Category Archives: Legal

Everything you need to know about Bitcoin gambling

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Everything you need to know about Bitcoin gambling

The bitcoin is currently the most popular cryptocurrency used around the world. People are able to earn bitcoins in competitions where users offer their computing power to verify and record bitcoin transactions into the blockchain. This is also known as miners. Successful miners are rewarded with transaction fees and newly created bitcoins. Like most currencies, bitcoins can be exchanged for other currencies. Over 100,000 merchants and vendors now accept bitcoin as payment, including betting sites. It is predicted that gambling represents between 50-60% of all Bitcoin transactions.

Bitcoin gambling comes in various forms, ranging from casino games with live dealers to sports betting sites. These are the most popular forms of bitcoin gambling that are currently available. Much like regular betting, users are able to place bets but use the bitcoin currency instead of pounds or dollars. These bitcoin gambling sites also offer promotions like regular bookmakers such as deposit bonuses for new and existing members.

Bitcoins

Certain bitcoin sites provide proof that they are operating a legitimate bitcoin gambling site by providing evidence for provably fair games. By providing evidence that they are provably fair, it shows that the odds are not overwhelmingly stacked against the players. These sites are highly recommended for bitcoin gamblers. Sites that don’t provide this evidence tend to be avoided as there is the risk that your winnings might be taken by the operator rather than paid out. Bitcoins are unable to be refunded so if your operator steals it, you won’t see it again.

Like the majority of gambling sites, users of bitcoin gambling sites are offered the same or similar ‘services’. Casino games are currently bet on the most by bitcoin gamblers, with multiple sites being solely dedicated to casino games. Bitcoin gamblers can also bet on poker and blackjack games, dice games, and sport games. There are even some sites that allow users to Forex trade using bitcoin. Bitcoin Binary Options gambling has recently become very popular amongst Bitcoin gamblers. Its simplicity and fast, easy nature of buying and contracts and trading makes it a popular choice for gamblers.

As bitcoin is a ‘virtual currency’, bitcoin gambling is not limited to the typical games that you would find in a casino. You can expect to find alternative methods of gambling such as predictions, races, wheel of fortune, challenge, flip coins, and chain games on specific bitcoin gambling websites. Although bitcoin gambling may be similar to ‘regular’ gambling in some aspects, there are also other aspects which make it different. As mentioned earlier, bitcoin gamblers tend to have a wider range of games to play. Alternative games such as wheel of fortune and chain games are usually not available on other gambling sites, whereas they are available on bitcoin gambling sites. Players are also able to receive their winnings in seconds and avoid any transaction fees.

Overall, it seems that bitcoin gambling on a whole is a positive section of the gambling community. The wide range of games to play and bets to place make it an attractive option for any gambling enthusiast, especially those that like to receive their winnings almost instantly and avoid transaction fees. Although anonymous operators can be intimidating for newcomers to bitcoin gambling and a potential risk, there are plenty of legitimate sites out there. Despite this risk, the pros far outweigh the cons and it looks like bitcoin gambling will be a legitimate ‘section’ of the gambling community for the foreseeable future.

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For more information on Bitcoin check out the following sites:

Blackjack in Montana ???

Bill would legalize blackjack in Montana, tax tables

FREDDY MONARES, University of Montana School of Journalism Published 4:33 p.m. MT March 15, 2017

HELENA — Rep. Wylie Galt, R-Martinsdale, said generating revenue for the state can be as simple as counting to 21, meaning, playing blackjack.  House Bill 578 would legalize the card game, for both tabletop and video play.  The bill also allocates a $500 tax on each blackjack table to the state’s Department of Justice and a state special revenue account — $100 going to the DOJ, and $400 to the account.  … CLICK HERE FOR FULL ARTICLE

Some history of gambling in Montana can be found at the Montana Department of Justice site.  From their site:

The Montana Legislature has authorized limited legal gambling in Montana. Poker, keno, bingo, and video line gambling machines are legal with a maximum $2 bet and $800 payout. Legal live games include: raffles, bingo, keno, panguingue, poker and shake-a-day. Sports pools, fantasy sports leagues and sports tab games are also legal. These are non-banking games in which players bet against and settle with each other rather than betting against and settling with the house.

The legal age for gambling in Montana is 18, with the exception of raffles conducted by churches, schools, charitable and nonprofit organizations. Children under 18 years old may participate in these.  LINK

Casino threatens to confiscate winnings for using your brain!

Princess Casino House RulesI’ve seen similar Casino House Rules posted in front of casinos before but I thought it might be interesting to bring a specific “idiotic” house rule to the public’s attention.  

Let’s be clear, “card counting” is the simple use of your brain.  It is not illegal anywhere because using your brain is not illegal.  For a casino today to still threaten confiscation of winnings for using your brain is idiotic.  How many lawsuits do we have to win until someone changes the wording in these Casino House Rules?

Princess Casino House Rule: Card Counting

It is OK for casinos to not like it when players “count cards”.  It is OK for casinos to back off proficient players.  But to threaten players using wording as shown above is simply bad business.

 

Casinos As Spies For The Federal Government

The following notice has not been
approved by any government official.
(In fact, some of them would probably be
unhappy to see this warning published.)

WARNING TO ALL CASINO PATRONS
By  Professor I. Nelson Rose

If you win big, are a high roller, or do anything that a casino or the government regards as suspicious, you will be reported to the U.S. Treasury Department’s Financial Crimes Enforcement Network, commonly known as FinCEN. The information will be made available to the IRS and your local law enforcement agency. Expect your taxes to be audited. If you are ever involved in a messy lawsuit, your opponent may be able to obtain some of this information by subpoena, to show, for example, how much cash you used for gambling. The casino will not always tell you when it files these reports; in fact, under some circumstances, it is not allowed to let you know that you have been reported to FinCEN.

Scary, isn’t it?

All businesses are supposed to report cash transactions over $10,000. But only “financial institutions” are required to file detailed reports and have compliance programs in place to make sure the reports get filed. And only “financial institutions” have to report “suspicious activities” involving more than $3,000 to FinCEN.

It may come as a surprise to most players and even executives in the gaming industry that large casinos and card clubs have been defined as “financial institutions.”

It will certainly be a shock to most players to learn that they may be the subject of secret reports filed by casinos with the federal government.

All casinos and card clubs with gross annual gaming revenues in excess of $1 million must file Currency Transactions Reports (CTRs) with the federal government every time a player has a cash transaction of more than $10,000. This includes players using currency to buy chips, deposit front money, pay off markers, make large wagers or collect large winning bets.

The last is particularly interesting, because the original purpose of CTRs was to track crooks who were using casinos for money laundering, like a drug dealer who bought gaming chips with $25,000 in small bills, made a few token bets, and then asked for a cashier’s check for his remaining chips.

In the mid-1980s Nevada officials, including its then-powerful Republican senators, convinced the federal government that there was no need for casinos to file CTRs when the cash was paid by casinos. Nevada enacted Regulation 6A, which required casinos to file CTRs only with the state, and only for transactions that might involve dirty money, like cash buy-ins or marker payments.

But Nevada gaming officials, apparently at the request of the federal government, changed the rules in 1997. All currency transactions of more than $10,000, even slot jackpots paid out in cash, now have to be reported. And today CTRs are filed with the IRS, not with the state.

The U.S. Congress, which is supposedly the body that actually makes the laws, had established complicated rules for withholding taxes of gambling winnings, but only under special circumstances. For example, a sports book has to withhold 28 percent of the amount won, but only if it is more than $5,000 and at least 300 times as large as the amount bet.

For years the IRS has gone further by requiring casinos to report big wins at bingo, slot machines and keno, even though no money was withheld for taxes.

Today, a CTR must be filed on every patron who cashes out for more than $10,000 in currency — no matter what the game and even if the player has lost money gambling.

The regulations also used to require that casinos obtain identification from the player before filing a CTR.

Today, a casino does not have to ask for a player’s i.d. if it already has the patron’s name, address and similar information. This eases the casinos’ workload and prevents disruptions. But it also means high-rollers do not have to be told when the casino files CTRs with the IRS.

The reason for the changes is simple: The Treasury Department has admitted that one of its primary goals is to go after untaxed cash transactions that have nothing to do with money laundering.

But Treasury still wants to catch drug dealers. So, it has taken the next step: Suspicious Activity Reports – Casinos or SARCs, to be filed with FinCEN.

As this is being written, only Nevada casinos have to file SARCs, although FinCEN intends to require all casinos and card clubs to report suspicious activities.

What exactly is a suspicious activity?

The amount does not have to be more than $10,000; a total of $3,000 or less can trigger a report. Nor does it have to involve any currency.

FinCEN likes to say the standard is know your patron. But the actual regulation is more vague, including phrases like a casino employee has reason to suspect that the transaction has no business or apparent lawful purpose.

Casinos face large fines if they fail to report suspicious transactions, and they cannot be sued for filing SARCs when players were doing nothing wrong. So, when in doubt, casinos will err on the side of filing reports on their patrons.

It is against the law for a casino to tell a player that it has reported his suspicious activity to FinCEN.

This might catch more crooks. But it is hard to picture casino executives as secret police.

Professor Rose can be reached at his Web Site:
GamblingAndTheLaw.com

#66 ©2000, all rights reserved worldwide. Gambling and the Law™ is a registered trademark of Professor I. Nelson Rose, Whittier Law School, Costa Mesa, CA.