July 2022 – The Legal 500 Profiles

The landscape of online gambling has undergone a revolutionary shift with the introduction of cryptocurrencies. Cryptocurrency casinos, which are expected to achieve a market value of $65.7 billion by 2027, are becoming increasingly popular among players seeking enhanced privacy, faster transactions, and reduced fees. Nonetheless, understanding the complex legal framework governing cryptocurrency gambling can be daunting due to the diverse regulations in different jurisdictions. If you want to learn more about the world of bitcoin casinos, by following this link you can find additional information.

Understanding the Legal Landscape

Crypto casinos often operate in a legal gray area because existing gambling laws in many countries don’t specifically address cryptocurrency transactions. This leaves players to interpret the regulations themselves, which can be confusing. Here’s a closer look at how different countries handle the legality of crypto gambling:

Country-Specific Regulations

In China, both cryptocurrency transactions and online gambling are completely banned. This means that crypto gambling is unequivocally illegal for Chinese residents.

The UK has some of the most relaxed gambling laws globally. Online gambling is legal, but the UK Gambling Commission has strict regulations that casinos must follow. The use of cryptocurrencies must comply with the same standards as fiat money, including Know Your Customer (KYC) checks and social responsibility measures.

The legal status of online gambling, including crypto gambling, varies by state. States like New Jersey and Pennsylvania allow licensed crypto gambling, whereas others remain ambiguous. Offshore casinos operating in a gray area accept U.S. players without enforcing KYC policies, complicating enforcement measures.

In Canada, cryptocurrencies are legal, and online casinos must be regulated at a provincial level. Canadians can also use offshore crypto casinos safely. This dual option makes it convenient for Canadians to engage in crypto gambling without legal repercussions.

Australia has strict laws against most online gambling forms except for licensed sports betting. Recently, a draft bill was approved to ban the use of credit cards and cryptocurrencies for gambling. This bill, once enacted, will make crypto casinos illegal in Australia, although enforcement may remain a challenge due to the anonymous nature of cryptocurrency transactions.

Compliance and Enforcement Challenges

One of the primary challenges in the regulation of crypto casinos is the decentralized nature of cryptocurrencies. The lack of a central authority makes it difficult for governments to enforce gambling laws effectively. For example, the UK Gambling Commission mandates KYC checks regardless of the payment method, ensuring that casinos that are licensed and serving UK players comply with anti-money laundering regulations.

Most reputable crypto casinos, like those licensed in Curaçao, offer lenient regulatory and tax environments. These casinos typically avoid KYC procedures, thus complicating law enforcement in jurisdictions with stringent gambling laws.

Tax Implications

Taxation on gambling winnings and cryptocurrencies is also a significant area of legal consideration. The tax treatment varies from one country to another:

United States: Gambling winnings are treated as taxable income, and this includes crypto gambling.
United Kingdom: Gambling winnings are not taxed, but capital gains on cryptocurrencies are subject to taxation.
Canada and Australia: No taxes on gambling winnings unless gambling is the primary source of income. However, capital gains on cryptocurrencies are taxed.

These varying tax implications make it essential for players to understand their local tax laws to avoid potential legal issues.

Crypto Sports Betting: An Emerging Trend

Crypto sports betting offers several advantages over traditional sports betting, including greater anonymity, faster transaction times, and lower fees. Bettors can wager on sports events using cryptocurrencies, enjoying the added benefits of financial privacy and efficiency. Here are a few tips for first-time bettors:

Research: Understand both the sports and cryptocurrency markets you’re betting on.
Start Small: Place smaller bets initially to minimize risk as you become accustomed to the process.
Use Reputable Platforms: Ensure the sports betting site you choose has a solid reputation, robust security measures, and a valid license.

Tether Casinos: A Stable Alternative

For gamblers who prefer to avoid the volatility associated with cryptocurrencies like Bitcoin and Ethereum, Tether (USDT) casinos offer a stable option. Tether is pegged to the US dollar, providing stability and reducing the risk of fluctuating values affecting betting outcomes.

When selecting a Tether casino, consider factors such as licensing, user reviews, available sports and events, and the platform’s security features. The stability offered by Tether makes it an attractive choice for those who want the benefits of crypto transactions without the risk of market volatility.

Conclusion

Staying on the right side of the law in crypto gambling requires understanding the diverse and evolving regulatory landscape. Due diligence is essential; players must research their local laws and choose licensed, reputable platforms to ensure a legal and enjoyable gambling experience.

As the industry evolves, so do the opportunities for bettors worldwide to engage in this modern form of gambling. For additional insights into the gambling regulations, you can review the UK Gambling Commission’s guidelines. By staying informed and cautious, players can enjoy the benefits of crypto gambling while minimizing legal risks.

Law firm Shoosmiths has today announced its year end results for FY 2021/22 in the firm’s annual Impact Report.

The firm has achieved another year of record financial results in relation to its revenue, profit and profit per equity partner (PEP). Revenue increased eight percent year-on-year to £181.8m, net profit also increased by nine per cent year-on-year to £60.7m and PEP increased by 3 per cent to £675,000.

As a result of the firm’s ongoing success driven by its people, Shoosmiths was able to invest in a comprehensive range of rewards designed to both recognise the significant contribution of its people in delivering these results, whilst also recognising the challenges they face because of the current economic climate.

Specifically, the firm brought forward its annual pay review by two months, made a discretionary ‘thank you’ payment equal to 3% of salary to all its staff in May, as well as providing for an additional payment of £1,000 for all employees in September, to help with the cost-of-living impact.

The firm’s annual Impact Report, which was released today and can be viewed here, also shows the progress the firm has made in relation to its clients, people, ESG (environmental, social and governance), financial performance and innovation.

Commenting on these results, David Jackson, CEO at Shoosmiths, said:

“This is a very exciting time for us all at Shoosmiths. The firm is thriving, and I am so proud of the amazing people at our firm who have played a significant part in achieving the record financial performance we’re announcing today.

“Of course, we don’t just measure our success by financial metrics. In fact, more importantly, we measure it on making a positive impact for our clients, each other, and the communities in which we operate.

“We’ve continued to be bold when it comes to supporting our clients’ needs. It’s why we opened our first international office in Brussels, and it’s also why we continue to trailblaze with innovation, developing exciting new products to help our clients work smarter, faster and better.

“In the past year, we’ve set about future-proofing our offices, creating exceptional client facilities and modern working environments so that our people can flourish in a hybrid world and fulfil their potential.

“We’re also continuing to support our communities in some really important areas including, for example, through our Shoosmiths Foundation which is already starting to see and measure the impact of the grants it has made to charities that do great work to reduce the social mobility gap. We’re also proud to see our Carbon Net Zero statistics move in the right direction and were thrilled that our science-based emissions reduction targets were validated by the Science Based Targets initiative (SBTi). Our related and important work with the UN Global Compact continues, ensuring that we’re sharing and receiving knowledge, insight and best practice.

“This is only a snapshot of what we’ve achieved over the last year. Having just implemented a bold new strategy that will unify us in the pursuit of excellence for the benefit of our clients and each other, we’re confident that Shoosmiths will continue to prosper and set impressive standards in the delivery of law.”