How to Start Betting with Bitcoin in the UK

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While the UK has a highly regulated gambling market under the UK Gambling Commission (UKGC), there’s a growing interest among players in using Bitcoin and other cryptocurrencies for online betting. It’s important to understand the landscape: operators licensed by the UKGC are currently not permitted to accept cryptocurrencies directly.

This means that for UK players to bet with Bitcoin, they typically need to use offshore crypto betting sites that hold licenses from other jurisdictions (most commonly Curaçao or Anjouan). While these sites offer the benefits of crypto, UK players should be aware that they operate outside the direct regulatory oversight of the UKGC.

Here’s a step-by-step guide on how to start betting with top crypto betting sites  in the UK:

 

Step 1: Acquire Bitcoin (or other Cryptocurrencies)

 

If you don’t already own Bitcoin, this is your first crucial step.

1. Choose a Reputable Crypto Exchange:
   • Popular Options for UK Users (FCA-registered for crypto services): Coinbase, Kraken, eToro, Binance (Binance UK might have limited features due to FCA restrictions, so be aware).
   • Considerations: Look for exchanges with a good reputation, competitive fees, a user-friendly interface, and strong security.
2. Register and Verify Your Account (KYC):
   • All legitimate UK-based crypto exchanges require you to complete a KYC process to comply with anti-money laundering regulations. This usually involves:
     • Providing personal details (name, address, date of birth).
     • Uploading a photo ID (passport, driving license).
     • Sometimes, proof of address (utility bill, bank statement).
   • This process can take minutes to a few hours, or even a day, depending on the exchange.
3. Deposit GBP into Your Exchange Account:
   • Most UK exchanges accept deposits via bank transfer (Faster Payments are usually free or low-cost), debit card (often higher fees), or sometimes PayPal.
   • Important Note: Some UK banks and credit card providers have restrictions or even outright bans on transactions to crypto exchanges, so check with your bank first.
4. Buy Bitcoin:
   • Once your GBP deposit is confirmed, navigate to the “Buy” or “Trade” section of the exchange.
   • Select Bitcoin (BTC) and the amount of GBP you wish to spend.
   • Review the exchange rate and fees, then confirm your purchase.

 

Step 2: Set Up a Crypto Wallet (Optional, but Recommended for Security)

 

While you can often send Bitcoin directly from your exchange to a betting site, using a separate crypto wallet provides an extra layer of security and control.

• Hot Wallets (Software Wallets):
  • Desktop Wallets: Installed on your computer (e.g., Exodus, Electrum).
  • Mobile Wallets: Apps for your smartphone (e.g., Trust Wallet, MetaMask for Ethereum-based tokens, but supports BTC).
  • Web Wallets: Accessed via a browser (e.g., Coinbase Wallet, although some consider exchange-hosted wallets less secure than dedicated self-custody wallets).
  • Advantages: Convenient for quick transactions.
  • Disadvantages: Connected to the internet, potentially more vulnerable to hacks.
• Cold Wallets (Hardware Wallets):
  • Physical devices that store your crypto offline (e.g., Ledger, Trezor).
  • Advantages: Most secure for storing larger amounts of crypto.
  • Disadvantages: Less convenient for frequent, small transactions.

How to Transfer Bitcoin to Your Wallet: From your exchange, initiate a “Withdraw” or “Send” transaction. Paste your wallet’s public Bitcoin address (always double-check this!) and confirm the transfer.

 

Step 3: Choose a Reputable Offshore Crypto Betting Site

 

Since UKGC-licensed sites cannot accept crypto, you’ll need to select an offshore platform.

1. Research and Read Reviews: Look for sites known for:
   • Reputation: Long-standing in the crypto gambling community, positive player feedback.
   • Licensing: While offshore, a license from Curaçao eGaming or Anjouan Gaming Authority provides a baseline level of regulation.
   • Game Variety: Slots, table games, live casino, sports betting, provably fair games.
   • Accepted Cryptos: Ensure they accept Bitcoin and your other preferred cryptos.
   • Fast Payouts: One of the main draws of crypto betting.
   • Bonuses & Promotions: Generous welcome offers and ongoing loyalty programs.
   • Customer Support: Reliable and responsive support.
2. Popular Crypto Betting Sites for UK Players:
   • Lucky Block
   • Betpanda.io
   • BC.Game
   • Vave
   • TG.Casino (Telegram-based)
   • Cryptorino
   • WSM Casino
   • Mega Dice

 

Step 4: Register and Deposit Bitcoin

 

1. Quick Registration: Most crypto betting sites have a very fast registration process, often requiring only an email and password. Full KYC is typically not required for crypto deposits or initial withdrawals, preserving privacy.
2. Navigate to the Deposit Section:
   • Select Bitcoin as your deposit method.
   • The site will provide you with a unique Bitcoin deposit address (a long string of characters and numbers).
3. Send Bitcoin from Your Wallet/Exchange:
   • Open your crypto wallet or exchange.
   • Initiate a “Send” or “Withdraw” transaction.
   • Carefully copy and paste the exact Bitcoin deposit address provided by the betting site. Even a single incorrect character can result in lost funds.
   • Enter the amount of Bitcoin you wish to deposit.
   • Confirm the transaction.
4. Wait for Confirmations:
   • Bitcoin transactions require several “confirmations” on the blockchain before they are deemed secure and reflected in your betting account. This usually takes 10-30 minutes, depending on network congestion.

 

Step 5: Start Betting!

Once your Bitcoin deposit is confirmed, the funds will appear in your betting account, and you can start playing your favorite casino games or placing sports bets.

Important Considerations for UK Players

• Responsible Gambling: Even with offshore sites, practice responsible gambling. Set limits on deposits, losses, and time spent. If a site has self-exclusion tools, utilize them if needed. Remember that UKGC self-exclusion schemes like GamStop do not apply to offshore sites.
• Tax Implications: In the UK, gambling winnings are generally not taxable. However, if you hold Bitcoin and its value increases after winning (i.e., you experience a capital gain between winning and selling/withdrawing), you might be liable for Capital Gains Tax on that profit, exceeding the annual allowance (currently £3,000 as of October 30, 2024). Keep meticulous records of all your crypto transactions for tax purposes. Consulting a tax advisor is highly recommended.
• Volatility: Bitcoin’s price can be volatile. The value of your winnings could fluctuate between the time you win and when you decide to cash out.
• Customer Support: Ensure the chosen offshore site has reliable customer support in case of any issues, as UK regulatory bodies cannot intervene in disputes with these platforms.

By following these steps and being mindful of the unique aspects of crypto gambling in the UK, you can safely and effectively start betting with Bitcoin.