Ethereum gambling at online casinos
Gambling with Ethereum is growing all the time with this bitcoin alternative one of the more popular crytpocurrencies in use in 2019. Many online casinos accept Ethereum deposits, although it will largely depend on where you are located if you can use this gambling deposit method.
The Ethereum blockchain has also spawned a new type of online casino, that is based on smart contract betting, and pays out players instantly with the gambling site never holding your money.
For the absolutely uninitiated, Ethereum allows you to transfer money between yourself and an online casino, or online merchant if you’re talking about non-gambling pursuits, instantly and with low transactions fees.
There are several different types of Ethereum online casino, with these being those that only accept Ethereum and display your balance in this cryptocurrency, and also casinos that have Ethereum as a deposit option, when if used your balance will be converted into your currency. And of course, smart contract betting, on the Ethereum blockchain, which has the team at the WGL intrigued.
Our top Ethereum online casinos for 2019 are:
How do Ethereum online casinos work?
Like we previously explained, Ethereum can be a deposit and withdrawal method at online casinos, or it can also be, in our words, the brains of the online casino using the Ethereum blockchain and something called smart contract betting. The advent of cryptocurrencies at online casinos has been a blessing for players and a curse for authorities, who are struggling to keep a handle on illegal gambling and taxing them.
Using Ethereum as a casino deposit and withdrawal method
The most common way that you will see Ether used at online casinos is as a deposit method, meaning you can can fund your account using this cryptocurrency, with your balance being converted into your regular or a popular currency (like USD, EUR or GBP).
Ethereum crypto is a great way to fund your online casino account, because there are no fees, instant transaction and it’s largely anonymous, although as a general rule you will have to give over your details to an online casino anyway to verify your account, meaning the anonymity is kind of a moot point.
You can also withdraw from some online casinos using Ethereum, although this can be less common that deposits. The withdrawal time is also longer than a deposit, with many casinos taking up to five days to process Ether withdrawals.
Ethereum smart contract betting
The Ethereum blockchain, using something called smart contract betting, is an emerging way to play at casino sites. There are a number of online casinos that only accept Ethereum deposits and operate solely on the block chain — much like the proof of work bitcoin dice games.
Unlike just using Ethereum as a deposit option, when you send it to a wallet held by the casino, you instead send your Ether to a smart contract. The smart contract ensures randomness and pays out based on whether the players wins or loses.
Smart contract betting Ethereum is all instant, meaning every time you place a bet in roulette, or play a hand of blackjack money will leave you bet account, corresponding with the bet you have placed. It will then be held by the contract on the Ether blockchain until the result is decided. You are then paid instantly by the contract — no croupier or person involved.
Some of the benefits of playing at a smart contract online casino include the fact that the casino never holds your funds, your payouts are made instantly as soon as their is a result and cannot be interfered with because it is all handled by the contract. The best part about this form of Ethereum gambling is that you get your money instantly.
Is Ethereum gambling legal?
The laws surrounding online Ethereum gambling will depend on where you are in the world, for instance in the United Kingdom there is a fully regulated online casino industry, and they are not allowed to accept Ethereum deposits, even though Ether is not illegal in Britain.
Basically it is possible to play at online casinos, including ones based on the Ethereum blockchain and using smart contract betting, even if you are in a country that does not allow it. Ethereum gambling, like bitcoin gambling, is extremely hard to stamp out completely because of the freedoms that the blockchain bring about.
Unless you are in a country with exceptionally tough laws surrounding Ethereum gambling sites, it is very unlikely you (a player) will get in trouble for playing at an Ethereum casino. The global trend in gambling law enforcement is to target the operator, not the player.