Why crypto complicates esports betting regulation
Esports betting is regulated at the jurisdiction level, and cryptocurrency adds a second compliance layer: financial-crime rules for virtual assets. Globally, anti-money-laundering (AML) standards from the Financial Action Task Force (FATF) require countries to regulate virtual-asset service providers (VASPs) and apply the “Travel Rule” to crypto transfers, which affects how sportsbooks, wallets, and exchanges move customer funds.
In the European Union, the Markets in Crypto-Assets Regulation (MiCA) establishes uniform rules for crypto-asset issuers and service providers (including stablecoins), tightening transparency, authorization, and supervision. Sportsbooks operating in or targeting the EU that take crypto typically must integrate with MiCA-compliant providers.
In the United States, the Bank Secrecy Act framework—interpreted by FinCEN—treats many crypto intermediaries as money services businesses with KYC, AML, and reporting obligations; OFAC separately expects sanctions controls for virtual-currency flows. Sportsbooks and their payment partners must align with both regimes if crypto touches the transaction.
Great Britain (UK): Crypto is “high risk” and subject to strict checks
UK-licensed operators can accept digital currencies, but the Gambling Commission classifies crypto-sourced funds as high risk and expects enhanced scrutiny, robust AML controls, and social-responsibility safeguards. The regulator has refreshed guidance noting cryptoassets’ ML/TF vulnerabilities.
Separately, remote gambling rules require customers’ age and identity to be verified before gambling—tightening onboarding regardless of payment method.
European Union & Malta: MiCA meets established gaming oversight
MiCA now frames how EU-facing operators interact with crypto providers. In Malta—home to many remote gaming firms—the Malta Gaming Authority (MGA) has long engaged with DLT/virtual-currency issues and maintains a public licensee register bettors can search to confirm authorization.
Isle of Man: Explicit AML guidance for virtual assets
The Isle of Man’s Gambling Supervision Commission publishes dedicated AML/CFT guidance covering virtual assets and goods, signaling a risk-based pathway for gambling businesses that touch crypto while meeting stringent controls.
United States (state-by-state): Esports allowed in some markets, with conditions
The U.S. regulates sports and esports wagering at the state level. Nevada’s rules explicitly define esports and set integrity conditions sportsbooks must meet before taking bets (Regulation 22.1202). New Jersey permits wagering on approved events, which include esports under its maintained list. Always confirm whether your specific event and market are authorized.
Because crypto rails intersect federal AML/sanctions rules even when state gaming law permits esports betting, operators and payment partners must align with FinCEN/OFAC expectations if they touch convertible virtual currency.
Canada (Ontario): Esports included in igaming standards
Ontario’s open igaming market launched in 2022 under the AGCO. The Registrar’s Standards incorporate sport and event betting—explicitly including esports—within the regulated online framework.
Singapore: Tight licensing; unlicensed online betting remains illegal
Singapore consolidated gambling law under the Gambling Control Act 2022 and licenses Singapore Pools to run betting and lotteries. Offshore and unlicensed online gambling—including crypto-funded sites—remains unlawful.
Australia: Licensed local wagering only; ACMA enforces the ban on illegal sites
Online wagering is permitted only via licensed Australian providers; the ACMA enforces the Interactive Gambling Act against illegal offshore services. Consumers should use state-licensed books and avoid unlicensed operators, many of which target Australians with crypto-only deposits.
Sponsorship isn’t legality: Riot’s 2025 policy shift
In 2025, Riot Games opened betting sponsorships for Tier-1 League of Legends and VALORANT teams in the Americas and EMEA with integrity guardrails. That change affects marketing, not whether a given sportsbook is legal in a fan’s country—local gambling law still governs where and how bets can be placed.
Practical compliance checklist for crypto-funded esports betting
- Verify the operator’s license in your jurisdiction (for example, via the UKGC or MGA public registers).
- Confirm esports markets are permitted where you are (for example, Nevada’s esports rule; New Jersey’s approved events list).
- Expect KYC/age checks regardless of payment method.
- If you use crypto, understand that AML/Travel-Rule and sanctions controls apply to exchanges and, increasingly, to operators.
- Prefer regulated, locally licensed sportsbooks over offshore, crypto-only sites that offer no consumer protection.
FAQs
Is crypto betting on esports “legal”?
Legality depends on where you are located and where the operator is licensed. Even when esports betting is legal, some regulators treat crypto as high risk and require enhanced checks or limit how it can be accepted.
Does MiCA make crypto betting legal across the EU?
No. MiCA regulates crypto-asset issuers and service providers; it doesn’t grant gambling licenses. Gambling remains a member-state competence, so operators still need local authorization for sports/esports betting.
Can sportsbooks in Nevada or New Jersey take esports wagers?
Yes—Nevada codifies esports with integrity conditions; New Jersey maintains an approved events catalog that includes esports. Availability varies by event and book.
What extra obligations apply if deposits or withdrawals use crypto?
VASPs and partners must satisfy KYC/AML (FinCEN in the U.S.) and sanctions screening (OFAC), and FATF’s Travel Rule informs cross-border controls.
Editor’s note and safe-betting reminder
This article summarizes official regulator guidance and frameworks at the time of writing. Laws change; always check current rules and only use locally licensed operators.
