Online gambling has exploded in popularity over the past five years. In the US alone, this sector raked in revenues of $19.5 billion in 2023, with this number getting projected to double by 2029. Naturally, one of the main reasons why this sphere has prospered so much is the global establishment of mobile-centric payment systems and the rise of cryptocurrencies.
Mobile wallets are becoming increasingly popular in the United States, with five brands vying for the top spot in the US e-commerce landscape: PayPal, Google Pay, Amazon Pay, Zelle, Apple Pay, Venmo, and Cash App. The latter, established in 2013 by Twitter founder Jack Dorsey, now has over fifty-seven million users, and in 2024, it brought in revenues of $16.25 billion. One of the most praised features of this person-to-person money transfer service is its ability to handle crypto transactions. That capability was added to this mobile payment software in 2018, allowing Americans to buy and sell Bitcoin seamlessly.
Since cryptocurrency-based gambling is not allowed in the US, offshore casinos have taken advantage of this Cash App option to allow this transaction method as a convenient means through which Americans can gamble on their platforms using virtual money. That is what we explain in-depth below.
What Is the Bitcoin Loophole?
Sports betting is massive in the US, online and offline. Yet, the same cannot be said for internet casinos, as these hubs are only legal in seven US states. In none of these, respective regulators allow operators to accept cryptos as stakes in their remotely offered games of chance.
Cryptocurrencies are not yet regulated in the US on a federal level, but different agencies oversee different aspects of the blockchain realm. For example, the Securities and Exchange Commission regulates crypto assets classified as securities, and the Commodity Futures Trading Commission oversees crypto derivatives like Bitcoin futures, treating Bitcoins as commodities.
Due to financial regulation, most US-based gambling sites do not accept cryptos. However, since operators based in other countries do not have to adhere to US laws, they are free to run what some call Cash App casinos. These online platforms accept gamblers residing in the United States who can deposit in Bitcoin and other cryptos on these websites, bet with these currencies, and withdraw their winnings in them.
Hence, the Cash App makes it practical for Americans who own a smartphone and want to gamble, buy Bitcoin in minutes, and send those funds to a chosen offshore casino to fuel their gaming entertainment on that site.
The Crypto-Buying & Gambling Process Via Cash App
To acquire cryptos for gambling fun, US gamblers must open the Cash App on their smartphone/tablet navigating to its Bitcoin section. They must choose the Buy Bitcoin option and input their desired amount there. After doing this, they must confirm their purchase. First-timers may be required to verify their identity. Yet, Cash App has been known to forego this for minimal amounts.
Once an individual has coins in their app balance, they must go to the crypto casino they have selected, OnlineUnitedStatesCasinos.org has a terrific collection of these, and open the cashier window in their casino account. There, they must pick Bitcoin and copy the generated address.
With the casino’s wallet address copied, the wannabe gambler must head back to the Cash App, choose Withdraw/Transfer Bitcoin, and paste it there. Then, they must wait around forty minutes for the transfer to go through; ten minutes is more likely. Once it is confirmed that it has, that person should be eligible to play any game on their selected platform.
The withdrawal process is similar, but to get paid, said gambler must enter their Cash App wallet address in their casino’s payment window in its withdrawal tab.
The Appeal of Cryptocurrencies for Gambling
Compared to mainstream fiat payment choices, cryptos supply a more detached service, tracking-wise. For those who crave privacy and speed, they are the go-to options. Moreover, they deliver reduced fees compared to traditional banking methods, which help loads, as for international fiat transactions, these can be super hefty.
Crypto payments are also swift in most cases. However, it must be pointed out that Bitcoin does not have one of the quickest networks. On average, a Bitcoin transfer can take around forty minutes to complete. Nevertheless, ten minutes is more likely based on our experience.
Most gamblers love using cryptos because most platforms that allow this type of gambling have less stringent Know Your Customer requirements or none at all, meaning these gamblers can keep their identities a secret when enjoying this pastime.
The main cons are that crypto value can be highly volatile, leading to gamblers getting less fiat funds when they convert money back. No chargebacks are also feasible with blockchain transactions. So, if someone sends coins to the wrong address, they are gone forever, as cryptocurrency transfers are irreversible. Many gamblers do not like this, as they are used to getting chargebacks from their credit card companies.
Legal problems connected to crypto-gambling are non-existent. Taxes are the main issue, but these only apply when someone converts their coins into fiat money.
Sadonna Price
Sadonna is a casino content creator and former professional poker player who loves using her creativity to provide insight into the most interesting aspects of the casino world.
