Depositing with Bitcoin in the online casino - is that realistic?

The "crypto hype" was predicted many years ago. Recently, however, German enthusiasm for cryptocurrencies has remained limited. According to Statista, just 13% of Germans use or own cryptocurrencies. However, the proportion has risen by 4% in the last two years. So will players in online casinos be able to make payments with cryptocurrencies in the foreseeable future?

Back in autumn 2021, we at GambleJoe asked ourselves whether German online casinos accept cryptocurrencies as a means of payment. At that time, we came to the conclusion that it is unfortunately not permitted for legal reasons to make deposits and withdrawals in online casinos using cryptocurrencies such as Bitcoin, Litecoin or Ethereum. In the meantime, the official regulations have been relaxed somewhat, at least in some respects. Could this also apply to the payment methods on offer?

Which payment methods are permitted under the Interstate Treaty on Gambling?

Section 6b GlüStV contains the legal requirements on the subject of "deposits and withdrawals in online gambling". First of all, it states that a gaming account must exist in which all player balances must be clearly shown in euros and cents (paragraph 1). Anyone wondering whether cryptocurrencies are permitted as a means of payment in online gambling should take a look at paragraph 4, which states that

"Payments to or from a player account may only be made from a payment account in accordance with Section 1 (17) of the Payment Services Supervision Act that is in the name of the player (...). Deposits or withdrawals via anonymous means of payment are not permitted in remote operation".

The aforementioned paragraph of the Payment Services Supervision Act continues:

"Payment account is an account held in the name of one or more payment service users that is used for the execution of payment transactions".

Result: Cryptocurrencies such as Bitcoin or Ethereum are ruled out as a permissible means of payment, as the respective wallets cannot be assigned to the name of the holder. Therefore, payments using cryptocurrency are at least considered pseudonymous.

Why are cryptocurrencies not allowed to be offered in online casinos?

The background to this is that money laundering and other criminal activities should be prevented or made considerably more difficult. Back in September last year, we at GambleJoe asked ourselves how easy it is to launder money in online casinos.

If online casinos with a German licence were to accept cryptocurrencies, it would be almost impossible for the responsible authorities to trace money flows and determine the origin of funds. For this reason, the legislator has decided not to authorise cryptocurrencies as a means of payment in the online gambling sector (for the time being).

On the black market and in many other countries around the world, however, the importance of crypto deposits in online casinos has been increasing for years. In December 2021, we reported that, according to SOFTWISS, almost half of casino deposits are already made using cryptocurrencies.

The best online casinos at GambleJoe!

How interested are Germans in cryptocurrencies at the moment?

According to a survey by Statista Consumer Insights, Germans' enthusiasm for cryptocurrencies is still limited. Last year, 13% of respondents aged between 18 and 64 stated that they owned or used cryptocurrencies. In comparison: two years earlier, the proportion of respondents who owned or used cryptocurrency was 9%.

In other countries around the world, the "crypto hype" is already much greater. By 2023, more than one in four Brazilians are expected to own or use cryptocurrencies (27%). According to Statista, "crypto enthusiasm" is similarly high in India (23%), South Africa (23%) and the USA (17%).

Conclusion

The Interstate Gambling Treaty clearly stipulates that cryptocurrencies are currently not permitted as a means of payment. This is firstly because cryptocurrencies do not have a payment account in the player's name and secondly because such payments favour money laundering and other criminal activities. The Joint Gaming Authority of the federal states (GGL) is not currently endeavouring to change the current regulations.

Image source: https://pixabay.com/de/photos/bitcoin-kryptowährung-währung-3327635/