Bitcoin Gambling FAQ

Written by: Joseph Falchetti, Editor-in-Chief, Pro Sports Bettor and Casino Expert
Last updated:
8 minute read

Welcome to our Bitcoin Gambling FAQ page. Bitcoin is unlike other deposit options and has been so successful when it comes to online betting markets that we’ve added FAQ page for additional questions bettors may have about it and other digital currencies. Before diving into the Bitcoin Gambling FAQ, we highly recommend you read our Bitcoin Betting & Bitcoin Sportsbooks page and Bitcoin At Online Gambling Sites – Step By Step Guide to get yourself familiarized with the various options in terms of either Bitcoin sportsbooks or professional sports you may find easy to bet on while using Bitcoin. If you use other cryptocurrencies besides Bitcoin to gamble we also have Litecoin Sports Gambling section.

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Alternative To Bitcoin Sports Betting – Litecoin Sports Gambling

What Professional Sports Can I Bet Using Bitcoin?

There is no end to what professional sports you can bet on using bitcoin. NFL football, NBA basketball, NHL hockey, and MLB baseball are the top professional sports in the US that can be bet on using Bitcoins. Below you will find our recommended sportsbooks that accept Bitcoins and other crypto currency for sports bets.

Do Sportsbooks Keep Their Bitcoins in “Cold Storage”?

Cold storage refers to keeping a reserve of bitcoins offline. Many bitcoin sportsbooks have instant withdrawals, but almost all operators keep most of their bitcoins offline in cold storage in case of security breach, such as a hack. They only keep enough on the server to handle their normal volume of withdrawals.

Is Bitcoin Legal?

It depends on your region, but Bitcoin is not illegal in most jurisdictions. To our knowledge, no one has been criminally prosecuted for buying bitcoins. Although, buying bitcoins can be harder in some countries compared to others. Many countries have laws about competing currencies or restrict access to Bitcoin exchanges. The U.S. Treasure classified Bitcoin as a decentralized virtual currency in 2013, but the government has yet to move on legislation. It isn’t expressly legal in the United States but is still largely unregulated.

Are There Other Digital Cryptocurrencies Besides Bitcoin?

Yes, almost too many to count. Some sportsbooks do accept other digital currencies, such as Litecoin. Wikipedia keeps a full list of all cryptocurrencies. As of July 2016, there are over 700 different cryptocurrencies. We do have a dedicated section for Litecoin Sports Betting

Is Bitcoin Anonymous?

As we mentioned in our introduction to Bitcoin, Bitcoin is not truly anonymous. It’s considerably more anonymous than paying with a credit card or through your bank account but not as anonymous as a face-to-face cash transaction. When transferring bitcoins do not require you to enter any personal information or confirm your identity, and there are routes that users can take to increase their privacy.

Recommended Online Bitcoin Sportsbooks 2018

sportsbetting best overall sportsbook
  • Accepts Bitcoin and Litecoin
  • Excellent and timely payouts
  • Competitive odds and excellent sportsbook for betting NFL, NBA or NHL.
  • Football-specific bonuses offered at the start of each season.
  • Large assortment of sports betting markets, including live betting, team and player props.

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Its 50% up to $1000 Welcome Bonus is massive and the payout times are fast. Sportsbetting is the top betting site in the industry and easily the most professional. They offer competitive odds in all sports and tons of NFL markets, from propositions to live betting.

BetOnline best sportsbook bonus
  • Accepts Bitcoin and Litecoin
  • Timely payouts guarantees
  • Posts NFL, NBA, and NHL odds earlier than other sportsbooks.
  • Takes up to $25,000 on NFL point spreads plus other popular sports bets.
  • Large deposit bonus, up to $2,500, and endless reloads.

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Why Bet At BetOnline?

New players receiving 50% up to $1000 on their first deposit online as its welcome bonus. BetOnline’s rise to one of the top sportsbooks online has been remarkable. They have a long history in the industry but have truly come on in the past few years.

Is Bitcoin Used for Illegal Transactions?

There is no doubt some people who afraid to use Bitcoin because they heard it’s the currency of drug dealers or arms dealers. Many have heard about the shutdown of the Silk Road, an underground market that operated on the “deep web” or “dark net.” The first thing to realize is that Bitcoin, despite its digital nature, is still money. Money, including all the fiat currencies around the world, like the U.S. Dollar, are used for illegal and legal things. Besides, sports bettors don’t need to send their bitcoins to the deep web or use a Tor browser to bet on the internet. Don’t use your bitcoins to buy drugs or hire hitmen. Stick to using them to bet online and you’re going to be fine.

Bitcoin Gambling And Taxes

Even though Bitcoin isn’t legal tender, you can still bet on most governments around the world wanting a cut of any gains and losses. Tax liability is usually still applicable regardless of the medium used. The IRS has guidelines for virtual currencies, including Bitcoin. Wages that are paid in virtual currency are taxable, but that’s not going to be an issue for most people. Gains and losses from exchange or sale of virtual currency are taxable as a capital asset. The law in this area is still new and complicated. If you’re dealing with a large number of bitcoins, we recommend talking to a tax professional.

What If I Send My Bitcoins to the Wrong Address?

Bitcoin’s Block Chain network is irreversible by design. Once a transaction is sent, there is no way to cancel or reverse them. With that said, it’s relatively hard to do this. Bitcoin addresses have a built-in check code. It’s usually not possible to send bitcoins to a mistyped address. However, in the rare case that the address is valid, the bitcoins will likely be lost forever. Copy and paste your Bitcoin addresses and you should have no issues.

Should You Use a Different Address for Each Transaction?

Yes, for ultimate security and privacy we using always suggest using a different address for each transaction. This is often done for you when using wallets or exchanges. It’s an available option at just about every place you can use bitcoins aside from paying merchants.

Are Exchanges Safe Places to Keep Bitcoins?

A lot of exchanges have been hacked. Mt.Gox was a Bitcoin exchange operating out of Japan that handled 70% of all bitcoin transactions. It was hacked for $450 million. Similar situations have occurred at other exchanges, such as Bitfinex. Ultimately, an exchange is not a safe place to store your bitcoins. Coinbase is the only exchange not to be hacked. However, as we mentioned in the step-by-step guide, it’s vital to send the bitcoins to a wallet before and after sending them to an online sportsbooks or any other gambling site. If you’re holding a lot of bitcoins and heavily invested crypto-currencies, we suggest extra security. Treznor is a Bitcoin desktop wallet that offers several security measures and functions as an offline wallet.

Does the Price of Bitcoin Fluctuate?

Yes, it’s possible that the bitcoins you bought a few hours earlier will be worth more or less than the value of your original purchase. Bitcoins may rise and fall based on financial markets or if an exchange is hacked. The fact that bitcoins can lose value can be a scary thought to some bettors, who are already gambling with the sportsbooks and don’t feel like taking a gamble on their currency as well. However, it’s worth considering that although Bitcoins do have price fluctuations, they’ve been one of the best investments over the past decade.

Bitcoins were $13 in December 2012. As of August 2016, they’re worth around $575. The currency has been as high as $1,250. If we take the mark of $13 and compare it to today’s price of $575, that’s an increase of over 4,300 percent. There hasn’t been an investment more valuable than bitcoins in quite a long awhile, so far anyway.

What is mBTC?

Players might see bitcoins referred to as ‘mBTC’ at a sportsbook or anywhere they might hold a balance. mBTC refers to the metric system. The M stands for milli, which indicates the unit to be one thousandth of the base unit.

What is Bitcoin Mining?

Bitcoin mining is the process of adding transaction records to Bitcoin’s “block chain” or public ledger of transactions. Past transactions are called the block chain because the list is a chain of blocks. The central function of the blockchain is to record transactions and confirm the transactions to the rest of the network.

Should I Hold a lot of Bitcoins?

That’s up to you. While we’re high on the digital currency for many reasons aside from online gambling, there’s still risks of a price crash. Bitcoin was one of the first cryptocurrencies, and by the most successful, but there’s always a chance another cryptocurrency emerges instead. As far as personal wealth, we don’t suggest keeping more than 20 percent of your net worth in bitcoins, and that is on the high end. Many early adopters of the currency became millionaires, but there are still plenty of risks. Crashes do happen and it may not be pretty.

Do Transactions Come with Fees?

When depositing at sportsbooks, most times the fees are covered. Bettors are usually not going to have to pay any extra fees when using Bitcoin-only sportsbooks. Some sites that take both fiat and crypto currencies will sometimes charge a small commission. As far as you sending bitcoins to other bitcoin addresses, well, there’s usually a few of a few cents per transaction. It can also be completely free. Paying a few cents expedites the transaction and gets the bitcoins there faster.

What Are Confirmations?

When someone sends payment with Bitcoin, receiving a notification is almost instant. With that said, there is a delay before theblockchainn network can confirm your transaction by including it into a block. A confirmation means that there is a consensus and that the bitcoins you are received are your property, and they haven’t been sent to another address. Each confirmation takes between a few seconds and an hour, with the average time being around 10 minutes per confirmation.

Individual users of Bitcoin and online sportsbooks can determine at which point they consider a transaction to be confirmed. Sportsbooks such as Nitrogen Sports, don’t require any confirmations. Almost all sportsbooks and most other sites that accept Bitcoin won’t usually require more than two confirmations.

About the Author

Joseph Falchetti

Joseph Falchetti

Editor-in-Chief, Pro Sports Bettor and Casino Expert

Joe is the author of the majority of sports betting pages on SBS and he serves as a gambling consultant to our content team. He's been mentioned on as a gaming analyst, and his articles have been linked by larger publications, such as the New York Times.

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