British gamblers may be allowed to pay with crypto

Accepting crypto payments at online casinos is being considered. Syed Rahman summarises the issues involved.

Gamblers may soon be able to pay for bets in cryptocurrencies.

The UK’s gambling regulator, the Gambling Commission, is examining the possibility of allowing cryptocurrency payments at licensed online casinos.

Tim Miller, the Commission’s executive director for research and policy, told the Betting and Gaming Council’s annual general meeting that the regulator is examining the potential for using “cryptoasset as a consumer payment option for licensed and regulated gambling in Great Britain.”

Miller said the Commission has asked the Industry Forum, a group representing gambling sector professionals, to identify possible ways that crypto payments could be accepted.

The Commission has referred to the possible consumer protection benefits that could arise from gambling payments being made in crypto to firms subject to Financial Conduct Authority (FCA) regulation. It has said its research has provided evidence that crypto is one of the two biggest online searches that currently lead British gamblers to illegal gambling sites. Enabling crypto payments to regulated firms would not remove this problem entirely, as illegal sites would continue to operate. But it could reduce the scale of the problem.

Rules

The Commission’s statements come as the FCA finalises its proposed rules for cryptoasset firms. In its consultation, the FCA lays out its requirements regarding governance, operational resilience, financial crime controls and Consumer Duty obligations. These requirements will apply to any firm offering regulated crypto services, including those in the gambling sector.

Firms wanting to carry out regulated cryptoasset activities (including those already carrying them out) will need full authorisation under the Financial Services and Markets Act once the FCA’s crypto regulation regime comes into effect in October 2027.