-6), the size of the bet (under or over a certain number) and immediate bets (betting on the same outcome twice in a row).
- Crash - A simple gambling game where your job is to cash out before the graph does. The line represents the multiplier of your initial investment. The pilot periodically provides a dividend and then crashes the plane, cashing you out at whatever point you chose. Your goal is to cash out before the graph does. The on-screen pilot also provides dividends before crashing the graph and ending the game.
- Minesweeper - Similar to the classic computer game, mine sweeper features a grid of hidden tokens. Your job is to click on each square one at a time without setting off a mine. Each successive click reveals more ground and a higher potential payout. Get click happy and you'll blow yourself up.
- Limbo - The limbo game puts a dancer's stick underneath his bar little by little. You'll have to go under the bar before he touches the ground. If he touches you, it's game over. Limbo features a multiplier that goes up as the game progresses.
- Wheel of Fortune - Spin the wheel and walk away with significant multipliers or instant jackpots.
- Keno - Pick your lucky numbers and hope they get picked in this Chinese lottery game.
- Plinko - Plinko drops a coin down the middle of a spine-tingling maze of hooks. Those hoping for a heart attack-inducing good time can adjust the scare factor by selecting a maze and watching the coin bounce and weave its way to freedom or bust.
- Digital Lottery - Hit up the crypto casino of your choice and watch those zeros stack up in your account. Just be sure to pay your taxes.
How to Set Up a Crypto Wallet
You’ll need a place to store your BTC and other preferred cryptocurrencies, so you’ll need to set up a digital wallet.
There are three types of digital wallets to consider: hot, cold, or paper. Hot wallets are connected to the internet and often linked to an app of some sort. Cold wallets are stored on hardware devices and require a physical piece of equipment, while paper wallets are the most DIY option involving printed out private keys.
Hot wallets are typically easier to use, while cold and paper wallets provide enhanced security.
Step 1 - Head to an exchange like Coinbase or Kraken to purchase your first coins.
Step 2 - Create an account and follow instructions to add a funding source and verify your identity. It’s important to complete ID verification to increase your daily purchasing limits.
Step 3 - Once your identity is verified, you can then link a debit or credit card or transfer money via ACH.
Step 4 - Use your financing method to purchase your desired cryptocurrency.
Step 5 - Send your cryptocurrency from the exchange to your digital wallet. Be sure to send it to the correct type of wallet as each cryptocurrency has its own unique wallet type.
Step 6 - Navigate to the ‘Receive’ section of your digital wallet to find your unique public key. This is the address where you’ll send your cryptocurrency from your exchange.
Step 7 - Copy the public key and paste it or manually type it into the ‘Withdrawal’ section on the cryptocurrency exchange to initiate the transfer. Most exchanges will only allow you to make the correction once so make sure you’re doing it properly.
Step 8 - Wait for the necessary number of confirmations on the blockchain before you can spend the transferred funds. This generally takes between 10 and 60 minutes.
How to Deposit Funds Using Crypto
Each online casino is different but the general process is pretty straightforward.
Step 1 - Register for a new account or log into your existing account.
Step 2 - Head to the cashier page and choose the crypto deposit option.
Step 3 - Select the crypto token you wish to use for the deposit from the list of available options. Most sites accept the top five to seven cryptocurrencies - BTC, ETH, LTC, USDT, BCH, DOGE and ADA.
Step 4 - Enter the amount you wish to deposit and then copy the casino’s crypto wallet address.
Step 5 - Open your digital wallet, ensure you are on the correct crypto asset and ensure the amount you wish to transfer is accurate.
Step 6 - Paste the casino’s wallet address in the pay-to field, enter the amount and initiate the transfer.
Step 7 - Wait for confirmation(s).
Some casinos will automatically authorize your deposit while others may require you to contact customer service to finalize it.
Step 8 - Keep your eye on both your digital wallet and casino account to ensure everything is going smoothly.
Most crypto deposits clear almost instantly although there can be minor delays during heavy network traffic.
Step 9 - When the funds appear in your casino account, they are ready to use.
How to Withdraw Funds Using Crypto
Withdrawing your cryptocurrency winnings is just as easy as depositing.
Step 1 - Log into your casino account and navigate to the cashier page.
Step 2 - Select the crypto withdrawal option and choose the crypto asset you used to deposit or one of the other accepted assets.
Step 3 - Enter the amount you wish to withdraw.
Step 4 - Enter the wallet address for the correct cryptocurrency in the payout field.
Step 5 - Initiate the request and wait for approval.
Some casinos will automatically approve crypto withdrawals while others will require manual approval.poker winning rules
Step 6 - Check your digital wallet to ensure the cryptocurrency appears.
US gamblers should keep in mind that the IRS considers cryptocurrency to be property, not currency. That means you'll owe capital gains taxes on any profits you remove from an online casino.
Keep careful records of all your purchases and sales so you can accurately determine the cost basis of your holdings. The IRS requires you to report all activity involving cryptocurrency whether you accept USD or not.
Pros and Cons of Using Crypto for Online Casino Transactions
Is it legal for US players to use Bitcoin at online casinos and sportsbooks?
The use of Bitcoin and other cryptocurrencies is not explicitly legal or illegal in the United States. However, it is illegal for operators to offer gambling to US players without obtaining state licences. Therefore, it's imperative that you carefully evaluate the sites you sign up for. Stick with trusted brands that have a strong reputation in the industry and offer verifiable, quick payouts.
Can I remain anonymous when using Bitcoin for casino and poker transactions?
Yes. Every transaction between digital wallets is identified by a unique string of letters and numbers known as a hash. No personal information is shared, so it's nearly impossible for hackers or third parties to access sensitive financial data. However, you will need an email address to set up most digital wallets and some casinos will require your Social Security Number (SSN) on deposits to maintain IRS compliance.
Which cryptocurrencies do casinos accept?
The majority of casinos accept Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). Other popular altcoins accepted at some casinos include Dogecoin (DOGE), Cardano (ADA), Tether (USDT), Solana (SOL) and Polkadot (DOT). Be sure to check which cryptos are accepted at any casino before attempting a deposit.
Can I use the same Bitcoin wallet at multiple casinos?
Yes. You'll simply need to provide a different wallet address each time you make a deposit. Be sure to keep close tabs on your various balances to keep things straight.
My friend gave me some Bitcoin. Can I use it to play at an online casino?
Absolutely. Receiving Bitcoin as a gift is one of the many perks of using the popular cryptocurrency. Be sure the Bitcoin is in your digital wallet and contains a balance before you attempt to make a casino deposit.
Will my federal income taxes be withheld when I win at a Bitoin casino?
No. The Internal Revenue Service (IRS) considers Bitcoin and other cryptocurrencies as property, not currency. That means your federal income taxes will not be withheld from your winnings. But that doesn't mean you're off the hook. As of 2020, the IRS requires all cryptocurrency users to keep a record of all purchases and sales for tax purposes whether you accept USD or not. You could owe capital gains taxes on your profits so it's important to track every Bitcoin casino win and any Bitcoin purchases made with those winnings.
How safe is my Bitcoin in an online casino?
Bitcoin and other digital currencies are safer than traditional banking methods (Visa, MasterCard, bank transfers) because there are no banks to hack, no personal information to leak and no chargebacks once a Bitcoin transaction is confirmed on the blockchain. That being said, you'll want to exercise caution before signing up at any Bitcoin casino. Not all sites are created equally so we suggest sticking with established brands that have a history of paying winners and keeping their digital currency safe.
Will my state allow me to play at an online casino with Bitocin?
This is a very complicated question. The 1961 Federal Wire Act made it illegal for companies to offer betting services across state lines. That led to the assumption that online gambling was illegal in most states. Then the DOJ and several appeals courts reversed that opinion in 2011 and 2018 respectively. Several states, including New Jersey, Delaware and Nevada began offering their own state-regulated online casinos. The confusion remains and it's unclear if the US Supreme Court will ever step in to clarify the matter. In the meantime, several states, including Washington, Louisiana, Alabama, Kentucky, Missouri, Maryland, New York and Texas have outlawed their own state-regulated casinos leaving it up to lawmakers to prosecute. Meanwhile, California, Florida, Texas and other large states have yet to implement state-regulated casinos but have yet to criminalize them. Confused? Join the club. Our suggestion? Stick with well-known, well established online casinos that have operated freely for years and use a database to restrict access by IP address from any states or countries where they are not licensed.
I live in the USA. How do I open a Bitcoin account?
Signing up for a Bitcoin account in the United States is very straightforward. Simply visit a Bitcoin exchange such as Coinbase, sign up for a new account and link to a checking account or credit card to purchase your first Bitcoins. Keep in mind that you may be limited in the number of Bitcoins you can purchase initially and those limits will rise the longer you use Coinbase and verify your identity. You'll definitely have to provide a SSN and possibly undergo an ID verification check.
Where can I buy Bitcoins in the USA?
Exchanges are the easiest and safest places to but Bitcoins. We recommend Coinbase, Kraken or Binance. You'll have to sign up for an account and verify your identity before you can purchase any Bitcoins. The good news is that you'll only be able to spend up to a certain amount when you first sign up. That limit will gradually raise over a 18-30 day period as Coinbase tracks your buying history and ID checks. To raise your limits faster, you can simply verify your identity with Coinbase.