Cryptocasinos pose increased risk, needs strict regulation even in countries that already permit them

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Activists across the world have been raising the issue of illegal gambling portals operating without regards to territorial jurisdiction. Across the world the less talked aspect however is the increase in betting portals accepting cryptocurrencies.

Few years back, Premier League football team Southampton was paid £7.5 million a year for sponsorship deal with sportsbet.io, which permits gamblers to make sports bets during matches with cryptocurrencies.

Cryptocasinos and Soccer teams

This followed Drake announcing a partnership deal with Stake.com, another major cryptocasino. Stake.com went ahead and became Everton FC’s new jersey sponsor in June 2022.

Last month, it was reported that Chelsea FC is in talks with Stake.com over a deal to become their new shirt sponsor.

Beyond gambling and it’s much talked issues like addiction, crypto casinos carry additional risk. The anonymity offered  cryptocurrencies makes it harder to trace the source of funds or the persons operating the account.

Cryptocasinos are often accessible in countries where strict regulations are in force. This includes China where online gambling is illegal. China has strict censor requirements when compared to other major economies.

Because cryptocurrencies are decentralized, it is difficult for authorities to monitor transactions and activity on these platforms. The lack of regulation and overseeing authority has the potential to result in theft of funds, money laundering, and unethical gaming activities.

Cryptocasinos therefore present a double danger, as they allow gamblers to bet on a range of sophisticated online gambling products such as online slots and in-play sports bets, using cryptocurrencies as the source of funds.

In a research, led by the University of Bristol and the University of East London earlier this year, the researchers  urged for major reform to reduce the extra threat to online gamblers now being lured by an explosion of so-called ‘cryptocasinos’. “Further findings suggested that cryptocasinos could be considered riskier to gamble on than conventional online operators, even for people who can otherwise gamble online legally.“

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