According to Grand View Research, the global online gambling market is expected to reach around NZD 246 billion by 2030. Online games have become a popular form of entertainment for a long time. With the development of technology, more and more people are turning to cryptocurrencies as a means of betting.
The text presents both the main advantages and some downsides of using digital currencies. In addition, there’s information on how the crypto industry is organised in New Zealand. This article also compares the UK and the USA markets.
Crypto Online Gambling Landscape in NZ
Several key elements keep New Zealand online casinosregulated and stable. Below, there’s more information on this issue and the wide range of crypto gambling in the country.
Blockchain Transactions in $1 Deposit Casinos
Cryptocurrency has revolutionised the gambling industry, with the first blockchain casino launched over a decade ago. Since $1 deposit operators at CasinoDeps are on the rise in New Zealand, many reputable brands offer various crypto payment options like Bitcoin, Ethereum, Litecoin, Ripple etc for the smallest transactions.
$1 deposit crypto payments at casinos offer a convenient, secure, and flexible way for gamblers to enjoy gaming with minimal financial commitment. Digital currencies can be easily divided into small units, making them ideal for microtransactions like $1 deposits.
Regulatory Bodies Governing Gambling and Cryptocurrency
Gambling in New Zealand is regulated by the Ministry of Internal Affairs through the Gambling Act 2003. Betting is completely legal and widespread among New Zealanders, but the regulations have certain limitations. According to the law, anyone can try their luck if they are over 18 years old.
However, the New Zealand legislation controls only a range of gambling games such as bingo, sports betting, bingo, and everything else that is held in land-based casinos. Unfortunately, the same cannot be applied to the online industry, as only offshore operators are allowed in the country.
Nevertheless, a wide range of foreign providers are also available for the residents. Usually, they offer a wide range of payment methods, including cryptocurrencies. The most popular are Bitcoin, Ethereum, and Dogecoin.
In addition, New Zealand is a country with a lack of clarity and established rules regarding cryptocurrencies. But the biggest advantage here is that no regulation would ban such a payment option. However, there’s no hope that this will help to avoid taxation.
Although there are no specific legal regulations and rules for cryptocurrency gambling, any activity involving money transactions must comply with FMA, the main regulator. Therefore, players who withdraw their prizes in this way will have to pay a percentage of their winnings depending on the final income. In most cases, the total rate to be paid ranges from 10.5% to 39%.
Benefits and Drawbacks of Using Crypto for Gambling
According to official data from Statista, in 2023, more than 4.5 thousand casinos, both online and offline, operated worldwide. The online gambling industry is gaining popularity, and the boundaries of financial methods are expanding every year.
Cryptocurrencies as a payment option have been available in some casinos since 2012. Such transactions, like any other, have a number of advantages and several drawbacks because it’s quite difficult to achieve perfection in financial systems:
- Providing complete anonymity and confidentiality. Transactions can be performed without disclosing personal details.
- Blockchain technology offers a high level of security and transparency in financial operations.
- Cryptocurrency deals are faster than bank transfers or other traditional payment methods.
- This modern type of payment avoids high bank fees and other charges, which makes them more profitable for players.
- The cryptocurrency market is unstable, so the amount on the account may vary.
- Not all online casinos accept cryptocurrencies, which can limit the choice for users.
- The lack of clear regulations can create legal uncertainty for both players and casino operators.
- Even though blockchain technology is safe, there are risks of cyberattacks.
Market Size and Statistics
The online casino market in New Zealand continues to grow and is expected to reach over NZD 145 million in 2024. There will be more and more cryptocurrency lovers, because who doesn’t enjoy fast and smooth operations?
The market volatility of the past few years has not stopped users from buying cryptocurrencies and conducting various transactions. Investing in digital currency is not taxed in New Zealand, as the government only considers income.
Alternative Approaches to Crypto Online Gambling
The New Zealand government still faces a lot of challenges to improve the regulation of cryptocurrency gambling. Check out below how such transactions are regulated in the UK and the USA and what are the specifics.
United Kingdom’s Crypto Gambling Approach
The UK gambling industry is controlled by the UK Gambling Commission. One of the main requirements of the authority is that operators must verify the identity of players to prevent underage gambling. That’s the so-called Know Your Customer (KYC) rule. Cryptocurrencies are built as a decentralised and anonymous system, so they do not fit into the framework of the rules established by the commission.
The high volatility of digital currencies and the absence of a central regulatory body puts them in a juridical grey area. That’s why cryptocurrencies are not prohibited in the UK, but gambling sites that use this payment method are not currently licensed here. Therefore, some crypto-gambling platforms can operate outside the official rules.
In addition, traditional online gambling laws in the UK focus on fiat currencies. This means that they are regulated by recognised financial institutions and governments. As a result, despite great innovation, it’s hard for cryptocurrencies to fit into the UK market.
After all, the anonymous nature of blockchain makes it difficult to trace the source of funds and the identity of users. The UK government fears a potential problem of increased illegal activity through cryptocurrencies.
Crypto Gambling in the USA
In the United States, gambling is regulated on a state-by-state basis, which creates a diverse mix of approaches to digital currency gambling. At the moment, there’s no law prohibiting Bitcoin or crypto betting. Certain states have different rules regarding online casinos in general, and some may extend them to crypto gambling.
Therefore, unfortunately, the legal landscape of digital currency remains a bit unclear here, as well as in New Zealand and the UK. For example, states such as New Jersey and Pennsylvania have allowed online casinos and poker sites to operate legally.
However, they are obliged to use only traditional payment methods. At the same time, Washington and Louisiana have laws that directly prohibit all forms of online casino gambling, including bitcoin betting. Therefore, crypto banking falls into a dark zone in the US, as there are no specific laws to help manage it.
Closing Thoughts
New Zealand cannot boast of the most successful solution for regulating cryptocurrency gambling. Nevertheless, the industry continues to develop and attract new players. Compared to the UK and the USA, it’s noticeable that the New Zealand market requires improvement in adapting to changes in the blockchain sphere.
However, thanks to such transaction advantages as speed and anonymity, there’s hope that the situation will improve.
