Bitcoin Gambling Expansion?

[Korbman]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

[niko]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

The U.S. government went really harsh after online gambling businesses 5-10 years ago; I am somewhat concerned that Bitcoin in general may end up taking heavy beating ("we don't do body counts" is the stated U.S. government approach to pursuing their agenda).

This is where Bitcoin Foundation and vanilla businesses come in - educating the public, the law enforcement, and the representatives about all the facets of this wonderful technology.

[Korbman]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

The U.S. government went really harsh after online gambling businesses 5-10 years ago; I am somewhat concerned that Bitcoin in general may end up taking heavy beating ("we don't do body counts" is the stated U.S. government approach to pursuing their agenda).

This is where Bitcoin Foundation and vanilla businesses come in - educating the public, the law enforcement, and the representatives about all the facets of this wonderful technology.

Exactly my thoughts as well given the ferocity of the 2006 law banning the online gambling. Though I'm sure Bitcoin will once again be cast in a negative light in this scenario, it will also have a chance to show how awesome it is to the public in other areas.

I suppose as long as it keeps getting out to the public that Bitcoin can be taken seriously...

[Stephen Gornick]

Another thread on the article in the Press board:

2013-01-03 businessweek.com - Bitcoin: Making Online Gambling Legal in the U.S.?
 - http://bitcointalk.org/index.php?topic=134575.0

And the two other echo chamber articles:
 - http://bitcointalk.org/index.php?topic=134754.0 (the Ars Technical article mentioned in this thread.)
 - http://bitcointalk.org/index.php?topic=134753.0 (theVerge.com)

[Stephen Gornick]

I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

Those that are breaking even or winning aren't necessarily all in a rush to cash out their coins.  So after playing, those funds remain in bitcoin instead of at the exchanges looking for buyers.  This creates a fantastic opportunity for bitcoin as now the currency is distributed wider and merchants others than just those who offer more than Anonymous VPN and GPU cards will start to see more bitcoin-related commerce.

Also, for those who have won big generally bet big, meaning they might be interested in buying the higher end goods and services that bitcoin has not yet seen much demand (e.g., travel-related like perhaps hotel, and airfare) or the funds might start being used to speculate and invest (in options, futures or forex -- all of which now can be funded using bitcoins).

What none of these articles mentioned is how the many of the winnings are likely not going to be reported as income for tax purposes.  So not only are some of these Bitcoin online wagering services offer something not available in Vegas or nearly anywhere else ("provable fair") and not only do they offer higher odds of winning (house edge with SatoshiDICE is less than 2%, whereas Vegas is four percent, and sometimes 8% even -- they offer user-definable anonymity for the payouts.

The casino gaming and online gaming industry is so large that even if the bitcoin-based wagering only captured a tiny fraction of that it would provide some decent lift in the bitcoin exchange rate.

[furrycoat]

In a way I hope Bitcoin isnt used more in gambling websites. It already has a bad rep as it is, (drugs, money laundering, etc) more criminal activity and people will start looking at Bitcoin as a currency for criminals.

[fcmatt]

In a way I hope Bitcoin isnt used more in gambling websites. It already has a bad rep as it is, (drugs, money laundering, etc) more criminal activity and people will start looking at Bitcoin as a currency for criminals.

+1

Also the amount of people involved with bitcoins who have turned out to be scumbags is depressing. The path of more quasi illegal biz using bitcoin is a short term gain, possible long term black eye. I would not be sad if all bitcoin gambling disappeared overnight. Nothing of value would be lost.

[fcmatt]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

There won't be any price ups for as long as the one or ones dumping thousands of bitcoins on market once per week stop doing so.

So in other words the gambling websites sucking usd from the chumps....
You dont think they created bitcoin gambling sites to just keep the bitcoins? Lol at the thought.

[furrycoat]

I wonder how much of the value in a bitcoin at the moment is due to it being the accepted chip at the worlds biggest dice game.

What is this gambling site called? Wouldnt mind checking it out.

[nobbynobbynoob]

SatoshiDICE presumably.

[Mike Hearn]

Online gambling isn't illegal in many parts of the world. As far as I know that's primarily a USA and China thing.

[evoorhees]

In a way I hope Bitcoin isnt used more in gambling websites. It already has a bad rep as it is, (drugs, money laundering, etc) more criminal activity and people will start looking at Bitcoin as a currency for criminals.

+1

Also the amount of people involved with bitcoins who have turned out to be scumbags is depressing. The path of more quasi illegal biz using bitcoin is a short term gain, possible long term black eye. I would not be sad if all bitcoin gambling disappeared overnight. Nothing of value would be lost.

I've found that most Bitcoiners are wonderful, inspiring people. It would be silly though to expect that no scumbags would exist within this movement. Fortunately, they get weeded out over time, and the reputations of the legitimate people and businesses establish themselves. This process takes time.

[evoorhees]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

There won't be any price ups for as long as the one or ones dumping thousands of bitcoins on market once per week stop doing so.

So in other words the gambling websites sucking usd from the chumps....
You dont think they created bitcoin gambling sites to just keep the bitcoins? Lol at the thought.

 You might find that some people actually believe in Bitcoin as a superior asset to paper.

[FreeMoney]

Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?

There won't be any price ups for as long as the one or ones dumping thousands of bitcoins on market once per week stop doing so.

So in other words the gambling websites sucking usd from the chumps....
You dont think they created bitcoin gambling sites to just keep the bitcoins? Lol at the thought.

That is why I created a bitcoin gambling site. So lol away at reality too I guess.

[fcmatt]

So i am to believe every bit of bitcoin profit.. None was sold to get a countries currency? Really? Pfft. I have a bridge to sell. Brb.

[evoorhees]

So i am to believe every bit of bitcoin profit.. None was sold to get a countries currency? Really? Pfft. I have a bridge to sell. Brb.

No you should not believe that. Of course some profit is sold for fiat currency. What's your point? The important thing here is that some profit is NOT sold for fiat. That's is the phenomenon you should ponder about for a while...

[FreeMoney]

So i am to believe every bit of bitcoin profit.. None was sold to get a countries currency? Really? Pfft. I have a bridge to sell. Brb.

I specifically didn't say that. What I said was that I created the site in order to get bitcoins. gl w/ the bridge.

[creativex]

Online gambling is not illegal in the US. The Unlawful Internet Gambling Enforcement Act of 2006 outlawed the funding of online gambling sites.

[fcmatt]

So i am to believe every bit of bitcoin profit.. None was sold to get a countries currency? Really? Pfft. I have a bridge to sell. Brb.

No you should not believe that. Of course some profit is sold for fiat currency. What's your point? The important thing here is that some profit is NOT sold for fiat. That's is the phenomenon you should ponder about for a while...

Correct me if I am wrong but the way SD is designed one has to have a large pool of btc to make sure you do  not
go broke from an amazing lucky streak by users. So sure.. one would want to save a large pool of btc for that occasion.
Is that most of the btc you are referring to?

Anyway.. my point was that gambling sites as a whole do not just collect btc and put them in long term storage.
They just recycle most of them for currency and will not be a huge factor in raising the price of bitcoin long term.
To expect every gambling site operator going forward to be a bitcoin evangelist is highly unlikely and they will
want the "finer things in life" if they succeed. That means selling bitcoins.

[mccorvic]

So i am to believe every bit of bitcoin profit.. None was sold to get a countries currency? Really? Pfft. I have a bridge to sell. Brb.

No you should not believe that. Of course some profit is sold for fiat currency. What's your point? The important thing here is that some profit is NOT sold for fiat. That's is the phenomenon you should ponder about for a while...

Correct me if I am wrong but the way SD is designed one has to have a large pool of btc to make sure you do  not
go broke from an amazing lucky streak by users. So sure.. one would want to save a large pool of btc for that occasion.
Is that most of the btc you are referring to?

Anyway.. my point was that gambling sites as a whole do not just collect btc and put them in long term storage.
They just recycle most of them for currency and will not be a huge factor in raising the price of bitcoin long term.
To expect every gambling site operator going forward to be a bitcoin evangelist is highly unlikely and they will
want the "finer things in life" if they succeed. That means selling bitcoins.

Don't forget about the impact velocity has on prices as well.  Even if gamblers keep a single BTC in "circulation" for 5mins at a time between fiat purchase to fiat sell but there are 20million people doing it at a time this will cause prices to go up.