This article from our legal experts helps you understand what the requirements are and how to meet them. We provide a step-by-step guide with useful details and give advice on how to send an application first-time-right.
Highlights:
- If you are interested in a quick and easy process, pay attention to Cyprus or Costa Rica gambling authorities.
- Some authorities are required to have business registration in their territory.
- The price of the Bitcoin-only license wouldn’t be smaller, so it might be beneficial for the business to consider the option of adding altcoins and fiat payments along with Bitcoin.
- The advantages of having a crypto gambling license are credibility, more partners, wider geography, and financial perks.
What is a Crypto Casino and How Does It Work?
A crypto casino is an online gambling platform that accepts cryptocurrencies like Bitcoin, Ethereum, Litecoin, and other digital currencies for deposits, wagers, and withdrawals. Unlike traditional online casinos that rely on banks and credit cards, these platforms operate on blockchain technology.
How Crypto Casinos Function
Deposits and Withdrawals Players transfer cryptocurrency directly from their digital wallets to the casino’s wallet address. The process takes minutes instead of days. When you win, funds flow back to your wallet almost instantly—no waiting for bank approvals or payment processor delays.
Blockchain Technology Every transaction gets recorded on a public ledger that anyone can verify. This transparency prevents tampering and builds trust. The decentralized nature means no single entity controls the money flow.
Provably Fair Gaming This is the game-changer. Traditional casinos ask you to trust them. Crypto casinos let you verify fairness mathematically. Each bet generates a cryptographic hash that players can check independently. The algorithm proves the outcome wasn’t manipulated after you placed your wager.
Smart Contracts These self-executing programs automate payouts without human intervention. Win a jackpot? The smart contract releases funds automatically. No “processing delays” or mysterious hold-ups.
How to Start a Crypto Casino: Step-by-Step Guide
Planning to start a crypto casino requires three fundamental pillars: legitimate licensing, dependable software, and bulletproof payment systems. Initial capital needs range from $50,000 to $300,000. The reward? Access to a rapidly expanding digital gambling marketplace worth billions.
Obtain Proper Gaming License
Legal authorization separates legitimate operations from illegal ventures. Various jurisdictions offer gambling licenses with different requirements and reputations. Some prioritize accessibility with streamlined processes, while others demand rigorous compliance but deliver stronger market credibility.
Timeline varies between 2-6 months depending on the chosen regulatory body. Required documentation typically includes:
- Comprehensive business strategy outlining revenue models and target demographics
- Financial statements proving adequate capitalization
- Background verification for all stakeholders and management
- Technical audit reports demonstrating fair gaming protocols
Licensing fees span a wide spectrum. Budget-conscious operators find affordable options starting around $15,000 annually, while premium regulatory frameworks can demand $50,000+ just for initial applications. Research thoroughly before committing.
Select Software Platform
White-label solutions provide the fastest path to open a crypto casino. Pre-built platforms deliver complete gaming ecosystems—hundreds of titles, payment gateways, and player management systems ready immediately. Custom development offers maximum control but multiplies costs and delays launch significantly.
Starting with established platforms makes financial sense. Customization comes later as revenue grows. Critical features include:
- Extensive game selection spanning multiple categories and providers
- Provably fair technology ensuring verifiable randomness
- Mobile-optimized interface for all devices
- Support for multiple cryptocurrencies and tokens
Platform providers charge $10,000-$40,000 monthly depending on functionality and player traffic. Calculate these recurring expenses carefully when projecting profitability.
Establish Payment Processing
Bitcoin and Ethereum remain essential, but diversification matters. Support for various cryptocurrencies attracts broader audiences. Specialized payment processors designed for gambling handle technical blockchain aspects automatically.
Transaction speed makes or breaks player experience. Instant deposits keep players engaged. Withdrawals processing within minutes—not days—build trust and encourage return visits.
Security infrastructure protects against catastrophic losses. Cold storage keeps the majority of funds offline and unreachable by hackers. Hot wallets maintain sufficient liquidity for instant payouts. Multi-signature technology adds critical protection layers.
Attract and Retain Players
When you start a crypto casino, marketing becomes the biggest ongoing challenge. Affiliate networks deliver steady traffic but consume 25-40% of gaming revenue. Building relationships within crypto communities through authentic participation generates organic growth.
Competitive welcome packages typically offer 100-200% deposit bonuses. Standing out requires more than promotions—superior odds, instant support responses, and seamless user experience separate successful platforms from failures.
Search optimization focuses on specific gambling niches rather than broad competitive terms. Content creation establishes expertise while navigating advertising restrictions on mainstream platforms. Crypto-focused forums provide targeted reach when engagement feels genuine.
Most operators need 12-18 months before achieving profitability. Early months drain capital reserves. Sustainable success demands patience and adequate funding to weather initial losses.
Crypto Casino License Requirements
The requirements that should be met to receive a license vary heavily depending on the selected jurisdiction. While some authorities might request over 10 different documents and conduct a serious check-up before issuing a license, others keep the list of requirements short. Still, there are several requirements that are common for all the jurisdictions, namely:
Comprehensive business plan and information about the company.
Reliable privacy and customer protection policies that are compliant with gambling requirements.
Information about the company’s financial structure, employees, and partners.
AML-CFT and KYC policies in place.
How to Get a Crypto Gambling License
While the process of getting a crypto casino license is quite similar to the traditional certification of a casino with fiat currencies provided, it is still slightly easier to obtain it. What is essential is to ensure that all the steps are done correctly. To give you a clear picture of what you can expect, we have provided a short step-by-step guide.
Choosing the Country & Location
Step 1
Crypto casino license registration begins with choosing a jurisdiction that suits your business the most. Consider whether you are able to pass scrupulous checks on the administrative and financial sides of your company. If yes, try to obtain a permit from more demanding jurisdictions (like the UKGC or MGA). High
Selecting License Type
Step 2
Then, decide on the type of the license. Do so by considering the purpose of your company. Pay attention if the selected jurisdiction requires separate crypto gambling licenses for slots, live dealer entertainment, and sportsbook.
Crypto Business Registration
Step 3
It is essential to decide on the licensing jurisdiction first, and only after that register your business. Why? Some authorities have a requirement of having business registration on their territory. If you plan to apply for a gambling license in such a jurisdiction (or any others as well), get acquainted with all the requirements. Once you review all the available information, you will be able to select the safest location for a Bitcoin gambling license. Only after that should you set up your company.
Collection and Preparation of All the Documents
Step 4
Once your business is registered, it is time to collect all the documents that might be necessary for a license application. Again, the exact requirements might vary slightly. However, we have included a comprehensive list that includes all the documents that might be requested by a certifying authority in this article for you to have a clear picture of what might be requested.
Application for a Gaming License
Step 5
When all the documents are ready, you can fill out an application form and attach all the required documents. Given that your request might be rejected because of errors in the application form, it is better to inquire for legal help at this stage as well. Ensure that the selected company has enough expertise in this matter.
Obtaining a Crypto License
Step 6
This is the step that does not require much action from you. Once your application is submitted, you just need to wait for the licensor to issue a license. If your application was attended by professionals, you do not have any reason to be concerned with the final decision.
List of All Required Documents
Step 7
In order to get a gambling license, you need to send certain documents along with your application. The exact list depends on the selected jurisdiction. We have provided all the possible documents and grouped them by categories for convenience below.
Company-related:
- Certificate of Incorporation: It shows that you are the owner of the registered business.
- Articles of Association/Bylaws: Additional documents that provide information on the company structure.
- Business Plan: It should contain information about your business model, target markets, plans, etc.
- Shareholder Register: It shows stakeholders and their share in the company.
- Police Clearance Certificates: Their purpose is to show that key personnel have a clear criminal record.
- Proof of Address: It shows the physical address of the company.
- Bank Statements: It demonstrates the financial stability of the company.
- Audited Financial Reports: This verifies your business credibility.
Applicant’s Personal Documents:
- Personal Identification Documents .
- Curriculum Vitae (CV).
Casino-Related Policies and Certificates:
- AML/CFT Policies.
- KYC Procedures.
- Terms and Conditions/Privacy Policy.
- Responsible Gambling Policies.
- Software Certificates.
- System Architecture Overview.
- RNG Certification.
Regulation and Taxation of Crypto License
Regulation and Taxation of Crypto License in the USA
American crypto gambling exists in a legal minefield. Each state writes its own rulebook, creating a patchwork nightmare for operators. Federal agencies treat cryptocurrency as property, meaning every transaction triggers potential tax implications.
Operating without a proper crypto casino license invites disaster. Federal prosecutors have seized domains, frozen bank accounts, and pursued criminal charges. The IRS demands exhaustive records, treating crypto winnings as taxable income with no exceptions.
Nevada and New Jersey lead the pack with established frameworks. Getting licensed there means:
- Surviving background investigations that scrutinize every business associate
- Proving liquid capital exceeding seven figures
- Submitting to perpetual audits and compliance reviews
Tax burdens vary wildly. Some jurisdictions skim 6.75% off gross revenue. Others demand more than half. Location determines whether your crypto casino license becomes profitable or purely ceremonial.
Regulation and Taxation of Crypto License in the EU
Europe plays the crypto gambling game differently. Malta became the blockchain casino capital, offering streamlined licensing that attracts operators worldwide. Curacao built an empire issuing offshore permits. Both jurisdictions understand that innovation needs room to breathe.
The EU’s Fifth Anti-Money Laundering Directive changed everything. Brussels tightened scrutiny on digital currency flows, forcing operators to demonstrate transaction transparency. Obtaining a crypto casino license now requires proving every euro’s origin.
Tax structures span the spectrum. Cyprus charges 10% corporate tax. German states can exceed 35%. VAT adds another 15-25% depending on location. Estonia’s e-Residency program offers digital-first licensing that tech-savvy operators embrace enthusiastically.
Gibraltar and Isle of Man created bespoke regulatory environments for blockchain gambling. These jurisdictions recognize that crypto casinos need specialized oversight, not retrofitted rules from the playing card era. Their crypto casino license frameworks balance innovation with consumer protection masterfully.
Regulation and Taxation of Crypto License in Asia
Asia presents a regulatory maze that confounds even seasoned operators. Japan recognizes Bitcoin legally but bans most gambling outright—a contradiction that frustrates potential licensees. The Philippines issued offshore permits through PAGCOR until recent crackdowns reversed course dramatically.
Singapore threatens severe penalties against unlicensed operators. Authorities there don’t distinguish between traditional and crypto platforms—illegal gambling is illegal, period. Hong Kong similarly applies century-old gaming prohibition to cutting-edge blockchain casinos.
The Southeast Asian picture shifts constantly:
- Thailand prosecutes crypto gambling under existing prohibition statutes
- Vietnam maintains blanket bans despite thriving underground markets
- Cambodia briefly welcomed operators before slamming the door shut
Tax clarity remains elusive. Most nations haven’t updated revenue codes for cryptocurrency, leaving operators guessing about obligations. Pursuing a crypto casino license in Asia demands exceptional legal guidance and political connections.
Regulation and Taxation of Crypto License in South America
Latin America represents the Wild West of crypto gambling regulation. Curacao licenses dominate despite geographic distance, becoming the default choice for operators targeting Brazilian and Argentine players.
Brazil inches toward comprehensive gambling reform. Legislators debate frameworks that might accommodate cryptocurrency explicitly. Argentina delegates authority to provincial governments, creating regional inconsistencies. Colombia requires COLJUEGOS authorization but treats crypto payments as standard transactions.
Taxation typically mirrors conventional gambling—12-30% of gross gaming revenue. Paraguay and Peru occupy regulatory gray zones. Neither explicitly permits crypto casinos nor actively prosecutes them. Operators navigate these markets cautiously, aware that political winds shift unpredictably.
The continent’s regulatory future remains unwritten. Smart operators monitor legislative developments closely before committing to any particular crypto casino license jurisdiction.
Are the Requirements & Process Relevant for Bitcoin-Only Casinos?
Certainly, yes. Bitcoin is the most popular cryptocurrency, and all the procedures related to getting a Bitcoin gambling casino license to run a betting business are the same as for any altcoin. Therefore, you can follow this guide if you plan to open an operator that accepts payments only in Bitcoin. However, the price of the license wouldn’t be smaller, so it might be beneficial for the business to consider adding altcoins and fiat payments along with Bitcoin.
Most Popular Cryptocurrencies in 2025
If you consider having altcoins along with Bitcoin, you might consider adding the following cryptocurrencies (or at least some of those that are currently in the top 5):
- Ethereum: There are many Ethereum holders among crypto gamblers, so it might be reasonable to include this altcoin in the list of accepted cryptocurrencies on your website.
- Tether: This is a stablecoin mostly used for trading, and players can easily buy it on any exchange. Given its low volatility, many prefer having their money in this cryptocurrency. Gambling in Tether gives a sense of stability to players.
- Litecoin: Even though transactions in Litecoin are processed slower than in some other altcoins, many casino customers use it because of low fees for transactions.
- Dogecoin: created as a meme at first, this cryptocurrency is currently among top altcoins, and many customers use it. It is relatively stable, so customers might prefer it over other more volatility tokens.
- Solana: This cryptocurrency has its highs and lows, but it is worth adding it to the list of payments, as it has its own network. The number of its holders is quite high, so it will be often used for transactions.
The good news is that all those currencies can be integrated into the platform if you have obtained a Bitcoin gambling license. Thus, you do not have to submit any additional applications.
Advantages of Having License for Crypto Gambling
Some of the clear benefits you receive, if you decide to obtain a crypto gambling license for your online operator, are listed below.
If you do not have a license or it is expired, you should be ready that the casino will be banned, as it is illegal to provide gambling services without proper licensing. To avoid this, ensure timely license application.
Who Needs a Crypto Gambling License?
Anyone accepting cryptocurrency for real-money gambling needs proper authorization. This includes casino platforms, sportsbooks, poker rooms, and lottery sites handling Bitcoin or altcoins. Software developers creating games for licensed operators may require separate certification.
Affiliate marketers face liability too. Promoting unlicensed crypto casinos can trigger legal consequences. Operating in the shadows exposes businesses to criminal charges, asset forfeiture, and permanent industry exclusion.
The penalties aren’t theoretical. Regulators worldwide have prosecuted operators who thought anonymity provided protection. Blockchain’s transparency actually makes tracking illegal operations easier than traditional gambling investigations.
How Legal Pilot Can Help With Obtaining a Crypto Gambling License
Legal Pilot is a law firm that specializes in gambling licenses and helps customers in all stages, from document collection to license issuance. The team of experts behind this company knows the laws of each market perfectly, helps customers obtain gambling permits, and provides support on any controversial matters. Referring to Legal Pilot is your guarantee that the application is filed correctly, and it is just a matter of time before it will be approved. Our team of experts revises everything diligently and speeds up the whole process.
FAQ
A crypto gambling license is a permit that allows casinos to provide gambling services that are related to transactions in cryptocurrencies.
This is a website that offers a classic dice game where bets can be made with cryptocurrencies. Such games are easy to play and boast a provably fair nature.
It depends on the jurisdiction and type of the license. Still, be ready to pay at least $20,000.
