I don't think it will illegal.
Betting of your own bitcoin asset is not an illegal,because thats is your own money even it is in digital form,only the things become that illegall if that bitcoin you bet is coming from the other people that been victim of phishing or hacking,and you bet in gambling.definetly gambling is not illegal in my country if you have a permit coming from the government,and you pay taxes properly,but this betting of bitcoin is not illegal if its your currency,and you only do this for recreation and enjoyment for yourself.
I believe this is not about it is our money or not. As a matter of fact, legalities depends on the law and terms of government, not our personal agenda or whatsoever. If the government decided to ban gambling then betting with anything we have is illegal, this includes betting with bitcoin even though the government accept bitcoin. So I guess with bitcoin legality to use inbetting, it should meet two things, gambling being legal and Bitcoin being legal in that country.