How does bitcoin casino work

Bitcoin Casinos are like regular casinos, only that they work with bitcoins. As Bitcoin is becoming more and more popular, the need for it to be accepted as payment method has increased in recent times. Unlike fiat transactions which could take days to be verified on many platforms, Bitcoin transactions are way faster. So, Bitcoin Casinos among many others have adopted this mode of deposit and withdrawals. In this text we are going to explain what Bitcoin casinos are and how does bitcoin casino work. You will also learn what the pros of bitcoin only casinos are and some legal aspects related to it.


What Are Bitcoin Casinos?

For those who don’t know what Bitcoin is, the Bitcoin is the most popular crypto currency based on the so called blockchain technology. A few online casinos transact only in bitcoins. This means that players get their funds into their accounts as Bitcoins. Also, they take their rewards in the same way. On the other hand, other casinos offer bitcoin as an extra currency of transaction, in addition to transactions in fiat currencies like the U.S. dollar.

The number of online casinos which offer gambling and games with Bitcoin is growing from day to day. Bitcoin casinos work all over the globe, though they are meant to be subject to local laws. Through bitcoin transactions, these casinos offer a wide variety of options for players to bet their bitcoin money. These include usual casino games, gambling games, sports betting, online lotteries, and spread betting.

How does Bitcoin casino work
Bitcoin Casino

How does Bitcoin casino work?

Have you ever wondered how does Bitcoin casino work? The key thing for one Bitcoin casino to work is its software. It is at the heart of any online gambling or gaming business and the same holds true for bitcoin casinos. A lot of bitcoin casinos with large user bases run their own software, developed on their own. Other smaller players use bought or rented versions, and they add a few unique features to the games to adjust them . 

The software conducts and runs the game, with minimal human intervention. If a game needs all human players, the software plays the role of the table dealer (and it runs the game). Due to the digital nature of their business, bitcoin casinos face the challenge to convince users that their actions are fair. Most bitcoin casinos try to gain trust by openly disclosing how their software algorithms work. For the rest, it’s more of a peer to peer reference that works or the uniqueness of their offering in the casino games.

Poker is the most popular game for bitcoin casinos, while a lot of other fun games, lotteries, and variations of popular games exist.

What are the pros of Bitcoin casinos only?

A lot of gambling operators would like to run a casino on Bitcoin currency. This is because banking costs (costs paid to payment methods such as credit cards, e-wallets and banks) don’t affect the bottom line profits.

In comparison, transactions with Bitcoin are processed for free. As a result, Bitcoin casinos are then able to pass these savings back to their players through more generous bonuses and higher rewards.  Plus, the payout percentages on games are higher in favor of the player than regular online casinos.

Bitcoin casinos let players play with great discretion by keeping requests for personal info to a minimum. They only request email address so that password recovery can go smoothly if needed. 

Bitcoin only casinos will often ask for some type of ID when players want to withdraw their funds.

The more traditional online casinos, which offer Bitcoin among the other currencies, have different deposit and withdrawal methods. Players who make a deposit using Bitcoin will have to pick a fiat currency, such as US Dollars, to use when betting at the casino. However, the casino will let them withdraw again using Bitcoin once their gaming session is over.

Bitcoin transactions are anonymous
Bitcoin transactions are anonymous

Legal Aspects of Bitcoin Casinos

Since bitcoin transactions are purely digital, audit and verification become a challenge. For example, in an online card game, what is the guarantee that the cards have been shuffled and distributed fairly? Plus, if the player pays anonymously through digital currency, fair business practices become even more questionable.

A lot of bitcoin casinos require minimal user details with no age verification, no location check, or other details.

Gambling is not allowed in lots of countries across the globe, and bitcoin casinos make it even more difficult to regulate and control at a global level.

All the above working methods prove a challenge for authorities, as a new parallel economy is taking shape. Although digital currency-based systems may be cited for their pros, casino based gambling is surely a challenge at multiple levels.

Due to the nature of bitcoin transactions and challenges listed above, running bitcoin casinos is illegal in the U.S. Most of the legally known bitcoin casinos are founded outside of the U.S. Users from all over the world (with a huge user base from the U.S.) transact on these bitcoin sites anonymously. This poses a big challenge for authorities to control and legalize the transactions. Lack of open info on such businesses based on anonymity poses a challenge to gathering the type of data that would be needed to enforce rules.


Casino gambling with cryptos has its pros and cons. On one hand players will discover a world of discretion, ease and fun when they switch to Bitcoin casino gaming. On the other hand, they should keep in mind the legal aspects, challenges, and risks.