Betting on U.S. elections is illegal. But according to Brett Arends, a columnist for MarkeWatch, there isn’t much the government can do to stop you from betting with bitcoins. For one thing, bets can be made anonymously on offshore gambling sites. For another, bitcoins are considered property by the Internal Revenue Service, so gambling with bitcoins is like gambling with jelly beans.
Arends described how he recently bet on presidential candidate Rand Paul in Monday’s Iowa caucuses.
Betting With Bitcoins Is Easy
Last week, he placed a bet using bitcoins in downtown Boston’s Chinatown. He bought a bitcoin voucher from LibertyX, a bitcoin seller, then deposited the bitcoins into a bitcoin wallet and transferred them to a bitcoin bookmaker. He received 40/1 odds on Paul winning.
Betting on a U.S. election is illegal because the government believes it would impact the political process.
When the Internet came on the scene, people were able to bet on elections by placing bets online with offshore bookmakers. Congress eventually passed laws against this,