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Crypto Betting in the USA: Legal Overview & Trusted Sites

By Tolu Shotade

24 Oct 2025

Tolu Shotade 24 Oct 2025

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Crypto betting legalities vary by US state with no federal laws.
Top sites available to US players include Stake, Shuffle, and BC Game.
Wyoming allows crypto for betting; Utah and Hawaii strictly prohibit gambling.

Cryto betting USA

Crypto betting in the USA is a complex and constantly evolving landscape. This is largely due to the fragmented nature of gambling laws across individual states and the recent emergence of cryptocurrencies.

There are no overarching federal laws legalizing or prohibiting crypto betting, with the regulation of gambling falling primarily to individual states, creating complex layers of varying laws.

We will take a look at the legal overview surrounding crypto betting in the USA, offering a breakdown of the intricacies.

Top Crypto Betting Sites Available to US Players

Before we delve into all the details around cold storage, it helps to know the global crypto betting sites that are available to US players, though not regulated in the country. Below is a list of some of the more prominent platforms:

Is Crypto Betting Legal in the USA?

Yes, crypto betting is legal in the USA. While there are no overarching federal laws legalizing or prohibiting crypto betting, with the regulation of gambling falling primarily to individual states.

Ensure that whatever betting site you choose is fully licensed and regulated by the relevant authorities in the state you are playing from.

Legal Overview of Betting in the USA

As stated earlier, there are no specific laws allowing or prohibiting crypto betting in the USA as the primary authority for regulating gambling resides with individual states. This leads to a diverse and often contradictory set of laws regarding online gambling and, by extension, crypto gambling.

New Jersey, Pennsylvania and Michigan are among 39 states in the USA where online betting is allowed. While a lot of these operators only allow gambling with traditional fiat currency, some are beginning to explore the possibility of using crypto as a payment method.

However, it should be noted that in these states it is required that the cryptocurrency be immediately converted to USD before being wagered, with player accounts held in fiat. This indicates a cautious approach, where the crypto acts more as a deposit method than the direct currency of wagering.

Wyoming is noted as one of the first states that has explicitly recognized crypto, digital, or virtual currencies as an approved payment method for online sports betting.

Utah and Hawaii have some of the strictest gambling laws in the USA and prohibits all forms of gambling, including online betting. Meanwhile, Alaska has limited gambling options and has not legalized online gambling.

Offshore Crypto Betting

Due to the restrictive and inconsistent regulations within the US, many American players often go to offshore crypto betting platforms. These sites operate outside of US jurisdiction and are not licensed or regulated by any US state or federal authority.

While this concept appears appealing, there can be some risks engaging with offshore platforms as players have little to no legal recourse in case of disputes or unfair practices. They are not subject to the same consumer protection laws, responsible gambling mandates, or auditing requirements as regulated US operators.

Things to Consider Before Choosing an Offshore Crypto Betting Site

With offshore crypto betting sites not subject to US laws, it is important to choose legitimate platforms to avoid falling victim to scams. We will now offer some things to consider before opting for any offshore betting site:

Legality

The first thing to consider before choosing an offshore crypto betting site is legality of the platform. Always ensure that your chosen operator has a license from reputable gambling authorities

Some of the more popular licensing bodies are Malta Gaming Authority, Curaçao eGaming, UK Gambling Commission, Gibraltar Regulatory Authority.

Crypto Availability

The point of seeking out an offshore crypto betting site is to wager with cryptocurrency. It is vital to ensure your chosen platform accepts a wide array of crypto currencies. Unlike operators in the US that require the crypto be converted to USD, a lot of offshore platforms carry out their transactions directly with cryptocurrencies.

User friendliness

Betting is usually a simple and straightforward process and should be done with minimal fuss. A cluttered site makes it tricky navigating through the numerous sections, so a good crypto betting site should have a user-friendly interface.

It should be easy to navigate the different sections of the page. Carrying out your wagering needs from making deposits, withdrawals and claiming your bonus, should be done with minimal fuss.

Bonuses and Promotional offers

Everyone likes freebies so bonuses and promotional offers will be a major consideration when choosing a sports betting site. The welcome offer is usually your first introduction to promos on a betting platform and the ones with generous bonuses.

There are also other offers that may catch your attention like the loyalty bonus, accumulator bonus and numerous free bets.

US Crypto Betting Tax

Regardless of the restrictions on the activity, winnings from crypto betting are generally considered taxable income in the US. They are typically reported as "other income" on federal tax returns.

If you dispose of your cryptocurrency either selling after winning or even exchanging one crypto for another, it can trigger capital gains or losses, which also have tax implications.

It is important for individuals engaged in crypto betting to maintain detailed records of all transactions, including initial deposits, winnings, and conversions, for tax reporting purposes.

Crypto Betting in the USA FAQS

Is Crypto Betting Legal in the USA?

Yes, crypto betting is legal in the USA. While there are no encompassing federal laws legalizing or prohibiting crypto betting, with the regulation of gambling falling primarily to individual states.

Ensure that whatever betting site you choose is fully licensed and regulated by the relevant authorities in the state you are playing from.

How do State Laws Impact Crypto Betting?

With the primary authority for regulating crypto betting residing with individual states, it creates an irregular patchwork of regulations. Some states only allow crypto for deposits, while some have fully prohibited any form of gambling.

Are There Any US States Where Crypto Betting is Legal and Regulated?

Licensed operators that accept crypto deposits, typically require an immediate conversion of the crypto to USD before the funds enter your betting account. However, Wyoming remains the only state that expressly recognizes crypto, digital, or virtual currencies as an approved payment method for online sports betting.

Are Offshore Crypto Betting Sites Safe For US Players?

Due to the restrictive and inconsistent regulations within the US, many American players often go to offshore crypto betting platforms. These operators are safe as long as they are licensed by some of the more prominent authorities like Malta Gaming Authority, Curaçao eGaming, UK Gambling Commission, Gibraltar Regulatory Authority.

Are Crypto Betting winnings taxable?

Regardless of whether the gambling activity is conducted on a US-regulated platform or an offshore site, all gambling winnings are considered taxable income by the IRS, including winnings from crypto gambling. Also, disposing of your crypto can trigger capital gains taxes. Accurate record-keeping is crucial.

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