Legal Ethereum Gambling In The United States

Ethereum is a public blockchain network, much like Bitcoin. However, there are some differences (explained more in detail below). Within the Ethereum blockchain exists a tradeable currency known as Ether, or ETH. This currency is decentralized and independent, meaning it is not regulated by any bank or third-party institution. Ethereum's blockchain hosts various smart contracts that can be used to develop decentralized applications and functions.

Ethereum gambling works just like any other type of online gambling. Bettors create an account and deposit Ether. Once they have an active ETH account balance, they can play various online casino games, poker and place bets on sports at licensed offshore destinations that accept cryptocurrency deposits. When gamblers are ready to make a withdrawal, they can request one through the site’s banking suite.

After acquiring Ethereum, you’ll want to store it in a digital or hardware wallet. Digital wallets are online services where you can store digital currencies. These come with unique private wallet addresses that are entered in when attempting to send or receive Ether. Since each transaction ID is unique, you can rest assured your transactions are safeguarded. Hardware wallets are the most secure option and require you to store your Ethereum on an external hard drive or USB drive. The only risk with this is if you lose your hardware wallet, you lose all your Ethereum.

So, after you have purchased Ethereum and have it stored in a wallet, you can safely make transactions with licensed Ethereum gambling sites. Simply navigate to the Cashier page, select the Ethereum option, enter in how much you wish to deposit or withdraw and then enter the digital wallet address prompt. Once the information has been confirmed, your transaction will process. Most transactions are processed instantly.

Update: As of late 2020, PayPal now also supports Ethereum, allowing users to buy the cryptocurrency right within the PayPal app itself. While you can store your ETH in your PayPal account, you cannot send it to any external recipients at launch. Once you're able to do that, however, we still recommend moving it off of the PayPal platform and to an ETH wallet or online exchange if you intend to make legal online gambling deposits with the crypto coin.

You can also see our other altcoin guides that detail how to fund an account with Dash, Bitcoin, or Litecoin.

Bitcoin was developed for one purpose—peer-to-peer digital currency exchange. While this service exists on the Ethereum blockchain, there are a lot more capabilities with Ethereum than Bitcoin. One key difference comes down to scaling. Bitcoin block sizes are limited in size—a problem developers have worked to address—meaning that only so many transactions can be processed at a time. Ethereum does not have this same problem. With the capability to process more transactions, there will be much less of a delay with Ethereum transactions versus Bitcoin.

Perhaps the most significant difference is the use of smart contracts, which are blocks of computer code used to carry out a function. In this case, a smart contract would facilitate the exchange of money between the user and gambling site. Only certain online casinos operate on the Ethereum blockchain. In these cases, smart contracts would be developed between parties. At most Ethereum gambling sites, a digital wallet is used.

There are several advantages in using Ethereum to fund your online gambling. Transactions are processed much faster because there is no additional verification required from regulatory financial agencies. Ethereum users also do not have to lose any of their winnings to transaction fees. Since Ethereum is decentralized, there are no third party groups that can claim a percentage of your transactions.

Another advantage is that most online gambling sites offer cryptocurrency-exclusive bonuses for bettors. Bonuses help extend your online gambling bankroll free of charge and are a special feature of offshore sites. These crypto-exclusive promotions show how online gambling sites are beginning to embrace digital currencies more and more.

An advantage to look out for in the future is the smart contract capabilities. Eventually, online gambling sites will exist solely on the Ethereum blockchain. These types of sites could have special features unique to Ethereum users, similar to Bitcoin’s Provably Fair technology. As the digital currency market expands, and Ethereum continues to rise in popularity and applicability, more applications will be developed that could reshape the online gambling landscape.

Yes. Ethereum gambling is safe. Digital wallets utilize unique transaction IDs that change with each use. This prevents hackers from gaining access to your information. Also, online gambling sites employ their own security protocols that safeguard your personal information.

Cryptocurrency transactions are different because no financial information is stored with the gambling site. You simply enter in the amount of ETH you wish to deposit/withdraw, the Ethereum wallet address of your legal betting site (i.e. the recipient), and you’re done.

You can do this in several ways. The most popular is to buy Ethereum directly from a digital currency vendor. Coinbase is one of the most well-known alternative currency vendors on the market, though others like Kraken and Bittrex are popular, too. Another way is to purchase Ether from a private seller. You could also mine ETH by developing apps on the blockchain, but this a more technical route. Most online gamblers simply utilize merchant providers.

As of 2020, the newest and fastest option is to use PayPal to buy Ethereum, as PayPal has finally integrated crypto acquisition into its platform. To buy Ethereum with PayPal, just log into your PayPal app, select the cryptocurrency from the appropriate marketplace tab, and turn your USD into ETH. From there, once launch restrictions are lifted, you will be able to move your Ethereum to online exchanges or into your ETH wallet. Then, simply select the Ethereum deposit option at your betting site of choice and send your digital currency to the ETH address provided.

Finally, yes, you can!

It may have taken years, but in late 2020, PayPal announced that it is now supporting a host of cryptocurrency purchasing options on its platform, including Ethereum. With PayPal Ethereum support, it's now easier than ever for prospective online bettors and gamblers to purchase ETH, as they can do so directly and simply within their existing PayPal apps. That said, you will not be able to send Ethereum from your PayPal app for the time being.

It is unclear when PayPal will allow customers to directly send ETH payments to online casinos operating legally overseas, though we expect this will be a possibility. If not, once external transactions are allowed in any capacity, you can still do this simply by first transferring your ETH out of your PayPal account to an Ethereum wallet or another online exchange (i.e. Coinbase, Bittrex, etc.), and sending it from there to your legal betting site of choice.

If you wish to gamble with Ethereum, please wait until PayPal removes its sending restrictions before purchasing ETH via the service. In the meantime, you can buy Ethereum as usual on the various online crypto exchanges.