Crypto Gambling Regulation in 2025: What Bettors Need to Know
There's been a genuine boom recently in crypto betting with uptake increasing all around the world. A potential consequence of that however, could be an increase in crypto gambling regulation .
In many ways, it's to be expected as regulators look to play catch-up on an industry which lacks consistency when it comes to compliance from the crypto sportsbooks themselves.
Players have seen sportsbooks push the envelope with innovation, so it's now likely that there will be more rules. This could also result in more scrutiny and pressure on the sportsbooks to balance that innovation with control and compliance.
Let's take a look at the current state of play and the likely future direction of the regulation of offshore crypto sportsbooks.
Key Takeaways:
- Crypto gambling regulation is accelerating as global jurisdictions respond to the rise of anonymous betting and offshore sportsbooks.
- Offshore sportsbooks are adapting with "light KYC" measures, dual licensing (e.g., Curacao and Malta), and stablecoin-only transactions to stay compliant.
- KYC enforcement is likely to increase, affecting user privacy and requiring more personal identification for deposits and withdrawals.
- Stablecoins like USDT and USDC are favored over volatile cryptocurrencies like BTC, signaling potential licensing restrictions on crypto types.
- DAO casinos and decentralized gambling platforms are facing scrutiny due to lack of centralized control and absence of KYC policies.
- Governments may demand wallet tracking and tax reporting, forcing players to report crypto gambling winnings more transparently.
- The U.S. crypto gambling market remains a gray area, but many Americans still use offshore sites due to limited domestic options.
- Future regulation may enhance legitimacy and safety for players on vetted offshore platforms, though anonymous gambling will likely decline.
Best Offshore Crypto Sportsbooks For U.S. Bettors in 2025
| Rank | Sportsbook | Top Bonus Offer | Rating | Claim |
|---|---|---|---|---|
1 |
 Est. 1994 |
50% Bonus up to $1000 |
VISIT SITE | |
2 |
 Est. 2021 |
125% Bonus up to $1250 |
VISIT SITE | |
3 |
 Est. 2001 |
50% Bonus up to $250 |
VISIT SITE | |
4 |
 Est. 2014 |
$100 in Free Bets |
VISIT SITE | |
5 |
 Est. 2024 |
Various Cashback and Odds Boosters |
VISIT SITE |
|
Sportsbook |
Ranked No. 1 Est. 1994 |
Top Bonus Offer
50% Bonus up to $1000 |
|
Sportsbook |
Ranked No. 2 Est. 2021 |
Top Bonus Offer
125% Bonus up to $1250 |
|
Sportsbook |
Ranked No. 3 Est. 2001 |
Top Bonus Offer
50% Bonus up to $250 |
|
Sportsbook |
Ranked No. 4 Est. 2014 |
Top Bonus Offer
$100 in Free Bets |
|
Sportsbook |
Ranked No. 5 Est. 2024 |
Top Bonus Offer
Various Cashback and Odds Boosters |
The Current State of Crypto Gambling Regulation
Crypto gambling is mostly unregulated in many jurisdictions: There are currently countries and states where there is simply no regulation. For instance, the current US crypto gambling laws operate in a legal grey area where it's not illegal. There are no regulations in place.
- Offshore sportsbooks operate under licenses like Curacao, Panama, Antigua: As the majority of crypto sportsbooks have gaming licenses from these countries, they are expected to adhere to their local laws and operate out of the reach of US authorities for example.
- Some regions are starting to draft specific crypto gambling laws (e.g., EU, LatAm): In the EU for example, it's expected that specific KYC requirements are likely to be implemented. Due to the lack of action, it's unclear at this stage how offshore sportsbooks adapt to regulation. This will give us a major indication of how big any changes could be.
- U.S. players use offshore sites due to limited domestic access: For many players in the US and further afield, they use offshore crypto sportsbooks because they simply don't have any other choice. If crypto gambling regulation were introduced in conjunction with legalising betting in every state, then it's likely the offshore sportsbooks would see a significant drop in usage
- No global regulatory framework yet, but momentum is building: Due to the nature of crypto betting, introducing legislation will be a global response. Currently, this isn't close to realization, but momentum is growing in the direction of introducing decentralized gambling laws.
Key Trends Shaping Regulation in 2025
Push for Transparency and KYC
KYC refers to "know your customer". It requires banks and financial institutions to collect ID from every customer as part of anti-money laundering and fraud measures. Without KYC policies, it's possible to play anonymously if you use cryptocurrency. Unfortunately, regulators are likely to push for ID just to deposit, never mind processing payouts.
This will push sportsbooks to be more vigilant when it comes to monitoring potential money laundering. It will infringe on the user experience, so it's possible that any site that does offer no-KYC play may become less accessible.
Rise of Stablecoin-Only Licensing
There's a growing sense that some regulators have a preference for stablecoins like USDT/USDC over other coins like Bitcoin (BTC) due to their volatility concerns. This can make it harder to track funds when the value could frequently fluctuate. Therefore, it's possible that the future of crypto gambling sees new licenses restricted to stablecoins.
Decentralized Gambling and DAO Casinos
Decentralized Autonomous Organization (DAO) casinos and decentralized gambling pose a real concern to regulators. This is largely because they operate without KYC requirements and don't have a single operator. DAO Casinos, in particular, are community-run by players who hold a native coin to the casino. This makes it especially difficult to regulate and control.
As a result, their only solution may be to ban them or have them redlisted by major ISPs. This would ultimately make them difficult to access for many ordinary players. We could also see a situation where offshore operators may be required to block access to DApps. This would depend on how heavily they push to alter decentralized gambling laws.
Tax Reporting and Wallet Tracing
At the moment, offshore sportsbooks do not report to government organisations about tax or winnings. However, it seems obvious that this would be one key piece of crypto gambling regulation that tax agencies would want to be passed as soon as possible.
This isn't easy to do with cryptocurrency either, so it's likely that governments will increasingly demand wallet tracking. This would leave the sportsbooks needing to provide wallet-level transaction data as well.
Ultimately, this means that the future of crypto gambling could see players forced into tax reporting on their crypto winnings.
How Offshore Sportsbooks Are Adapting
What we're now seeing in how offshore sportsbooks adapt to regulation is an attempt to appease any potential concerns on favorable terms, as opposed to ignoring them, which could result in more stringent measures.
The first step has been to introduce "light KYC" or tiered verification measures. This means if players are relatively small-time, then they can go under the radar, but high-rollers will face checks.
As previously mentioned, stablecoins are easier for regulators to track. Some sportsbooks now only offer stablecoin withdrawal options, while others are updating their privacy policies and geoblocking certain locations to reduce exposure.
We've also seen certain sportsbooks that are seeking to obtain a dual gambling license for crypto sites. For instance, from Curacao and Malta, to try and future-proof their operations.
What This Means for Crypto Bettors in 2025
Ultimately, the likely changes to decentralized gambling laws mean that fully autonomous betting sites will become more scarce, especially if they are blocked by certain ISPs.
We've also seen major changes in things like KYC requirements for crypto casinos. The sportsbooks are now catching up. You can expect to be required to present your ID when making withdrawals over a certain threshold.
There will be upsides for bettors. Regulation should lead to increased reliability and legitimacy for vetted sites, allowing you to feel more secure in your play. For US players, it could also mean they may still have to rely on offshore books, but there will be tighter controls due to changes in US crypto gambling laws.
FAQs – Crypto Gambling Laws & Regulation
Yes, it is legal to gamble with Bitcoin in the United States in 2025. But you will need to go through an offshore crypto sportsbook to do so.
Yes they can try by redlisting through ISPs and legal enforcement. However, this is hard to do, and users can still find ways to access the sportsbooks through VPNs, for example
Yes, they are; however, the complex decentralized gambling laws mean they operate in a legal gray area, so it's best to check that your local laws don't prohibit play.
Offshore crypto sportsbooks don't report to tax authorities. Despite this, you are required to pay tax on your gambling winnings in the United States
For now, it appears that they are. Regulators are working to introduce crypto gambling compliance standards for stablecoin users to offer more user protections.
Final Thoughts – The Regulatory Wave Is Coming
As the industry continues to mature and crypto becomes more popular, it was only natural that crypto gambling regulation would start to catch up. Ultimately, this should lead to increased security for players. We're confident that when we see how offshore sportsbooks adapt to regulation, it will be an evolution rather than a revolution, so they are here to stay.
Likely, players who want to see more transparency and enjoy more safety will welcome the increased regulation of offshore crypto sportsbooks. On the other hand, those who enjoy privacy or want anonymous betting will feel disappointed.
For now, it's still vital that you stay with licensed sportsbooks that we've reviewed and verified, as these are adapting the right way towards the future.
