Cryptocurrencies like Bitcoin have been around since 2009, so they aren’t new at this point. But using crypto to place bets in online casinos? That’s a much newer trend that’s exploded in popularity in recent years. These days, it feels like a new crypto gambling website pops up almost every month, offering digital currencies as a payment option to attract the growing number of crypto users and fanatics.
Using crypto makes it easier to move money across borders and stay anonymous, but again, this decentralized nature raises serious concerns about shady activities like money laundering and terrorist financing. And gambling websites are one of the most targeted places used by criminals to launder their money.
In one of our previous articles, we explained how criminals use crypto to launder money. However, in today’s article, we will look at how the UK Gambling Commission (UKGC), one of the strictest gambling regulators in the world, regulates this issue to keep licensed crypto casinos in check and protect consumers.
We will break down how the UKGC enforces AML compliance on crypto gambling platforms, the guidelines operators have to follow, examples of what happens when they don’t, and where players can find safe, UKGC-compliant crypto casinos they can actually trust.
What Are Crypto Gambling Websites?
Crypto gambling websites are online casinos and betting websites that accept cryptocurrencies, like Bitcoin and Ethereum, as the primary or exclusive payment method for deposits, wagering, and withdrawals. This distinguishes them from regular online casinos, which normally accept fiat currencies through credit cards, bank transfers, and e-wallets as the only payment methods. Crypto gambling websites accept cryptocurrencies, which can be transferred directly from a player’s digital wallet without involving middlemen.
The currency used to facilitate transactions is not the only thing that differentiates a regular online casino from a crypto gambling website. Like every website in the Web3 industry, crypto gambling websites make use of blockchain technology and smart contracts to facilitate transactions. This, in turn, makes transactions faster and cheaper when compared to the process in regular casinos. It also provides a certain level of anonymity/ privacy to the players; they get to gamble without revealing extensive personal information. However, this same anonymity fuels concerns about their potential misuse for illicit activities like money laundering. We shall address this topic later in the article.
Using Crypto for Gambling in the UK
In the UK, using cryptocurrencies on gambling websites is strictly regulated by the UKGC. Not all of the websites that accept cryptocurrencies are open to UK residents because of licensing and regulatory issues. This is mainly because the UKGC doesn’t allow online casinos that use cryptocurrencies as the exclusive payment method, but rather it allows those that provide less-direct crypto options, alongside fiat currencies.
Popular crypto-only casinos, like BitStarz, Stake, and BC.Game have a lot of global attention, but they often operate under licenses from jurisdictions like Curacao or Malta.
For UK users to access them, they need to use a VPN service with an IP address attached to a country that accepts these casinos. UK players who want to gamble with cryptocurrencies often use a mix of offshore licensed websites and UKGC-regulated websites that accept crypto payments.
Examples of popular UKGC-regulated crypto gambling websites available for UK residents include:
888Casino: 888Casino is among the most established and trustworthy online gambling companies. It offers hundreds of games and special live dealer tables. While 888casino does not directly accept cryptocurrencies, it recently began to accept cryptocurrencies in a controlled manner through third-party services. It allows players to use e-wallets like Neteller or Skrill, which support crypto-to-fiat conversion externally. For example, a player could deposit Bitcoin into a Neteller account, convert it to GBP, and then deposit it into 888casino.
Betway: Betway is a trusted global brand with a strong reputation among UK players. It’s licensed by the UKGC and the Malta Gaming Authority (MGA), and known for having a wide range of games, including slots, table games, and sports betting. And similar to 888casino, Betway accepts fiat (Visa, MasterCard, PayPal, Neteller, bank transfers) and supports cryptocurrency payments (e.g., Bitcoin, Ethereum) through third-party processors like Neteller, which converts crypto to fiat for compliance with UKGC rules.
Ladbrokes Casino: Ladbrokes Casino is a legacy brand with a strong UK presence. It’s licensed by the UKGC and MGA and supports fiat and allows crypto payments through third-party processors like Neteller that convert to GBP.
Casumo: Casumo is a well-known traditional online casino that has incorporated cryptocurrency payments through outside vendors. It provides a wide range of sports betting and casino games, fusing innovation with strict adherence to regulations. Similar to the other platforms, Casumo offers UK players a safer way to gamble with cryptocurrency while adhering to the UKGC’s strict regulations.
These websites offer excellent crypto-gambling services. But as usual, players are advised to check the licensing status, AML compliance, and player protection features of any platform they are interested in using.
Potential Risks of Crypto Gambling Websites: Do They Facilitate Money Laundering?
The anonymity factor of cryptocurrency attracts many players to crypto casinos. Because, unlike traditional banking methods, cryptocurrency transactions often require minimal personal information, making them attractive to users seeking privacy. Criminals have also discovered that with the use of anonymous identities associated with cryptocurrency and the gambling process, they can carry out money laundering with almost no detection. They can disguise illegal funds as legitimate winnings through these three simple steps:
Deposit: They put illegally obtained funds into a gambling account using cryptocurrency.
Bet: They go on to place bets. Sometimes, they intentionally lose a little to stimulate genuine gambling activity.
Withdrawal: What’s left is then withdrawn as their winnings, making the money clean and concluding the process.
Just by doing this, they can clean up their dirty money and enter it into the legitimate banking system. Several regulatory boards and operators take steps to ensure this activity is stopped, but the fact is, the online casino business is still attractive to money launderers – it’s the operators’ duty to stop it.
But, What Makes Crypto Gambling So Attractive to Money Launderers?
That is a question that has been asked over and over again. Crypto gambling is attractive to money launderers due to the following features:
Decentralization: Crypto gambling websites operate on decentralized blockchains without central authorities. This means that assets cannot be frozen as easily as when stored with central authorities.
Speed and global reach: Unlike the traditional banking system, cryptocurrency transactions can be completed within minutes across borders. This ensures swift movement of funds without delays or scrutiny. Moving that amount of funds through the traditional banking systems will get you flagged.
Anonymity: Cryptocurrency transactions protect the identity of the wallet holder. This gives them the privacy they need to stay under the radar.
The money-in and money-out nature of gambling websites: Gambling websites operate on a model where users can deposit money, play, and then withdraw it. This model provides a foundation that is attractive enough for criminals to launder dirty money. Even with necessary steps taken by operators, such as setting deposit limits and stricter withdrawal conditions, criminals still try to find a workaround.
So generally, this practice can be reduced, but controlling it 100% requires a collaborative approach from both the operators and the regulating boards. Some operators don’t mind as long as they are also generating profits, and this is why licensing and regulatory boards take this issue more seriously, especially with the current inclusion of cryptocurrency use in online casinos.
What Is The UKGC’s Official Stance On Crypto Gambling Websites?
The UKGC acknowledges the growing interest in using cryptocurrencies in gambling; however, it also classifies cryptocurrency as a high-risk payment method, with high potential for attracting money laundering cases. The licensing board does not reject the concept of using crypto in online gambling, but it has set rules that; for a licensed operator to directly use crypto as a payment method, they have to to pass through strict KYB, AML, and KYC checks, to ensure that they maintain transparent, fair, and socially responsible gambling services.
At the same time, operators are expected to perform Customer Due Diligence to assess the risk profiles of their players and regularly submit that information to the licensing board. If a player makes a crypto transaction that’s over £2,000, the operator has to take a closer look and figure out exactly where that money came from and record that information.
The current UKGC guidelines also state that direct crypto deposits and withdrawals are not permitted. This is because they often hinder the source-of-funds verifications, which are used to trace money laundering patterns.
For these reasons, most operators, even those who have been working in the UK for a long time, have avoided using crypto as a direct payment method, but give users the option to use third-party payment service providers like Skrill and Neteller, where they can convert their crypto to fiat and then deposit of the gambling platforms.
The UKGC also approves this approach, but still advises operators to assess the third-party payment service providers they use for this purpose and submit a report to the licensing board on how the assessment was made.
So with this, we can clearly see why there is no licensed operator in the UK who accepts crypto directly, without this intermediary step.
Why does the UKGC set strict rules for crypto gambling websites?
The UKGC wants to make sure that even the most decentralised platforms still follow centralised rules. It’s their way of letting crypto gambling grow while keeping it safe, transparent, and way less shady. As we know, crypto gambling websites are an easy target for money laundering. The biggest concern yet is that criminals have found a way to bypass KYC checks, especially with the use of AI-generated/ deepfake documents. The UKGC released a bulletin in April 2025 to warn operators about these risks.
Criminals are turning crypto gambling websites into decentralized exchanges to swap, for example, BTC to privacy coins, which cover their tracks when withdrawn. They place just a few small bets and then withdraw the winnings as if the money were clean. This all makes it much easier to clean up and move crypto. To crack down on this, the UKGC urges operators to strengthen their internal systems and use closed-loop payment setups that make crypto transactions easier to follow.
The UKGC’s framework for preventing money laundering in crypto gambling websites
The UK Gambling Commission has a framework in place to fight financial crime in cryptocurrency gambling websites, and all operators are required to abide by this framework. It is based on three responsibilities: recognizing the dangers, knowing who is playing, and keeping a watch on what is going on behind the scenes.
Here’s what licensed operators are expected to do:
Conduct risk assessments for each third-party payment service provider they integrate
Perform Customer Due Diligence (CDD) and regularly submit the information to the board
Monitor and report suspicious activity
In addition to fighting financial fraud, the UKGC expects operators to be on the lookout for vulnerable players. Running a safe and responsible platform is just as important as remaining compliant. If they notice anything fishy, they are obliged to report it to the UK’s Financial Intelligence Unit.
So, Are Crypto-Only Casinos Issued Licenses By The UKGC?
At the moment, there is no crypto-only casino that has been licensed by the UKGC. The UKGC considered these platforms as high risk as they make it difficult to track players’ source of funds, due to the anonymous nature of crypto. However, they do not outrightly ban operators from using cryptocurrencies in their services. They mandate operators to moderate crypto payments and integrate them under the compliance framework, which involves strict KYB, KYC, and AML checks, as well as conducting and submitting reports on CDD and their third-party payment service providers.
These requirements are challenging for crypto-only platforms because they take away the anonymity factor, which is a key interest for crypto users.
However, the UKGC states that any operator that complies with these regulations can get a license. But again, because of this, no operator has dared to go in that direction so far, due to the complex regulatory hurdles both at registration and during operation.
Restrictions for UK Players And Operator Obligation
The UKGC does not stop at trying to prevent money laundering; it also tries to protect the citizens of the UK. In an effort to do so, they put in some restrictions to regulate gambling for UK citizens. Some of these restrictions are:
Geo-blocking: The UKGC uses geo-blocking to stop unlicensed crypto casinos from exploiting UK customers. It is used to limit the access people living in the UK have to websites that don’t have a license.
Vulnerability protections: The UKGC has made affordability checks and vulnerability protections stricter. In other words, the players’ financial situation would be taken into account. This is done to keep the players from losing all their money to gambling. Operators are advised to set a daily limit on each account where the users seem vulnerable.
Compliance audits: Licensed operators will be audited on a regular basis and must show that they are always following AML and responsible gambling rules, including those that apply to the use of cryptocurrencies. If you don’t follow the rules, you will be punished.
But, How Effective Are the Regulations?
The UKGC regulatory framework to regulate crypto gambling websites is very effective. However, like every other regulatory framework, the UKGC framework has its shortcomings and weak points. These weak points have been exploited in various ways and brought about challenges.
Some of these challenges include:
Licensing evasions by offshore platforms: Some crypto gambling operators attempt to circumvent UKGC oversight by operating from offshore jurisdictions without a UK license. These unregulated platforms often exploit the anonymity and borderless nature of cryptocurrencies to target UK players illegally, making enforcement difficult. Geo-blocking and ISP-level restrictions are used, but are not foolproof because of VPNs, allowing some players to access unlicensed websites.
Technological complexity and rapid innovation: Cryptocurrencies and blockchain technologies evolve quickly, and criminals evolve with them. This innovation can rapidly outrun regulatory and operator monitoring capabilities, which will then create gaps in detection.
Insufficient risk-based approaches: Operators sometimes rely heavily on financial thresholds rather than comprehensive behavior-based risk assessments. This can result in missed suspicious activities, especially in crypto gambling, where transaction patterns differ from fiat gambling.
Limited transparency in crypto transactions in third-party payment services: Crypto transactions hide the identity of the user. This makes it hard to track the funds of the user, even if they have deposited through a third-party payment provider. Once a criminal bypasses the KYC on the payment provider, they will be able to send their crypto to a gambling platform easily.
To fix these problems, the UKGC requires strict customer due diligence, which includes asking the users, especially the high rollers, for the source of their funds. Operators must update their risk assessments every time a new way to pay with cryptocurrency is made available. The UKGC can also fine operators who break AML rules or use dishonest methods, and it can also suspend or revoke their licenses. These enforcement measures keep people from breaking the rules and make sure they follow them. The commission also regularly puts out revised guidelines that point out new threats, and operators are urged to use these new ideas in their monitoring systems.
What happens to the operators who don’t follow these rules? Recent examples of UKGC fines
In a situation where a licensed gambling operator fails to carry out its duty, for instance, by being irresponsible and not following the regulatory framework, the UKGC can consider reviewing its operating license.
This review could result in:
1. License suspensions
2. License revocations
3. Imposing a financial penalty
Here are some operators that faced these actions in previous years:
– Allowed clients to self-report financial information without independent verification of the source of funds. – Failed to conduct due diligence as customer gambling activity intensified. – Performed repetitive basic checks instead of increasing scrutiny. – Poor customer due diligence and weak monitoring of high-risk accounts.
– Delayed customer due diligence (CDD) checks when financial thresholds were reached. – One customer’s CDD review was conducted a week late. – Deficiencies in verifying the source of funds.
AML and social responsibility regulation violations
– Manages 19 white-label gambling websites. – Failed to conduct money laundering and terrorist financing risk assessments. – Neglected risk assessments for fraudulent/stolen IDs and complex/large transactions.
These cases deliver a clear message to the sector. The UKGC is proactive when it comes to resolving Anti-Money Laundering vulnerabilities. Operators who fail to comply with AML rules could easily face fines, license suspensions, or revocations.
The UKGC and International Organizations
One of the goals of the UKGC is to make gambling safe, not just in the UK but across the globe. To do this, the UKGC engages with international regulators and law enforcement agencies. It shares information and collaborates on investigations of cross-border crimes linked to gambling. It also aligns with international standards. For instance, the AML regulations by the UKGC represent the UK’s response to the Financial Action Task Force (FATF) Recommendations and the implementation of the law on gambling in the UK. It sets requirements for the anti-money laundering and counter-terrorist financing regime.
It goes further by collaborating with other EU bodies to address certain issues regarding gambling. Issues like match fixing in sports betting, and money laundering in gambling.
Are There Some Loopholes? What The Experts Are Saying
Eventhough, crypto gambling sites are not operating in the UK, some operators found loopholes to promote their casinos in the UK market to target players. This has raised concerns and opinions from people in the iGaming industry.
In early 2025, Stake, a non-UKGC licensed casino, was found to be advertising its crypto casino in the UK. They found a loophole in the UKGC system and took that as an advantage to indirectly establish their presence among UK players.
The UKGC announced that TGP Europe, the operator behind Stake, was licensed to operate a legal, non-crypto version of their site in the UK under the domain Stake.uk. However, they used this UK website as a proxy to send users to their main crypto website, Stake.com, which is not licensed, through redirection links.
As a result, this had the platform banned in the UK, their license was revoked, and they were asked to terminate their shirt sponsorship deal with Everton Football Club, which they used for marketing.
Duncan Garvie, the founder of BetBlocker, a charity organisation that provides free blocking software to players in need of support to restrict themselves from accessing gambling, had the following to say about the loophole:
“For those that are not aware of what’s been going on:
Crypto gambling operators, licensed in Curacao or other similar jurisdictions, go to a whitelable UKGC license provider and open a UKGC-licensed version of their brand. This then allows them to approach Premier League football teams about potential sponsorships.
‼️ However ‼️ Once the sponsorship is agreed upon, the gambling operator doesn’t promote their UKGC-licensed site. They splash the URL for their Curacao licensed site across the football team’s strip and have the football team promote their Curacao operator on their social media.
The argument for this is that the football club has an international audience, but the teams in question actually have very low levels of play outside of the UK.
This is a loophole that has been legitimising unlicensed brands within the UK consumer consciousness. It’s fantastic to see the GC taking strong action to close this exploit.”
What’s the future of crypto gambling website regulation, and where can players find trusted casino operators?
Regulators are working overtime to keep up as crypto gambling websites continue to attract attention from players (and investors). The UKGC’s 2025 report raised concerns about AI-generated fraud and crypto theft, pushing operators to adopt more sophisticated fraud detection tools. The UKGC is expected to introduce more stringent mandatory identity verification and source of funds checks for all players using cryptocurrencies. This would go beyond current KYC protocols, requiring operators to verify not only player identities but also the legitimacy of the crypto assets used for gambling. Blockchain transaction analytics tools, which were once nice-to-have, well, now, they are a must-have.
So, where can players find a trustworthy crypto casino?
For players, your best bet is to choose a licensed operator, like those listed on Betconix. These platforms passed rigorous compliance checks and are legally proven to protect their users. That includes you, your funds, and yes, your right to withdraw your winnings without jumping through hoops.
Choosing a licensed crypto gambling website, such as those our expert team has reviewed and listed, ensures a safer and more secure experience. It’s not new to hear players complaining about gambling websites that don’t allow them to withdraw their winnings after big wins, or those that try to take away bonuses when a user is on a winning streak. Yes, this happens especially if you go to unverified websites. However, if the casino is licensed, they can’t do that because they know your complaints will be worked upon by the regulatory boards, and there could be a chance of recovery and them facing a major blow.
Conclusion
Steps have been taken by the UKGC to regulate the use of cryptocurrency gambling websites. By setting stronger regulations and calling for more ID checks, they are making sure that operators take compliance seriously, not just on paper. Platforms like Spreadex, AG Communications, and Greentube Alderney have been fined, making it clear that breaking the rules will have repercussions.
Betconix has done the bigger job for players, which is to review and list the best crypto gambling websites that follow regulations and won’t screw you over. As we now know, a smoother, safer betting experience is guaranteed for players who use a crypto casino with a UKGC license, like those on Betconix.
Want the latest scoop on crypto gambling? The Betconix blog is a great place to start!
Key Takeaways:
The UK Gambling Commission allows licensed operators to accept crypto deposits, but only if they meet the regulatory framework.
Most operators consider the UKGC rules on crypto gambling very strict, and no one so far has registered a crypto-only casino in the UK.
To keep things simple for players and not to hinder innovation, UKGC allows operators to use third-party payment services that allow users to exchange crypto into fiat currencies before depositing to the casinos.
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