Cryptocurrency and sports betting are two of the most popular markets that have emerged within the past 15 years. Buying digital money, like Bitcoin, or any other cryptocurrency, affords investors a unique purchase opportunity outside of the traditional regulatory framework that governs the United States Dollar (USD) and its purchasing power.
Federal judges overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, allowing state legislators to vote for or against the legalization of sports betting. Over half of the 50 states have now voted for legalized sports betting, which is increasingly done via mobile sports betting apps.
Popular regulated online sportsbook operators include FanDuel and DraftKings. However, neither platform currently allows its customers to bet on sports with cryptocurrency.
DraftKings CEO Jason Robins elaborated on why his company does not feature a cryptocurrency payment method for its registered customers.
“The payment methods we can accept are determined by the individual state regulators and as of now, crypto is not an approved payment type in any of the states where we’re live.”
As a result of these regulations, many sports bettors who have cryptocurrency turn to offshore sportsbooks. This is due to a lack of regulations, which can also lead to security risks without oversight and protection from a state’s governing body.
With Missouri next in line to launch online sports betting on December 1st, 2025, expect similar crypto restrictions on all of the state’s licensed sportsbook operators. New customers can still take advantage of various welcome offers once Missouri sports betting goes live, registering with select promo codes to claim excellent bonus bet rewards.
There is currently one state with legal online sports betting that permits crypto as a valid payment method. Wyoming, the least populated state in the country, recognizes crypto and other digital currencies as an approved payment method.
In Colorado and Virginia, registered sportsbook customers can deposit with crypto; however, withdrawals into crypto cannot be made. Colorado’s Governor is lenient with crypto policies, which led to him hiring a chief blockchain architect within the state’s government.
A Colorado Division of Gaming spokesperson elaborated on the state’s willingness to accept crypto exclusively as a deposit method.
“The Division is comfortable with deposits of cryptocurrency into the operator’s operating practices as it aligns with the governor’s initiatives, and it was approved after review by the Division that this type of transaction complies with rules and regulations regarding transactions and internal control procedures.”
Blockchain is the lifeblood and unique distinguishing element of all cryptocurrencies. It operates as a decentralized database, storing information that prevents it from being manipulated by scammers and hackers.
Crypto transactions are grouped into blocks. These blocks are linked and form a visible and secure chain. No banks or other third parties need to be involved with regulating these transactions, emphasizing the decentralized aspect that is appealing to many crypto investors.
While sports betting continues to surge in popularity amongst state legislators, primarily due to the tax money it receives from each licensed regulator, cryptocurrency legislation is undoubtedly going to be the next focal point. Whether states vote for or against crypto, just like with sports betting, standing by and watching other states turn a big profit will apply similar pressure.
For now, sports bettors don’t have much ability to lean on crypto as a valid payment method, barring Wyoming. A couple of other states allow crypto as a deposit method, which could quickly snowball into more encompassing legislation as digital money continues to be a popular investment.