Any search for crypto casinos will reveal many sites and ads promising anonymous gaming through Bitcoin and other cryptocurrencies. The same sources often suggest that it's completely legal for U.S. players to use these operators. So are crypto casinos legit?
The short answer is no. These casino sites aren't legal or regulated. State-licensed casinos in regulated markets, such as Michigan, PA, NJ and WV, don't accept crypto payments. They only take traditional payment methods tied to U.S. dollars.
What's the real deal with all the Bitcoin casinos being heavily promoted online? Let's break this down by looking at why cryptocurrencies aren't accepted in regulated markets, what a crypto casino actually is, and the consumer risks behind using these unlicensed sites. We'll also discuss which payment options are supported at legal casinos.
Why licensed US casinos don't accept crypto
State gaming commissions heavily regulate payment providers to ensure trust and safety in their gaming markets.
For example, the Pennsylvania Gaming Control Board requires any payment processor working with PA online casinos and sportsbooks to provide:
Proof of financial stability
Detailed application forms
Background checks on executives and other key employees
Ongoing reports and audit obligations
Rigorous processes like these ensure that only reputable and experienced companies handle deposits and withdrawals.
Only specific credit card brands, online banking services, digital wallets, and prepaid card brands have passed the test to serve legal casinos. No cryptocurrency has been approved for online casino payments in any state.
For a full breakdown of what makes a platform trustworthy, see our guide to safe online casinos in the United States.
USD only
Licensed iCasinos must process transactions in U.S. dollars. This ensures consistency for taxation, player transactions, and regulatory tracking.
Even in Wyoming—the only state that allows crypto transactions for online sports betting—all crypto deposits must convert to USD before they're eligible for wagering.
KYC and AML compliance
Know Your Customer (KYC) and anti-money laundering (AML) measures are important components of U.S. online gambling markets. KYC requires players to verify their identities, while AML ensures transactions are traceable to help prevent organized crime.
Cryptocurrencies go against these standards because they're designed to be fairly anonymous. They're linked to alphanumeric addresses rather than identities, helping circumvent KYC measures. They also operate without a central authority (a.k.a., decentralization), making AML regulations tougher to enforce.
What is a crypto casino?
A cryptocurrency casino lets you play online casino games for real money using crypto instead of USD or other fiat currencies. Bitcoin, Dogecoin, Ethereum, Litecoin, and XRP are among the most common cryptocurrencies accepted by these sites.
As covered below, a Bitcoin casino works slightly differently from state-licensed operators and doesn't follow local regulations.
How do crypto casinos work?
You must secure crypto at an exchange before playing at one of these casinos. For example, you might visit Coinbase and buy Litecoin (LTC).
Some crypto operators require you to connect a wallet (e.g., Metamask) and approve deposits directly. Others require visiting the casino, copying the platform's wallet address, and sending funds to that address through your wallet. It's essential to use the correct address, or the funds could be lost permanently.
Once the crypto arrives, you can place bets like at a normal casino. Some operators display your wagers and bankroll in the relevant cryptocurrency, while others convert the balance to U.S. dollars or euros for simplicity's sake.
Most are located offshore with no US regulations
Most crypto casinos hold a license, but only through an offshore regulator with no connection to U.S. states that have legalized online gaming. The Curaçao Gaming Control Board and the Anjouan Gaming Board are two common examples.
Jurisdictions like these are "rubber-stamp" regulators because they'll stamp their approval on almost any application. They have lower barriers to entry than U.S. state regulators and put few, if any, player protections in place.
The risks of playing at offshore crypto casinos
Crypto casino sites often tout their anonymity, fast withdrawals, and decentralization. While these benefits exist to some capacity, the following risks should also be considered:
Weak consumer protections: Many crypto operators lack proper third-party game auditing, responsible gambling measures, and financial protections (i.e., player-operator fund segregation).
No dispute mediation: The rubber-stamp regulators that license Bitcoin gaming sites don't resolve complaints between players and operators. This leaves customers at the mercy of casino decisions when disputes arise.
High bonus wagering requirements: Crypto casino bonuses often have wagering requirements ranging from 30x to 40x. This differs greatly from casino bonus codes at state-regulated sites, where requirements are typically just 1x.
Tax complications: Everything from buying crypto to exchanging Bitcoin winnings for USD creates a taxable event.
Withdrawal issues: Some cryptocurrency gaming sites take a while to approve withdrawal requests. Others might accept your deposit, then refuse to pay winnings by claiming they don't actually allow U.S. players after the fact.
What payment methods licensed US casinos actually support
State-regulated casinos support a broad range of payment options, including the following:
ACH/online banking – Trustly, VIP preferred
Check by mail
Credit & debit cards – Visa, Mastercard, American Express, Discover
Digital wallets – Venmo, Apple Pay, Google Pay
E-wallets – PayPal, Skrill
Prepaid card – Play+
Cash – Pay Near Me, cash-at-the-counter
It's common to see an offshore crypto casino advertise itself as the fastest payout online casino available. But state-regulated iCasinos can also deliver withdrawals quickly through some of the payment methods listed above.
For example, winnings can be withdrawn to the Play+ card anywhere from nearly instantly to a few hours. Another example is a PayPal casino, which sends your payment 1–24 hours after the request.
Bottom line: Know how to tell whether a casino is state-licensed
If you want the consumer protections of state-regulated casinos, it's important to know how to differentiate them from offshore crypto operators. Here are some keys to look for:
Valid licensing from a state regulator (e.g., New Jersey Division of Gaming Enforcement)
USD-only payment methods
No emphasis on crypto-only payments or anonymity
Partnerships with known U.S. casino brands
Despite the many online ads pushing cryptocurrencies, they haven't yet entered the regulated American online casino market. Any site promoting Bitcoin, Ethereum, or other crypto payment methods is offshore and operating outside the protections of the regulated gaming systems in U.S. states.
