Wagering with cryptocurrencies, often called crypto gambling, is shaking up the online gambling sector. The first cryptocurrency, Bitcoin, was launched in 2009, and shortly after that in 2012, the first crypto casino was created. BTC casinos allow players to buy in, wager, and receive their winnings in digital currency, instead of fiat currency. Michael Graw explains that these sites typically offer popular games, and big bonuses and some even allow players to wager anonymously. Because crypto gambling uses virtual currency, it’s innovating the online gambling sector in various ways.
In this article, we’ll look at how crypto gambling is innovating the online gambling industry and why many think innovation is necessary.
The Online Gambling Industry
Online gambling is a booming niche within the gaming industry. Its global market is anticipated to reach $100 billion this year, with predictions that it will continue to grow at a rate of 6.2%. However, players and operators alike have concerns.
One of the main concerns within the online gambling industry is the fairness of platforms and games. Players enjoy wagering, however, if they lose, they never know if the game outcome was fair or not, and with traditional online gambling, there is no real way to check.
Another common concern is about security when paying with fiat money. By nature, fiat money is centralized, and so it is controlled by one authority. When players use fiat currency to wager via online betting sites, some have concerns about their private financial information being stolen or seen by others. While reputable betting sites take serious steps to protect player data, like using Secure Socket Layer technology, some players still have concerns about using traditional payment methods online.
The Rise of Crypto Gambling
Gambling with cryptocurrency solves some of the concerns associated with the traditional online gambling sector and also innovates the online wagering experience in new ways, both for players and operators.
Let’s explore some of the ways that crypto gambling is shaking things up and benefiting the online gambling sector and its players.
- Anonymity and Privacy: Crypto addresses player concerns about privacy when gambling online because crypto allows users to operate using pseudonyms instead of sharing their full names and personal details online. This means that not only can a gamer’s profile be more private, but their financial transactions are also given an extra layer of protection and privacy thanks to cryptocurrency’s pseudonymous nature.
- Transparency: Fair play and transparency have been a concern in the past for players wagering on traditional online casinos, as they never know if the results of a game are fair or not. With cryptocurrency, which operates using blockchain technology, every transaction is recorded on a public ledger that is visible to everyone. That means that most sites offer provably fair play and bettors can review game results to ensure fair and honest play. This is key for both players and operators alike. For players, it builds trust. For operators, it allows them to prove to players that they’re being honest and draws in players who are looking for fair play.
- Global Accessibility: Another way that crypto gambling is shaking up the online gambling industry and innovating the sector is through global accessibility. Because crypto is borderless by nature, it is accessible all over the world. This means that players from any country and region are able to log on to the internet and wager online via international offshore betting sites.
- Lower Transaction Fees: Traditional payment methods used at online casinos like plastic cards and bank transfers can incur hefty transaction fees. Cryptocurrency offers lower transaction fees, which benefit both players and operators. Players end up spending less of their gaming budget on transaction fees and have more to put towards their gaming. Operators’ costs are reduced, which means they can offer more games or better bonuses to players.
- Quick Transfers: Similar to low transactions, crypto also offers quick transaction times on payments. Again, this benefits both operators and players. Players are able to quickly top up their gambling accounts and begin playing straight away. Operators are receiving less critical feedback about lagging payment processing on their sites and are able to facilitate speedy payment processing for players.
- Building Community: Cryptocurrency allows platforms to foster community and offer special incentives to players. Some crypto casinos have issued their own tokens and offer revenue-sharing mechanisms in order to encourage players to actively participate in the future of the platform. When the platform does well, players who own the native tokens are also rewarded as their coins go up in value as well.
For all of these reasons and more, cryptocurrency is changing, and innovating, the online gambling sector. Many players are shifting from using traditional online sites to crypto casinos in order to take advantage of the many benefits that wagering with crypto offers players.
Challenges and Considerations
While cryptocurrency is changing the online gambling industry in a big way, there are some challenges that digital currency needs to overcome.
- Regulatory Uncertainty: The regulations around using cryptocurrency vary from place to place, and are quickly changing as crypto becomes more popular. Some places have very strict regulations, while others have embraced crypto completely. Because cryptocurrency was only created in 2009, with the first crypto casino opening in 2012, governments are still working hard to put regulations in place.
- Volatility and Risk: Cryptocurrency is known to be a volatile asset. Its value can move up and down very quickly with little notice, and investors and players alike should keep this in mind.
After Bitcoin launched in 2009, cryptocurrency was quickly adopted by the online gambling industry. Today, there are more than 29,000 digital coins available for investors and players to choose from. Cryptocurrency is already a popular choice for bettors, and as its adoption continues to grow, the ways it is innovating and changing the online gambling sector will also continue to grow and change. For now, we’ve seen betting sites start to accept crypto payments and with it, changes like faster transactions, reduced fees, increased privacy, and provably fair gaming.
