Regular online casinos require that players provide many private details when opening an account or making payments. The worse is when the casino like FortuneJack requests that you send a scanned copy of your identity card or passport to receive payouts. Although some players may be okay with that, some don’t wish to expose their private information.
Therefore, such players may shy away from opening an account at the casino. Fortunately, there are online casinos that allow players to stake without revealing their identities. The anonymous casinos let the punters open an account, deposit, stake, and cash out their winnings without providing any private information.
Anonymity of Bitcoin casinos
Cryptocurrencies are behind the aspect of anonymity in online casinos. While regular payment options require you and your private data, digital currencies such as Bitcoin work anonymously. Therefore, it is through cryptocurrencies that we have anonymous online casinos.
Other than the methods of payment, the betting platforms function similarly to typical casinos. The principle is the same where you cash in, stake with your funds, and cash out your winnings.
The distinguishing characteristic is that you don’t have to provide personal details except for your email address to open an account. Bitcoin casinos are thus the way to go for players who wish to protect their identity.
Differences between regular and anonymous online casinos
There are limitations on the anonymous casinos. They cannot get a license from recognized licensing authorities. To guarantee safety, players should go for casinos that monitor reputable regulation bodies such as those in the United Kingdom and Malta.
Take, for instance, a case where the casinos decline a withdrawal request from a player. They could accuse the players of going against terms and conditions. But the punter may not agree with that, which means a dispute between the players and the casino. The licensing authority can play a crucial role in such a situation. It solves the dispute without bias and in a fair manner. However, Bitcoin casinos are anonymous, and such an option may not be available.
Safety in anonymous casinos
Anonymous casinos run without a license and whether they are safe to play depends on many factors. Some have fair treatment to their players, while others have an inconvenient withdrawal process. But as a result of reviews from customers, the latter won’t last for long. Therefore, there are several reputable and safe Bitcoin casinos.
The anonymous casino niche is not very well established as it is relatively new. The concept itself raises a lot of critical issues. While many problems face the casinos, including licensing and contracts with developers, some casinos treat their customers honestly and fairly.
Game selection
Anonymous casinos may fail to overwhelm players in their game selection room. The fact that the casinos run anonymously makes it difficult to include games from leading software providers officially.
But the casinos have found their way to alleviate the limitation partially. However, their game selection cannot match other international betting platforms. But you should still find great slots, blackjack, roulette, and other popular games.
Are gambling winnings tax-free?
Every player has to be keen on whether his or her winnings at a casino are subject to any taxes. There may not be a straight answer on whether winnings on gambling are tax-free or not. It all depends on the country.
In Wales, Scotland, Northern Ireland, and England, winnings are tax-free. That is for both gambling with fiat currencies and Bitcoin. In the United States, the winnings are subject to taxes. Interestingly, there are restrictions on online gambling, but the government still goes for taxes on winnings from the same.
Some other countries where gambling is tax-free include Canada, Austria, Belgium, Finland, Hungary, Bulgaria, Czech Republic, Germany, Denmark, Italy, Malta, Sweden, and Romania. In the above-metioned countries, your winnings are tax-free regardless of how big they could be. That is the reason why gambling platforms are famous in countries.
Most of the countries where winnings are taxable apply a similar principle as for regular income. Take the United States as an example. Taxpayers in the country pay a proportion of their income in a year as income tax. The state considers winnings from gambling as regular income as the earnings are payments from an activity that one directly participates in. it is different from money on stock market earnings, which the government tax as capital gains.
The United States do not consider Bitcoin as a legal tender but as an asset. Therefore, incomes from the cryptocurrencies that come from price fluctuations are subject to taxation as capital gains. However, if you use the digital currency to stake on slots, the government taxes the amount you win as income. This contradiction is not only in the United States but in other countries too. There is a lot of taxation and regulation inconsistency when you bring gambling and digital currencies together.
How players gamble tax-free with Bitcoins
Gamblers always look for workarounds. They buy Bitcoins, deposit, and stake. In case they win, they cash out the Bitcoins. The aspect of decentralization keeps off government institutions and central banks from controlling the currency.
Therefore, it is possible to transact without the interference of the government. Even high rollers can bet with large amounts of Bitcoin but keep the winnings anonymous such that no entity can know about it. That way, players evades taxation.
Another workaround is where punters pay taxes at a lower rate. It is a successful tactic in countries that differentiates between capital gains and regular income. After winning a substantial amount, the gamblers cash out the Bitcoins. They combine to those already available in the wallet.
The amount in the BTC is greater than what was there before. Instead of reporting the winnings, the gamblers report a profit in their Bitcoin reserves. Therefore, they won’t pay income tax but capital gain whose rate is lower.
Final Thoughts
You will be correct to consider Bitcoin casinos as anonymous. It is possible to carry out your activities in anonymity. However, when it comes to taxes, it all depends on the jurisdictions.