New world record Mega Moolah jackpot is worth a lot of bitcoin
Friday, 28 September 2018, etched forever in internet gambling history, was one of those days that explains why those of us behind the MegaMoolah.com website do what we do.
The Mega Moolah progressive jackpot paid out a new world record on that day: a cool €18,910,668.01. That is a lot of moolah.
For the purposes of this post, we are going to talk about the record jackpot in terms of bitcoin. Why? Because online casinos tend to report jackpot winnings in whatever fiat currency dominates the country in which they are located. Bitcoin is almost never represented because it is a decentralized digital currency not tied to any particular country.
So how much was Friday's jackpot in bitcoin? Assuming the price of bitcoin at the time of this writing - 1 BTC at around €5,670.80 - last Friday's jackpot was worth 3335 BTC. That may seem like a relatively small number but remember that you're dealing with exchange rates. The fact that a single BTC coin is worth more than 5,000 times a single euro means something.
Bitcoin is fungible
The exchange rate between BTC and euros leads to talking about one of the key properties of cryptocurrency: fungibility. Bitcoin is considered fungible inasmuch as its value does not change regardless of the form it takes. In other words, one BTC coin has the exact same value as any other regardless of who possesses it, where it is stored, or any other factor.
The winner of the recent Mega Moolah jackpot is now more wealthy than most other people in the world simply because he or she has all that money to play with. But if that money were converted from euros into BTC, his or her coins would be no more or less valuable than anyone else's.
This is advantageous in that it makes for a level playing field among bitcoin traders. For the person who won the Mega Moolah jackpot, owning more than 3,300 BTC would represent quite a bit of buying power. But there is also something else to consider: that jackpot could be converted to BTC and then to USD for a greater fiat currency value.
What to do with that kind of money?
It is fascinating to think about all the possibilities of accepting such a large Mega Moolah jackpot as a single bitcoin payment. The fungible nature of bitcoin just makes for so many possibilities. But practically speaking, what is a person to do with that kind of money? What would you do if you won a Mega Moolah jackpot in excess of 3,300 BTC?
The answers are as varied as the people who play Mega Moolah. We suspect a lot of people would stop working right away. After all, who needs all the pressures and headaches of holding down a full-time job when you've now got more than enough to live on for the rest of your life?
On the other hand, there are plenty of stories of people who win substantial amounts of money and yet continue to work. They do so because they enjoy their jobs. Or perhaps they continue working because they know they need to stay busy to maintain their sanity. More importantly are the choices pertaining to how the money will be spent.
We can think of a few options:
One of the best things about winning so much money is that it allows the winner to do all sorts of things that were never before possible. Funding all the possibilities without running out of money requires investment. Here's where Bitcoin comes into play.
Bitcoin is treated as a security in most countries. In other words, you invest in it just like you would stocks and bonds. So winning a Mega Moolah jackpot in excess of 3,300 BTC would give the winner an opportunity to maintain some of his or her winnings as bitcoin for investment purposes.
It wouldn't be wise to take the entire jackpot as bitcoin given the volatility of the currency. But let's say the winner converted 10% to bitcoin and another 10% to other, more stable investments. The combined 20% could be encouraged to grow with sound investments, generating consistent returns that could be used to accomplish the winner's goals.
We have read stories of past Mega Moolah winners who have used some of their winnings to conduct charity work. Such winners cannot be commended enough. It is nice to be sitting on 3,300 BTC in the knowledge that you will never have to work again, but there are other people who could genuinely use some help.
We are all familiar with the phrase that says, 'it's better to give than receive'. Being able to give away some of a huge progressive jackpot should be thought of as an opportunity for which the winner is grateful. Giving away wealth is something that a lot of people just cannot do.
Starting a business
There have been other Mega Moolah jackpot winners who have gone on to use their winnings to start a new business. The new business affords them the opportunity to use what they have won to create something stable, something they can pass on to future generations. But it also does things for complete strangers.
Starting new business makes jobs available to other people. It offers a genuine means of generating income to meet the needs of the worker's family. It contributes to the local economy as well, adding strength that benefits the entire community. And of course, a well-developed business idea identifies a need and meets it.
Bitcoin winnings and taxes
If you were to win a 3,300 BTC Mega Moolah jackpot, the tax issue would have to be considered. Let's say you were a big winner in the UK. The UK does not tax gambling winnings, so you could take your winnings in BTC or fiat currency without any taxes due. However, taking your winnings in bitcoin could mean taxes down the road.
Making money on your winnings as a result of the value of bitcoin increasing could make you liable for capital gains taxes. That's why it may not be wise to keep all your winnings as BTC. Keep some as BTC and convert the remainder to British sterling or another fiat currency.
If you were to win a BTC jackpot in the U.S., things would be entirely different. You would have to report your winnings on your annual tax return and pay income taxes on those winnings. The same capital gains taxes would be applicable if the value of your total Bitcoin holdings increased as a result of the price of the cryptocurrency going up.
All that is to say that winning a Mega Moolah jackpot always comes with tax considerations included. You have to figure out what the tax implications are in your nation of residence. The last thing you would want to do is face charges of tax avoidance because you did not pay what you owed on your winnings.
There's always the option to move to a tax haven in the Caribbean...
Winning a bitcoin jackpot
By now you might be dreaming of what it might like to win such a large Mega Moolah jackpot. You might be wondering how you can actually play the game with bitcoin. We will take the time to explain it as we close out this post. Please note that the rest of the information you read is purposely general in nature. Every online gambling site does things differently, so there is no way for us to describe playing with Bitcoin that would apply in every single online casino.
The first thing to note is that the company behind Mega Moolah, Microgaming, is not on board with bitcoin. Most of the casinos that have been offering bitcoin play for Mega Moolah over the last year or two have been employing a workaround method.
A player would make a deposit using bitcoin and then play his or her favorite games - including Mega Moolah. For its part, the casino would contribute to the Mega Moolah progressive jackpot via a conversion from bitcoin to fiat currency. Should a player on that site actually win the jackpot, it would be paid out in the same fiat currency. The player would have to convert it to BTC if so desired.
There is one pure Bitcoin Casino that is licensed to carry Microgaming titles including Mega Moolah and accepts bitcoin straight up as the only currency. Learn more about this casino and the available offers.
So there you have it. Mega Moolah has just paid out its largest progressive jackpot ever. Someone out there is more than 3,300 BTC richer today. While that person is counting his or her newly-found money, other players are already back spinning the Mega Moolah reels in hopes of getting their own shot at the jackpot, which at time of writing is already at €2.5 million and climbing. It is what Mega Moolah is all about!
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.