Crypto casinos as a disruption in the online gaming industry is emerging providing players with decentralized and pseudo anonymity in the gaming activities. Nevertheless such innovation is accompanied by numerous regulatory drawbacks that governments have to cope with when digital currency is used in casino gaming. In this article, we will look at the legal environment in which crypto casinos operate, focusing on the regulatory barriers they encounter and the ways they tackle such difficulties. In response to the growth of cryptocurrency casinos, regulatory bodies worldwide have used different measures to regulate this issue. In many jurisdictions, crypto casinos have been banned or limited in their operations for the reasons of consumer protection as well as financial stability. Instead, others have chosen a hybrid strategy, which aims at a synergy between innovation and regulation. Such countries for instance have crafted licensing regimes exclusively meant for crypto-gaming operators. Most of these licenses are accompanied by strict requirements with regards to AML and CTF measures and safe casino gaming norms. That is why the cryptocurrency casinos are treated the same way as the traditional gaming corporations do by the regulators as they want to limit the risks of using anonymous transactions without keeping the gaming environment free of transparency. Even with the efforts to control the crypto casinos, the regulatory uncertainty continues to be a major challenge which both the operators and players face. As technology of cryptocurrency is evolving every day and regulators are unable to reach a consensus, the regulatory environment is complex and dynamic. To overcome this doubt, cryptocurrency casinos need to be proactive with their compliance strategies. This includes monitoring regulatory changes in the jurisdictions in which they operate, and establishing robust AML and CFT procedures and engaging with regulators on any issues that may arise. In addition, some operators apply for operating licenses granted by reputable jurisdictions having clear rules for regulation, which provides them with some degree of legitimacy and credibility. Cryptocurrencies in online casinos stand out as a new and disruptive phenomenon in the gaming industry, since they give players a level of privacy and independence that nobody has ever enjoyed before. While a lot of regulatory challenges are coming, as governments struggle to deal with cryptocurrencies implications in the context of casino gaming. Through knowledge and management of these difficulties, cryptocurrency casinos can succeed in the legal proceedings and create a secure and responsible gaming environment for players globally.