More and more betting sites are accepting crypto as a payment method, even though there are multiple associated risks and many countries have blocked these transactions.
Can new gambling regulators like the GRAI in Ireland combat this before it becomes a cumbersome issue? Research from online betting website Topbetting.ie has shown that there are risks associated with the use of crypto payments but the unrivaled speed is attracting many.
Risks Associated With Crypto Payments In Betting
We hear many sources mentioning the risks of using crypto, but not many in-depth, understandable explanations. Punters may opt to pay with crypto because the deposits are often instant and have much lower fees than other payment types, but the disadvantages have much more serious repercussions.
The main problem with crypto payments is that they are considered to be irreversible which leads to problems with security. You cannot dispute these transactions which means that if your identity is stolen or a mistake has been made, there is no way to reverse it. This leads to the next issue which is anonymity; although this may sound beneficial it also can contribute to crime. Generally, you only need to input your wallet address and how much you need to deposit or withdraw. On the other hand, when you pay with a debit card for example, it is necessary to add information like full name, card number, expiry date, and more. There is hardly ever verification using crypto.
Another risk is fluctuation, because crypto payments are volatile. As the value is constantly changing this could be detrimental to betting because you can never fully predict the amount you will be cashing out. When it comes to bigger payments this can be quite frustrating and when you compare it to other methods like debit cards (Visa, Mastercard, Maestro) that promise you a set value, it can seem quite unattractive to use crypto.
Some punters wishing to use crypto that can’t find it on a licensed site may start searching for an unregulated bookmaker that isn’t approved by the Irish gambling authorities like the GRAI. These are even more unsafe and may steal your data as well as withhold your payouts. You also cannot contact customer services as these sites don’t have valid licenses and hence there is no guarantee that there is a team to contact in the first place.
From a safer gambling perspective, it is best to use e-wallets. This is because you can dedicate the e-wallet wholly to gambling, such as PayPal or Skrill. The digital payment platforms make it easier to track your spending habits because they are separate from your everyday account, and if dangerous activity arises it is much easier to spot. When choosing to use crypto, it is more difficult to see how much you are depositing into your betting site account and so harmful spending habits can fly under the radar for longer.
New Gambling Regulators In Ireland
From March 2025 the Gambling Regulatory Authority of Ireland (GRAI) is responsible for regulating betting in Ireland. Not only will they assess new applications, but they will also monitor existing bookmakers in physical locations and online. If there are any issues you can contact the authorities, as they will be assigned to the role of ensuring safety in gambling and evaluating the licenses of bookmakers. How does this relate to crypto?
The new gambling regulators have the authority to ban crypto payments entirely, but at the moment there aren’t many laws that control the use of this currency. Depending on the betting site there are also no taxes applied for using crypto unless they exceed the threshold for a maximum withdrawal. Overall the rules surrounding this payment method are not very clear.
A huge concern is that if crypto is regulated or banned on mainstream betting sites in Ireland, punters will turn to unlicensed companies. An example we can use from the past is when the UK Gambling Commission (UKGC) banned credit cards for gambling because a study found that over 20% of the users were considered to be gambling irresponsibly and unsafely. Therefore the next step seemed to be completely prohibiting the use of credit cards as a deposit or withdrawal method on betting sites in the UK. Even though there is no such data for crypto payments, it is too soon to tell what the consequences of allowing this to continue will be.
While there may not be grounds for a crypto ban, it is encouraged that the payment method should be taxed and the fees are over 2%. Enforcing this rule could be helpful as authorities can monitor crypto from then on and, in time, decide whether to entirely put a stop to it.
Countries That Have Combatted Crypto Payments
The UKGC has decided to heavily restrict crypto payments due to a variety of reasons, the main one being an increased risk of money laundering as the payments can be intercepted. Also as we mentioned above, the anonymity aspects make it easier for people to conceal their identity and hence there is lots of concern with allowing this to be a major payment method. Betting sites that accept crypto must have permission from the UKGC. Maybe in the coming years, the regulatory body will decide to ban crypto altogether, just like they did with credit cards.
Other countries that have imposed bans include Turkey. Countries like India have huge taxes on using the currency which don’t prohibit punters but do deter them because of the high percentage taxed.
Conclusion
We can deduce that using crypto comes with both advantages and disadvantages, but keeping yourself and your data safe is most important. Crypto can be considered too new to understand entirely, and there are many links to fraud and money laundering. Whether the new gambling regulators in Ireland decide to restrict this payment method in betting or not, it is up to the individual to decide which payment platform to use. Debit cards are the traditional payment method and e-wallets are encouraged because of the fast processing times and low fees.
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