Are Crypto Casinos Legal in The US?
Crypto Casinos and US Laws
Crypto casinos, which offer players an opportunity to gamble with crypto tokens with fast transaction speeds, privacy features, and provably fair gaming, have gained popularity over the years.
Yet the legal outlook for crypto gambling in the United States is murky, thanks to a patchwork of federal regulations and state laws.
This article examines whether or not crypto casinos are legal, which states allow them, which regulatory gray areas exist, and what decentralized platforms such as YEET Casino are doing to be compliant.
By knowing the US crypto gambling laws, players are able to decide whether they want to play at safe crypto casinos.
Federal Landscape: Not an Explicit Ban, but Restrictions Prevail
At the federal level, there are no crypto gaming laws that specifically forbid crypto casinos, though certain important laws severely complicate matters for both operators and customers.
The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) is the dominant federal statute that affects online gambling. It bans businesses from knowingly accepting payments in connection with unlawful internet gambling but does not criminalize bettors.
The UIGEA specifically applies to traditional means of deposit and withdrawal, such as banking transactions or credit cards.
It does not have any mention of cryptocurrencies, putting the status of crypto gambling in a legal twilight zone.
FinCEN Guidance
The Financial Crimes Enforcement Network (FinCEN) deems online casinos that can be used to exchange convertible virtual currencies (CVC), which include Bitcoin, as money transmitters in a Bank Secrecy Act (BSA) context.
As a result, they are required to comply with stringent anti-money laundering (AML) and know-your-customer (KYC) rules, making the life of crypto casinos that serve US-based players difficult.
Is Bitcoin Legal?
In the United States, cryptocurrencies are considered virtual currencies, and they are deemed legal in all 50 states.
But using crypto to do illegal things, like gambling in places where it’s outlawed by the states, could break federal laws.
There is no federal law that prohibits cryptocurrency gambling, and while the individual states ultimately have authority over the matter, most do not have regulations in place that specifically address the use of cryptocurrencies.
This has led to a so-called patchwork of states with different rules and regulations, and the online casino legality in the USA ranges from being completely legal in some states to totally illegal in others.
What is Crypto Gambling?
State by State: Where Crypto Casinos Are Allowed
States have their own laws regarding gambling, both online and for cryptocurrencies, causing even more confusion.
Here is a summary of states with, without, and in-between crypto casinos.
US States Where Crypto Casinos Are Legal
Seven states have legalized online casino gambling, expressly permitting regulated online platforms to operate.
These states allow crypto casinos to operate if the casinos are state-licensed and apply state money laundering (AML) and know-your-customer (KYC) procedures.
- Connecticut: Passed online casinos in 2021. A crypto casino would need to be approved by the Connecticut Department of Consumer Protection.
- Delaware: Online casinos are legal and regulated by the Delaware Lottery since 2013. Crypto transactions are allowed with certain licenses.
- Michigan: Online casinos are now legal in Michigan, launched in early 2019 with the Michigan Gaming Control Board. Crypto casinos need to be regulated by the government.
- New Jersey: With online gambling operating since 2013, the state allows crypto casinos if they have a license from the Division of Gaming Enforcement.
- Pennsylvania: Legalized in 2017, Pennsylvania allows online casinos under the Pennsylvania Gaming Control Board. Licensed operators do accept crypto.
- West Virginia: Online casinos are allowed in this state since 2019. West Virginia allows online casinos under the West Virginia Lottery Commission, with cryptocurrencies being used for transactions in legal platforms.
- Rhode Island: Online casinos legalized in 2024 and regulated by the Rhode Island Division of Lottery. To run crypto casinos, state approval is needed.
Which of These States Do Crypto Casinos Like YEET Use to Operate?
These are the states that crypto casinos, like YEET Casino, can use to operate legally, with states issuing licenses to their operators, monitoring player locations through geo-targeting, and having reliable Anti-Money Laundering/Know Your Customer (AML/KYC) systems.
But most of the licensed platforms in these states emphasize fiat payments because regulators around the world are closely watching to make sure citizens aren’t using crypto to get around local laws.
YEET casino’s crypto-first approach doesn’t have this problem as its state requirements are met with its Curacao and Anjouan licenses.
States with Laws That Are Partial/Unclear
Certain states offer certain forms of online gambling (such as sports betting and poker) but don’t have clear rules for online casinos or digital currency-based betting, adding nuances to the equation.
- Nevada: Allows online poker and sports betting but not full online casinos. Crypto casinos are questionable in terms of their legality, but Bitcoin itself has never been flagged.
- Virginia: Online sports betting is allowed, but there are no online casinos regulated by the state. Crypto casinos exist in a gray area.
- Oregon, Indiana, Rhode Island (pre-2024): These states previously permitted online sports betting but not online casino games. Rhode Island’s 2024 casino legalization ironed out rules, while crypto remained unregulated.
Offshore crypto casinos such as YEET casino may be able to take players from these states, but as there is no state regulation, the players are taking a bit of risk into their own hands if they decide to play.
YEET does all it can to put the player at ease with international licensing and provably fair games.
States Where Crypto Casinos Are Illegal
Some states outlaw online gambling as a whole, which is why crypto casinos are also included in that form of gambling.
- Washington: The lone state with a law against online gambling, including games like poker on offshore sites. And the players are running some legal risk, although enforcement is rare.
- Utah: Draconian anti-gambling laws make all forms of gambling, including crypto casinos, illegal.
- Hawaii, Idaho, Louisiana: All online gambling is illegal here, and gambling with crypto is a quick way to break their laws.
In these states, it is better that players stay away from crypto casinos to abide by the local laws. YEET casino restricts access from these regions with IP geoblocking methods in order to remain in compliance.
Gray Areas in Regulation
The majority of states fit into a gray zone in that online wagering is neither legal nor unambiguously illegal—and US crypto gambling laws do not specifically mention cryptocurrencies.
- No Actual Crypto Laws: In the majority of states, there are no specific laws that label online Bitcoin casinos as illegal, but there can also be no laws that classify them as legal.
- Offshore Platforms: A number of crypto casinos, like YEET casino, are based in jurisdictions such as Curacao or Anjouan. But in states like New Jersey, offshore casinos are illegal, which leaves players exposed to legal risks.
- Who Is in Charge: Officials more commonly go after the operators, not the players themselves. There have been no recorded cases of US players being prosecuted for playing at crypto casinos, and with new laws open for discussion, there may yet be more liberal laws on the horizon.
The legal gray area enables platforms such as YEET casino to cater to players in unregulated states, but individuals who wish to stay on the right side of the law should check local regulations.
Crypto Casinos: Making Gambling Honest With Blockchain | Blockchain Central
Crypto Casinos and How YEET Casino Plans to Stay Legit
Crypto casinos use blockchain to provide a secure and transparent way to gamble.
Dissecting their mechanics and YEET casino’s approach to compliance shows just how they’re working their way around the US legal environment.
Mechanics of Crypto Casinos
- Blockchain Payments: Gamers’ account crypto balances can be replenished via digital wallets (MetaMask, Phantom) to the casino’s wallet. Winnings are sent to the player’s wallet, and all transactions are recorded on the blockchain to ensure fairness.
- Provably Fair: Games are fair, and outcomes can be proved with cryptography. This technology is used by YEET casino’s games, such as slots and NFT-themed originals.
- Minimal KYC: Rather than having to provide even more personal details than their fiat-based counterparts, crypto casinos sometimes do not require more than them—the KYC checks are currently applied for those who want to withdraw $10,000 or more, resulting in a mix of privacy and compliance.
- Smart Contracts: Some platforms pay you out via smart contracts. I handle it this way to comply with any regulatory requirements.
Compliance: YEET Casino’s Compliance Philosophy
How a company complies with its regulators goes a long way in expressing the company’s overall philosophy towards compliance.
YEET Casino, founded in 2025 by crypto sensations Keyboard Monkey, Mando, and professional poker player Ben Lamb, is a native crypto platform that has recently received $7.75M in funding from Dragonfly Capital and angel investors.
Its approach to compliance means it runs as a legitimate service in the US.
- Dual Licensing: YEET casino is licensed by the Curacao eGaming and Anjouan—two of the jurisdiction leaders for crypto casinos. Such licenses require AML/KYC compliance, fair play, and protection of players according to US state laws in their legal jurisdictions.
- Geo-Targeting and Geographic Restriction: Access is restricted using IP geo-blocking in banned areas such as Washington and Utah, adhering to local laws.
- Provably Fair Technology: All YEET casino games are based on provably fair algorithms, so you can verify all results to ensure trust and transparency in line with regulatory requirements.
- Compliance & ID Verification: For withdrawals over $10,000, YEET casino applies automated verification with manual approval within hours. This will satisfy FinCEN BSA mandates and state law under the legal jurisdiction.
- Security Infrastructure: YEET casino employs multi-sig wallets and SSL encryption to secure funds, addressing one of FinCEN’s biggest complaints when it comes to the security of crypto transactions.
- Transparent Operations: YEET’s terms are leading the industry and are transparent, explaining deposit/withdrawal procedures, fees, and bonus regulations, ensuring trust and adherence to customer protection regulations.
Through doing business offshore with a global license and allowing you to make copies of yourself wherever gambling is legal or unregulated, you had to pay in one fish; everything else must be returned.
With a crypto-first stance backed up by BTC, ETH, SOL, and more, in the quest for privacy and a fast experience enjoyed by US customers and its adherence to compliance laws showing it doesn’t just overlook rules, this is a provider that is based on legitimacy.
Finding Your Way Around the Dangers and Determining the Safe Crypto Casinos
And though YEET casino is a trusted platform, players would want to be careful with the hazy legality of crypto gaming regulations. Here are some pointers for recognizing secure crypto casinos and minimizing exposure to risks.
The Reliable Crypto Casinos’ Giveaways to Look Forward to Include
- Licensing: Only go for casinos that are licensed by a trusted authority, such as Curacao, Anjouan, or Malta Gaming Authority. YEET is dual-licensed for regulatory supervision.
- Provably Fair Games: Choose sites that provide proof for the results of the games. YEET casino’s provably fair model is a standard for how fairness should be.
- Legitimate Operators: Look at the backgrounds of the casino’s founders and backers. YEET casino’s roster, which features known crypto figures and investors like Dragonfly Capital, gives them further credence.
- Security: SSL encryption, multi-signature wallets, and two-factor authentication are standard on many platforms. I can’t give enough credit to YEET casino for the very strong security they have to protect the funds and data of our players.
- Transparent Terms: Reputable casinos have fair terms for deposits, withdrawals, and bonuses. Simple policies allow for more trust in YEET casino.
- Positive Reviews: Take a look at player reviews on platforms like Trustpilot. YEET casino’s positive reviews also emphasize reliability and support.
Risks to Avoid
- Unlicensed Casinos: If these platforms don’t contain licenses, they might as well be scams. As always, you will want to check the licensing as YEET casino has done with Curacao and Anjouan.
- Restricted States: Do not play in states that ban sports betting, such as Washington or Utah. The geo-blocking of YEET casino at least makes it a bit easier for players to stay compliant with these evil YEET-hating countries.
- Lack of Transparency: If a casino has unclear terms or hidden fees, there is a danger. Clear policies from YEET casino solve for this.
- Misplaced Emphasis on Anonymity: Some of that mystery and privacy of the crypto space, well, it’s great, but relying entirely on privacy and anonymity without any KYC can look like a lack of compliance. Safety is guaranteed by YEET casino balanced KYC mechanism.
Steps to Follow for US Players
- Check Allowed by Local Law: Verify if, as per local law, online gambling is allowed. Refer to resources such as state gaming commission websites.
- Opt for Licensed Sites: Opt for casinos that are licensed in Curacao or Anjouan, such as YEET casino, for some measure of regulatory security.
- Use Secure Wallets: Keep money in legitimate crypto wallets (MetaMask, Ledger) and turn on 2FA.
- Check Fairness: Play only on sites with fair gameplay—such as YEET casino—and compare your odds regularly.
- Join Small: Deposit little to check the withdrawal speed and support response time.
- Limit Your Stakes: Ensure that gambling remains an entertainment activity by setting a budget and time limits; this way, you will never risk falling into addiction.
Conclusion
Players should always check local US crypto gambling laws, but trusted casinos such as YEET casino really do set the standard for casino trust and security—with transparent operations, security, and regulatory compliance.
By sticking to state laws and favoring licensed casinos, US players can safely partake in online casino legality in the USA and take advantage of cryptocurrency gambling too.
Have a good time with crypto gambling and register in Yeet Casino now!
Want to learn more? Check out these related guides:
Cesar Pinto
Cesar Pinto
Cesar Pinto
Cesar Pinto
Cesar Pinto