Why do people turn to cryptocurrencies in the first place? Well, we can all agree that folks who like cryptocurrencies somewhat also like decentralization, additional layers of privacy and anonymity in general. They love that modern form of payment not only because it’s “an online-thing”, meaning digital and fast but also because it can be seen as much safer than having a bunch of cash stacked under your pillow.
So, that leads to the assumption that the crypto community might also be likely to appreciate and often use a technology called VPN, which stands for virtual private network.
This guide will help you understand what VPNs are and the risks associated with their usage for gambling online with crypto.
What are VPNs and How Do They Work?
It’s a system that adds an overlay network to the actual one - which a lot of times can be public - and with that it turns it into a ‘private’ network. One could also casually and very simplified say: a VPN is a network within a network.
Another big term to use here is ‘encryption’. A VPN encrypts the network traffic and makes it more secure and anonymous.
Last but not least a VPN creates a different IP address and with that it simulates coming from a different server. This can of course just be in the same region, state or country but it can also simulate coming from entirely different countries and regions all around the world. Your device is physically in the United States but you let the VPN create an IP address that shows it’s coming from a server in Germany. Making whatever system or individual believe your device is actually physically in Germany.
The VPN boom - nothing goes without it anymore?
The VPN boom is massive and major brands today even advertise on main television news channels, billboards, newspapers and magazines. To a point where your grandma who uses the internet to google a baking recipe once a week asks you to install a VPN software for her because she doesn’t feel safe anymore.
Yes, everybody needs a VPN tool today or they are totally backwards, not safe and fully exposed to hackers and any other malicious intent that happens on the internet.
At least that’s what these companies want you to believe through their ad campaigns.
The reality is - you guessed it - way more relaxed than that:
If you have a secured wifi-network, you are using a regular known internet browser and only access pages using a HTTPS (hyper text transfer protocol SECURE) - which naturally/automatically comes with an encrypted and secure connection you don’t need a VPN software. A secure protocol can also easily be identified by that little padlock your browser might show you next to the internet address.
But Why Do People Use VPNs?
A VPN can be really beneficial for a couple of reasons:
Online-safety: Protecting yourself by hiding the IP-address, especially in public places. An airport or hotel wifi probably isn’t as safe as your wifi at home and data can easily be leaked and stolen. So, you shouldn’t do transactions via public networks unless you add another layer of security where a VPN for example comes to play.
Geo restrictions: A lot of people use VPNs specifically while traveling - to be able to still access content like entertainment (streaming platforms like Netflix). Those tend to have different content in different countries, meaning Netflix USA displays different movies and shows than Netflix France. Another purpose that’s been rising in popularity (especially through influencers and social media) is to trick the network into thinking you purchase a product or service from a different country. This can be a great way of saving money on e.g. flights, hotel rooms or car rentals but also software or streaming subscriptions.
Hide online activity: To simply hide your browsing history and online activities from your internet provider or companies who may try to build a profile based on your IP address. This also means avoiding targeted ads and spam based on your data history.
Online Gambling and Gaming:Lastly a reason that is popular in the gambling and and online casino scene: To use a VPN to avoid ISP speed throttling. ISP stands for Internet Service Provider and these can deliberately decide to slow down your connection to avoid network congestion and whenever they think that you’re taking up too much bandwidth.
But this is somewhat a double edged sword: a VPN can at the same time lead to performance issues on your end and leading to a longer loading time for content. You would very likely need a premium subscription at a top notch VPN provider to not run into this problem.
What Are the Risks of Using VPNs?
As with any other (modern) technology or system: Be aware that it’s not the ultimate solution, not your golden ticket to all your security problems and privacy concerns. It also won’t outsmart all other technologies, tools or products it aims at.
To put it simply: It won’t put you into “god-mode” online.
Whenever an entity related to the world wide web (anything from internet providers, to companies that track you, to official governmental organs) lose influence, money and overall control they will improve their own methods and tools. Just like Google had to improve its own AI software with the rise of ChatGPT to keep its power, influence and on top of the market.
More and more people use VPNs for the aforementioned reasons but at the same time the detection and tracing improves. New protocols and scanning methods aim at exactly that: To detect the use of a VPN. And those tools are of course already in practice to protect and benefit large companies and legal authorities.
But you don’t even have to think that big: Even a small website or single internet user can use a vpn detection software to “fight back” the VPN and block that traffic.
VPNs Don’t Make Blocked Online Content Legal
Now that being said - you guessed it - it can also be used for a lot of different illegal reasons and to disguise criminal activity online. A VPN can make it easier to access content you shouldn’t be accessing and to bypass all kinds of censorship.
Online gambling isn’t allowed everywhere in the world and therefore online casinos aren’t accessible in a lot of countries and even states in the US.
If you can’t access a certain domain because it provides content that is banned in that region a VPN might make that content visible but it is still not legal to view that page or engage with its content.
So, let’s say you use a VPN to gain access to an online casino which is banned in your region, you still aren’t gambling legally! And that money you seemingly won has never been yours and goes up in smoke the second the casino site, state or country detects your VPN usage.
Crypto and VPN—A Match Made in Heaven?
While the crypto community really supports using VPNs to keep their wallet and transactions safer from potential hackers or malicious software, be careful when it comes to crypto casinos!
So, as much as using a VPN is encouraged in the crypto world to decentralize and privatise your online activities,, using it for a crypto casino can have the opposite effect and not save your money and crypto assets but make you lose it. It also can lead to getting banned from those pages because you didn’t play by the rules.
Why Online Casinos Prohibit Using VPNs
Well, firstly they have to protect themselves and play by the rules of the regional regulatory bodies and authorities. SO, they have to make sure the player complies to the geolocation that is being transmitted. That's why most licensed crypto casinos, just like regular online casinos, don't accept VPNs and will potentially use an advanced tracking tool to detect gamblers who try to use VPNs. One way that works is that the protocol can show them that there are multiple connections coming from the same IP-address. Depending on how big and professional the casino site is it won’t even let you access their landing page if you have your VPN enabled.
The idea is very similar to the idea of KYP and KYC (Know Your Partner/Product and Know Your Customer). This term describes the verification process of an online casino.
While people like to stay anonymous for a lot of their online activities - which is why a lot of players prefer online casinos over physical/ in-person casinos in the first place - it doesn’t mean you don’t have to show your identity to the casino (site) itself to make sure you’re a real person and legally allowed to play (at that casino).
And obviously, when the site already used KYC verification for a player when creating a profile and onboarding, they can easily check where your connection “should” be coming from.
A lot of crypto enthusiasts would argue that the whole KYP/KYC system defeats the purpose of decentralization and the whole idea of blockchain technology but a casino is in the end still a financial institution that has to obey laws of the authority and jurisdiction - and those can of course differ by country or state.
Some might then also argue that a crypto casino which doesn’t accept VPNs isn’t for them but as mentioned above and in other articles, there is more to the picture. The casinos have to protect themselves, too, by complying with their licensing authorities policies and regulations. A VPN can make that harder if not impossible for them.
A big NO for professional online crypto casinos for letting players use a VPN - and a very ethical reason - is to get around self-exclusion. Most licensed online casinos have a self exclusion policy which is crucial to fight gambling addiction. If a player decides they have a problem, they can decide to self exclude them for a desired time. When gambling stops being entertainment, stops being fun and when it’s used in a way to solve financial problems, a player should let the casino know to minimize personal harm and prevent further damage.
If players download VPN tools, to change their IP address and with that the personal information that’s being transmitted, they can get around the limit they just set themselves and cause more damage by being able to still play. And again, most casinos that have a KYP and KYC policy in effect can’t allow a VPN for that reason anyways.
If you self-excluded yourself from a casino down the street you wouldn't be able to enter by wearing a ski mask because they would want to see your ID and face.
Online casinos also use VPN detection to minimize the risk that VPNs are used to exploit their promotional offers, such as one player using multiple accounts.
Last but not least, they simply try to protect you and other players from fraud and hacking. VPNs can be used for hijacking accounts or simply cheating. We all want the game to be fair and the player environment to be safe.
What Happens If I Just Use The Trial and Error Strategy?
Enabling your VPN and just trying out if the access works is definitely not recommended as you might get permanently banned from that website, red flagged within the larger crypto gambling network/ community and in serious cases (multiple attempts, ignoring all warnings) even enforcement authorities could be informed.
If it happens that you forgot to turn your VPN app or extension off and you try to access a crypto casino site that doesn’t accept that technology it’ll let you know by displaying a message like “All proxies must be turned off on your computer before you access this site.” This sure isn’t the end of the world - but again: don’t push your luck on purpose.
How do I know? Are There VPN Friendly Crypto Casinos?
The first thing you can do is to read the casino’s Terms of Service or Terms and Conditions. Ask what’s their policy on VPNs? If you can’t find anything on that, don’t just assume you’ll be safe to use it.
And yes, there are some websites that specifically advertise with that fact but be careful as that can already be a red flag. Just like with No-KYC/KYP casinos, those raise the question if they are trustworthy. Are they just trying to lure you in with too good to be true-promises? What’s in it for them? Another tip: Ask around in casino communities on Reddit, X (former twitter) or Discord. This is always a great way of proving trustworthiness.
The Potential Risks of These Casinos
The worst case scenario for you as a player is being able to play as anonymously as possible but losing your stack in the end or simply not being able to withdraw your funds because those were won while using a VPN.
Another tricky way of thinking about that scenario is:
The casino might say they accept or even encourage use of the technology but what if that gets the player in legal trouble with the enforcement authorities. You might get exactly the gambling experience with all the layers of anonymity you were looking for AND even the casino is happy with that BUT you still violate geo restrictions and general gambling laws.
But nevertheless: as online gambling becomes more and more popular, laws around the world are also getting more strict. A lot of online casinos were simply not creating that much attention so, they were sort of flying under the radar of the authorities.
Now that the spotlight is on them because traffic increases- especially with the rise of crypto casinos which bring in a high number of new gamblers- authorities act and ultimately limit access or generally add more rules and regulations.
Long time online gamblers are facing the problem that they can’t access the games and features they could in the past and now even these players are considering using VPN services to get their old features back.
As mentioned above, ISP (Internet Service Provider) speed throttling becomes a factor when there is high traffic and certain sites (in our case online casinos) take up a lot of bandwidth. So, providers might slow them down on purpose which will lead to a poor user experience on these gambling sites.That could be another potential reason these casinos encourage you to use VPN services, to not be slowed down and with that create a bad user experience and lose customers.
What to Check When Using VPNs
Do your research first and follow this quick check-list before you act:
Check VPN compliance of the online casino platform, to be found in rules and regulations
Look up the local laws for the region you are playing from
Inform yourself about the legal framework that online casino choses to operate in, meaning also their location
The existing laws regarding crypto, online casinos and VPN usage are complex. And a lot of the rules and regulations of (individual) online crypto casinos aren’t fully defined yet. The same is to say about legal authorities and enforcement regarding AML (Anti Money Laundering) in the field of KYC (Know your Customer) and KYP (Know your Product/Partner) which directly touches the field of VPN. There are laws that have been presented but have not been passed yet. If the KYC and KYP landscape changes drastically it will directly affect the VPN casino landscape.
So, there is still a large grey area where one rule, tool or system tries to outsmart the other. We will update our content according to that and make sure you stay informed on the highest possible level regarding the use of VPN for crypto online casinos.
What Types of VPN Services Are There?
A lot of people obviously first want to try out a VPN service and will look for a free version. And there are tons of free VPN apps for your phone and extensions for your browsers. And as more and more people use it, more VPN companies and sites appear. That also means more and more sketchy tools and scammers show up. Everybody wants to hop on the VPN train.
1. Entirely free VPN services: Hundreds of apps and softwares seem to be free and are advertised as giving you anything you want from a VPN. Beware, a large amount of those are trying to scam you, because what's in it for them? They either spam you with ads after you register, they steal your information and data or they end up not being free at all and want you to pay at a certain point.
2. Free VPN trials: A lot of the bigger names have free trials they offer, letting you try out the VPN service for a certain amount of time (usually 1-2 weeks) and if you don’t cancel within that time frame you’ll at least have to pay for a full month. Sometimes these trials offer all the functions and features and sometimes they only give you the main features.
3. Free version of a paid VPN: Also some of the bigger VPN software companies offer an entirely free version that e.g. has half the features as their paid one. They’ll also remind you to upgrade on a frequent basis and they come with “annoying” downsides like a required refresh rate every 15 minutes. Meaning you get kicked out of your virtual private network and have to do a browser refresh connecting to a (new) VPN (and a simulated region/country you want your IP address coming from) via the app or extension again. Sometimes you have to even log onto the app with your credentials again.
NOTE - That can be dangerous if you’re for example winning/ making (virtual) money in an online casino game and then get kicked out of the game by your VPN. The winning might be gone. This way you’ll also simply get exposed using a VPN service which may lead to a ban or other penalties at the online casino. Again maybe you weren’t even legally allowed to play at that page in the first place. An even harder scenario is, assuming you’re trading crypto or buying assets at the casino and then lose connection to the server. Your money might be gone.
4. A paid VPN subscription: This is what a lot of people that use VPN softwares frequently end up getting. There is a lot of competition and a large number of companies offering VPN tools with all kinds of different features, with all kinds of different subscription formats and of course in all kinds of price ranges. These will usually not have any deliberate downsides in functionality and handling. But that naturally depends on the provider you decide on and the exact software version of the VPN you subscribe to (beginner, advanced, pro etc.).
Regardless of how professional these VPN providers sound and what they promise to you: from “military proof connections” to "engineered by the world's best software developers” to “FBI level protection” there will always be a way for ruthless hackers and governmental institutions to detect your activities even when using a VPN.
Summary - VPNs and Online Casinos - Key Takeaways:
It is still a developing relationship. VPNs are great for all kinds of security and geolocation related reasons and you should try them out if these sound beneficial to you.
Online casinos - specifically crypto casinos - are the preferred gambling format today and there are thousands of pages dedicated to it. It seems to get more popular every minute and gamblers, whether they play with crypto or not, want to access all these pages, on any device, 24/7 and everywhere in the world.
And now there are even pages with lists, rankings and reviews dedicated to specifically online casinos which accept VPN use.
But as this relationship is still super fresh and not quite proven yet: VPN friendly online casinos really just want to sound like they’re the next big thing, state of the art and better than the existing online casinos:
From super fast sign-ups with NO verification of your identity needed (NO-Know your Player / NO-Know your Customer policy) to the most anonymous gambling experience with ANY crypto currency that exists while being allowed to use ANY VPN service you wish. They promise you FAST money and FAST crypto transfers and even FASTER withdrawals.
Before you jump on any of that, double check all parameters by looking if you are legally allowed to gamble on that site. And if the use of a VPN tool generating an IP-address coming from a different region or country might make your potential wins completely obsolete because they are illegal.
If you use a VPN to access online casinos that you couldn’t access in the first place because of a blocked geo location then be aware that not only that casino can ban you, you might lose all your (crypto) money you used to buy stack and you could commit a crime that potentially is prosecuted by legal authorities.
If you wanna be safe, as of right now treat these two entities ‘VPN’ and ‘Online Casinos’ separately before we know more about how to safely bring them together.