The Eurozone region has been witnessing wholesale changes in gambling regulations. Many European countries are trying to protect their citizens by conceptualizing strict regulations for gambling companies, however, in doing so, they are indirectly affecting Bitcoin.
Among some of the countries who have taken up the mantle of changing gambling regulations in Europe are the Czech Republic, Netherlands, and Poland. These countries have already implemented wholesome changes in the gambling industry and their effects somehow seem to work in favour of bitcoin.
Before we delve much into how Bitcoin is benefiting from Europe’s new rigid regulations, we shall start by detailing these new regulations.
In the Czech Republic, a two tier taxation system has been established in an effort to cushion the profits of gambling companies. This two tier tax system has made the Czech Republic the country with the highest tax rates in the whole of Europe and probably the world. There is a 19% corporate tax that every gambling company is liable to pay. On top of that, every game which yields a winner will be taxed35% on gross revenues. The Czech Republic is also blocking IPs of unregulated operators.
In Poland, tax for gambling companies has drastically risen to 12%. Poland also stipulates that gambling companies have to employ local workers. Considering that local labour may at timesbe expensive and not technically astute that has made it difficult for gambling companies to keep their operations in Poland.
In Netherlands, gambling companies are required to register and be licensed by the local regulator. Stringent conditions are in place which makes it extremely difficult for foreign gambling companies to acquire the Netherlands gaming license.
These new regulations are not just affecting online gambling companies but have spread out to land based casinos. These European governments are blocking the IPs and payments and deposits accounts of unregulated operators.
Some of the world’s biggest casino houses have already departed some of these markets. Houses like William Hill, Bet365, and 888 casinono longer operate in Poland. Many others have voiced their concern over the new regulations and are muting departure in these markets.
Though there is a rising discontentment among many gambling companies owing to the new strict gambling regulations in the Eurozone, a closer look suggests that there is one party which looks likely to benefit immensely from these changes and that is bitcoin.
Governments are finding it much easy to ask payment system providers block the deposit accounts gambling companies using fiat currencies but they may find it extremely difficult if not impossible to do the same if gambling companies switch to cryptocurrency. Currently, there is no legal way that a government can use to cut off Bitcoin operations under a country’s jurisdiction. With an unregulated currency like bitcoin, governments will be faced with a daunting challenge if they are to block or ban deposits.
Online unregulated operators with no addresses can also make use of Bitcoin’s anonymity to transfer funds to their crypto gambling sites without being detected by local governments.
Bitcoin is an escape route for both the gambling companies and players alike. Using Bitcoin will mean that all the parties involved will be able to bypass state regulations. Also, the use of bitcoin is anonymous thus it will be impossible to track the gross revenue generated by gambling companies for taxation purposes.
A new wave of the adoption of Bitcoin is on the horizon in the gambling industry. Gambling companies seem like they will have to move to cryptocurrency an alternative to fiat currency that is being highly regulated by governmentsto generate more profits.