Why Regulators Refuse to License Crypto Casinos

Some regulators deny licences to crypto casinos due to money-laundering risks, anonymity concerns, and uneven global rules.

In the past couple of years, certain regulatory bodies around the world have chosen not to license crypto casinos, or have imposed really stringent restrictions, citing various concerns, whether legal, technical or based upon consumer protection.

The practice is more prevalent in well-established jurisdictions where there are very strong gambling laws, like the UK, EU member states, and Australia.

Anti-money-laundering (AML) & KYC concerns

Cryptocurrencies have become an increasingly popular means for financial transactions. However, with rising popularity comes concern about their use in illegal activities, including money laundering.

They are, after all, often valued for the fact that they are pseudonymous in nature, so it becomes very difficult for regulators to ascertain reasonable compliance with Know-Your-Customer (KYC) verification checks.

Some regulators consider crypto casinos high risk due to limited traceability and weak identification procedures.

Lack of consumer protection & transparency

Transactions that use crypto are typically irreversible and hard to trace. As a result, this could leave you with basically no options for addressing suspected fraud.

Naturally, regulators focus on keeping customers safe, so this makes them cautious about systems that could allow underage or vulnerable players easier access to gambling. However, regulatory approaches around the world to crypto casinos are inconsistent.

Some jurisdictions, such as Malta and Estonia, offer licenses that are very compliance-heavy, with some AML/KYC and technical standards to meet, while others have outright bans on crypto gambling.

Enforcement challenges

In countries like the U.S., the UK, and China (where gambling regulations are considered strict), it's common to block or refuse licenses to crypto casinos. Especially those that are based offshore.

But enforcing those laws can be a headache. After all, gamblers often get around those local restrictions by using VPNs to play at casinos.

Down in Australia, the Communications and Media Authority (ACMA) has gone ahead and blocked more than 1,500 offshore casinos that were found to be operating illegally.

The European Securities and Markets Authority (ESMA) recently criticised Malta’s financial regulator, as it did not do enough under the compliance of MiCA to assess the level of risk associated with giving crypto licenses.

Malta's Financial Services Authority (MFSA) said that they are proud of its role as an "early adopter" of digital asset regulation. However, they did not directly address ESMA's criticism.

Where refusals or restrictions are most common

The UK Gambling Commission is probably one of the most organised gambling frameworks in the world. While they don’t explicitly endorse cryptocurrency gambling, the Gambling Act permits licensed operators to accept crypto deposits, given that they go through strict AML protocols.

The Commission stated that operators must convert cryptocurrencies to fiat values in player accounts to ensure transparency.

The United States has the most intricate regulatory framework among all nations, since each state has its own gambling laws. Nevada is starting their regulatory structures for Bitcoin-based casinos, while Utah enforces complete gambling bans for all payment types.

China has one of the toughest positions out there when it comes to cryptocurrency and gambling. They've pretty much banned all cryptocurrency transactions and most types of gambling.

While Japan is actually moving towards legalising cryptocurrencies, it's still keeping a close eye on gambling, particularly with digital assets.

The future of crypto gambling regulation

Regulatory bodies have reason to refuse or be hesitant to license crypto casinos, when you consider that they could go around AML/KYC safeguards and complicate consumer protection.

Blockchain technology is constantly evolving, and regulators face pressure to develop frameworks that suit this. However, cryptocurrency has permanently altered the landscape, and how regulators respond to this will have an effect in the years to come.

Do you enjoy this article?

Share your experience on Trustpilot

By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

Learn about our Review Process

Anything incorrect or missing?

Last updated: August 15, 2025

Let us know

Most Popular

Pragmatic Play's mega slot releases worth playing in 2026

Prediction markets are coming for iGaming, and Gen Z is already there. Expert insights included

Google has blocked over 270 million illegal gambling ads in 2025

Evoke agrees to a £243m William Hill takeover by Bally's Intralot

Ontario's market success sets the stage for Alberta's upcoming launch

{"3":{"n":"Games Global","i":"11-2025\/games-global-icon.png"},"4":{"n":"NetEnt","i":"netent-icon1.png"},"11":{"n":"Novomatic","i":"novomatic-icon-1.png"},"12":{"n":"Play'n GO","i":"play-n-go-icon1.png"},"13":{"n":"Big Time Gaming","i":"btg-icon-1.png"},"14":{"n":"Barcrest","i":"barcrest-icon-1.png"},"15":{"n":"WMS","i":"wms-icon-1.png"},"16":{"n":"NYX Interactive","i":"nyx-icon1.png"},"17":{"n":"NextGen Gaming","i":"nextgen-icon.png"},"18":{"n":"IGT","i":"igt-icon-1.png"},"19":{"n":"Yggdrasil","i":"yggdrasil-icon-1.png"},"20":{"n":"EGT Digital","i":"egt-digital-icon.png"},"21":{"n":"Betsoft","i":"Betsoft-icon.png"},"22":{"n":"Evolution","i":"evolution-icon-1.png"},"23":{"n":"Merkur Gaming","i":"merkur-gaming.png"},"24":{"n":"Thunderkick","i":"thunderkick-icon.png"},"27":{"n":"Aristocrat","i":"11-2025\/Aristocrat-gaming-icon.png"},"28":{"n":"Playtech","i":"Playtech.png"},"29":{"n":"Quickspin","i":"11-2025\/quickspin-icon.png"},"30":{"n":"Bally Gaming","i":"Bally-Gaming-icon.png"},"31":{"n":"Light & Wonder","i":"11-2025\/Light-and-Wonder-icon.png"},"34":{"n":"Pragmatic Play","i":"Pragmatic-Play-icon.png"},"35":{"n":"Push Gaming","i":"pushgaming-icon.png"},"36":{"n":"Relax Gaming","i":"relax-gaming-icon.png"},"37":{"n":"Hacksaw Gaming","i":"hacksaw-gaming-icon.png"},"38":{"n":"Nolimit City","i":"nolimit-city-icon (1).png"},"39":{"n":"Amatic","i":"amatic-icon(1).png"},"40":{"n":"BGaming","i":"BGaming-icon.png"},"41":{"n":"Blueprint Gaming","i":"blueprint-gaming-icon.png"},"42":{"n":"ELK Studios","i":"elk-studios-icon.png"},"43":{"n":"Ezugi","i":"ezugi-icon.png"},"44":{"n":"Gamomat","i":"gamomat-icon.png"},"45":{"n":"Habanero","i":"habanero-icon.png"},"46":{"n":"iSoftBet","i":"isoftbet-icon1.png"},"47":{"n":"Playson","i":"playson-icon.png"},"48":{"n":"Red Tiger Gaming","i":"redtiger-icon(1).png"},"49":{"n":"Wazdan","i":"wazdan-icon(1).png"},"50":{"n":"Amusnet","i":"amusnet-icon.png"}}

{"2":{"n":"VISA & Mastercard","i":"VISA-MasterCard-Icon-1.png"},"3":{"n":"Skrill","i":"Skrill-Icon-1.png"},"4":{"n":"Neteller","i":"Neteller-Icon-1.png"},"5":{"n":"Paysafecard","i":"Paysafecard-Icon-1.png"},"7":{"n":"Pay N Play","i":"Pay-N-Play-Icon-1.png"},"9":{"n":"iDebit Canada","i":"iDebit-Icon-1.png"},"10":{"n":"Entercash","i":"Entercash-Icon-1.png"},"11":{"n":"iDeal","i":"IDEAL-Icon-1.png"},"12":{"n":"Citadel","i":"Citadel-Icon-1.png"},"13":{"n":"Payz","i":"payz-icon.png"},"14":{"n":"Sofort","i":"sofort-icon-2.png"},"15":{"n":"Bank Transfer","i":"Bank-Transfer-Icon-1.png"},"16":{"n":"Zimpler","i":"zimpler-icon.png"},"17":{"n":"PayPal","i":"PayPal-Icon-1.png"},"18":{"n":"Apple Pay","i":"Apple-Pay-Icon-1.png"},"20":{"n":"Cheque","i":"Cheque-Icon-1.png"},"21":{"n":"Bitcoin","i":"Bitcoin-Icon-1.png"},"22":{"n":"Euteller","i":"Euteller-Icon-1.png"},"23":{"n":"Trustly","i":"Trustly-Icon1.png"},"24":{"n":"Instadebit Canada","i":"Instadebit-Icon-1.png"},"25":{"n":"UPI","i":"upi-icon.png"},"26":{"n":"RuPay","i":"RuPay-icon.png"},"27":{"n":"PayTM","i":"paytm-icon.png"},"28":{"n":"AstroPay","i":"astropay-icon.png"},"29":{"n":"Jeton","i":"jeton-icon.png"},"30":{"n":"MuchBetter","i":"muchbetter-icon.png"},"31":{"n":"Interac","i":"Interac-icon.png"},"32":{"n":"Swish","i":"Swish-icon.png"},"33":{"n":"POLi","i":"poli-icon.png"},"34":{"n":"Neosurf","i":"neosurf-icon.png"},"35":{"n":"Siirto","i":"Siirto-icon.png"},"36":{"n":"Coinbase","i":"coinbase-icon(1).png"},"37":{"n":"Binance","i":"Binance-icon(1).png"},"38":{"n":"Kraken","i":"kraken-icon.png"},"39":{"n":"Ethereum","i":"ethereum-icon(1).png"},"40":{"n":"Dogecoin","i":"dogecoin-icon.png"},"41":{"n":"Litecoin","i":"litecoin-icon.png"},"42":{"n":"MB WAY","i":"4-2026\/MB-Way-icon.png"},"43":{"n":"Multibanco","i":"4-2026\/Multibanco-icon.png"},"44":{"n":"Bizum","i":"5-2026\/Bizum-icon.png"}}

Why regulators refuse to license crypto casinos

Anti-money-laundering (AML) & KYC concerns

Lack of consumer protection & transparency

Enforcement challenges

Where refusals or restrictions are most common