There is the loaded question making rounds online as to whether betting with bitcoins is legal. The reason why one would consider it loaded is that the issue is primarily answered with “it depends.” There are countries where gambling is entirely illegal such as Japan, Singapore, and the UAE. Therefore, if the land you dwell in has laws against gambling, then the answer would perhaps be yes, it is illegal, while those in other countries would say the opposite.
What one has to appreciate though is the introduction of bitcoins and the fact that no single government or central bank regulates it. It is also anonymous, meaning that one does not have to reveal their identity to take part in an online gambling game as they otherwise would have to use traditional payment methods. It is perhaps for this aspect that more people are turning to bitcoins because they don’t want to find themselves on the other side of the law when they come knocking if their credit card is affiliated with a gambling site.
Another aspect to keep in mind about betting using bitcoins is that it is a global currency with no borders. It is the same with betting companies that operate in countries with more lax rules about betting that allows people from all corners of the globe to gamble using their site. This dynamic adds to the role with which technology and the internet have marred the boundaries of the world as we know it. Therefore, with bitcoins and the anonymity of it makes it easier for gamblers to engage in games that their local banks would otherwise not allow them to.
In as much as there are countries where gambling is illegal, gambling using bitcoin has created loopholes where people can gamble without the fear of getting caught (for the most part). While it is not what ideal citizens ought to do, it has for the most part given people who wish to partake in this form of entertainment the opportunity to do so. Given that bitcoins are still a somewhat new phenomenon that governments are to embrace, there is yet to be a law that categorically states that gambling using bitcoins is illegal and that argument is what most people use to justify doing so even in jurisdictions where gambling is prohibited.
That said, there are countries where gambling is legal, and therefore the question does not come into play. Citizens of countries like Australia have the luxury of betting and thus doing the same with bitcoin is natural to them. In such states, the systems have evolved in somewhere the government event tax a person’s earnings.
Therefore, to answer the question if gambling using with bitcoins is legal requires one’s assessment of the country they live in and the implications of the laws governing gambling. There is, therefore, no right answer, just information within a nation that would allow a person to arrive at the correct conclusion.