Bitcoin Use to Increase at Online Bingo Sites

Today bitcoin is one of the hottest topics for online bingo and casino operators. The use of the anonymous virtual currency could reopen the American online gaming market. One Canadian poker site has announced plans to use bitcoins for deposits and withdrawals. Industry observers are sure to keep a close eye on the poker site to see how successful the use of bitcoins will be. Bitcoins allow players to avoid traditional financial networks subject to scrutiny by government regulators and law enforcement officials. Most online bingo and gaming experts say that bitcoin based gambling will increase this year. Currently 2,000 online merchants accept bitcoins.

Michael Hajduk has invested significant amounts of money and time developing his poker website. Hajduk’s Calgary based Infiniti Poker plans to accept bitcoins when it is launched this month. Hajduk said that the use of bitcoins will help American players avoid problems with federal officials. Currently US laws prohibit financial institutions and online payment processors from handling any internet gambling transactions. Hajduk told reporters “Because we’re using Bitcoin, we’re not using U.S. banks—it’s all peer-to-peer. I don’t believe we’ll be doing anything wrong.”

Bitcoin was developed in 2009 by a reclusive programmer named Satoshi Nakamoto. Bitcoins behave like other currencies and exchange rates fluctuate according to demand. Bitcoins are currently worth about $13 USD. Transactions are processed through a peer to peer network avoiding traditional financial networks. Last year Bitcoin received a lot of adverse publicity because of the currency’s association with the illegal drug selling website Silk Road. According to Nicolas Christin, the associate director of Carnegie Mellon’s Information Networking Institute, Silk Road processes about $1.2 million monthly in illegal drug sales.

Bitcoin’s peer to peer network puts it beyond the reach of puritanical prosecutors. Because if its anonymous design there is no way to verify the nationality of any bitcoin user making transactions impossible to trace. In 2012 the price of one bitcoin rose from $4.75 to $13.50 and bitcoins are traded much like any other currencies. Online bingo players can purchase bitcoins using exchanges like Mt. Gox. Surprisingly bitcoins may be purchased at Wal Mart stores and 7 Eleven stores across the US. Since the US internet gambling market is worth about $4 billion to $6 billion the US market remains an attractive target for online gaming operators. According to Martin Williams, the Asia editor of Gambling Compliance, bitcoins pose some legal challenges to governments. Williams stated “Bitcoin poses some new legal challenges for financial authorities. I suspect that much of it will involve playing catch-up, as with so many other things relating to the Internet.”

Online Bingo Reviews

Subscribe for Newsletter

We respect your email privacy
Read our privacy policy
Protected by Copyscape Original Content Checker
Visit Us On Twitter