Blockchain and online casino symbiosis - a new future for the gambling industry?
The ultra-competitive market environment, the flexibility of solutions, as well as the constant traffic flow have interconnected online gambling and the technology industry. The appearance of a modern digital currency was the following frontier of decentralized gambling platforms. Now cryptocurrency payments are becoming increasingly popular, changing the demand for fiat money. Let's learn how blockchain betting technology is giving power back to the bettors.
As a rule, all the tech innovations appear on the sports bets, casinos, and poker sites and only then become the main functionality in other popular commercial areas. Does blockchain mark the start of another epoch for gambling? Today, online casino games based on this technology generate an income equal to billions of dollars from transactions. This has made many players leave their jobs and invest in crypto casino . And while one of the first popular releases of crypto, called CryptoKitties was launched five years ago, it did not have an immediate flow of capital, it established a point of convergence between gambling and digital currency. The play-to-earn business model is even closer to perfection - it delivers excellent rich graphics, exciting action, and fast gameplay.
Cryptocurrency gambling could lead to a whole universe of betting in which self-regulatory organizations function autonomously, independently, and on an open blockchain. Nevertheless, today’s industry tactics are far from ideal. It has significant downfalls influencing the gambling houses, jurisprudence, and, most significantly, the game participants. Let’s find out how to make a crypto casino and overcome the obstacles of validity, safety, and anonymity.
The legality of using crypto in gambling
High-end regulators frequently try to keep up with the pace of shifts in the crypto casinos and the blockchain industries. Previously, the likelihood of the sector moving to the so-called offshore paradise in Curacao or Malta could be the law limit; today, many countries are already legalizing the business of poker and sports betting. For instance, the government prohibition of sports betting was canceled in 2018, when the United Supreme Court annulled the Professional and Amateur Sports Protection Act (PASPA). Soon, some kinds of earnings were legitimized in 26 more states. Nevertheless, the gambling sector was estimated at $150 billion, and 97% of that amount was an illicit bet.
Because top blockchain casinos offer their clients a competitive market and the government - the possibility to benefit from taxable income, each jurisdiction attempts to discover an ideal soup recipe to guarantee technology and industry development. For instance, Wyoming's law permits gamers to deposit money into their profiles in various digital currencies. To engage the crypto-business in any locality, several bills have been validated reinforcing that legal online poker has a place in markets (e.g., Pennsylvania, Nevada, and New Jersey). Bets between legitimate states also seem actual, as the Department of Justice guidance suggests that card games are liberated from the Wire Act of 1961. Participation is also regulated by law: people under 21 are not admitted to the iGambling. Besides, licensed crypto casino rooms in the U.S. must verify their visitors' identities before enabling them to take part in the game. That's why it's essential for the service provider to exclude the influence of third parties in the personal data processing , to keep the retention period, and to ensure that your business is subject to The Code of Conduct and GDPR.
Legitimate biz has several advantages for operators: unregulated and insecure offshore companies can create unwanted problems, as recently happened with 75-year-old Isai Scheinberg. The Godfather of PokerStars spent a few years living in Canada and on the Isle of Man. But once he was in the U.S., the public prosecutor had accused him of bank fraud , as well as money laundering.
Nevertheless, asking the question is crypto gambling regulated, it is critical to monitor the jurisdiction of each country. Since the industry's activities are within the law, more people are betting more money than ever before. In October 2021, bookmakers made over $400 million of income, according to the AGA .
Also read: How to Start an Online Casino in the UK
Gambling industry decentralization through Blockchain
The traditional model of iGambling is based on the fact that gamers deposit money to make a bet and then withdraw it at the end. Transfers of capital are often costly for service providers, as well as time-consuming for game participants. Vise versa, a decentralized crypto casino model provides another method for connecting cryptocurrency wallets to the platform. The players are given total administration over their funds, making an available withdrawal and deposit operations. Moreover, the new crypto casinos allow their visitors to stay anonymous, asking only for email and name to confirm a transaction without disclosing other personal information. This eliminates the necessity for data processing by third parties, significantly reducing the entrepreneur's cost. The latter can, in turn, compensate for the increased chances of winning by using the digital currency with small commissions. Several blockchain gambling projects offer their visitors actual peer-to-peer transactions where they can bet with one another, with no entrance fee going to the “house.”
And although today's more popular centralized management, perhaps this worthwhile alternative could evolve into a more affordable method of managing a casino. Besides, many gambling suppliers are already concentrated on developing in this direction. For example, FUN Token has launched its online casino announcing the honesty and legitimacy of transactions. Decentralized gambling is legal, allowing it an even greater level of transparency and the absence of involvement of third parties. EarnBet.io has also become a contender for a similar business model, positioning itself as the famous Ethereum blockchain-based casino. Project Moonbet has also become an illustration of a bookmaker that is close to the decentralization values: its community members get constant income, have the right to vote, and are part of SEO traffic generation.
How Blockchain technology is changing the online gambling market
Although blockchain in casino games is not new, and many accept digital currency as a kind of reward, the sector is still developing rapidly regarding personal data privacy, anonymity, and cost-effectiveness. There is certainly increased popularity in blockchain today, especially compared to the rough edges of traditional governance. Nevertheless, it remains unclear how much decentralization will be available shortly and whether it may conquer the market as it once did with digital money and the industry's transition to the online format.
The increased transparency and velocity of transactions available through this alternative management modality allows platforms to benefit - because customers then trust an online casino that applies blockchain technology more and also attracts more transactions, increasing the competitiveness of the biz.
Given the constant growth of currencies such as Bitcoin and Ethereum that constantly surpass their record highs, it is virtually impossible to exclude the rapid growth of the blockchain casino industry. Nevertheless, the indeterminacy of the rate makes people intrigued by the fact that more and more crypto wallets are created daily. In 2021, we were faced with excessive speculation on NFT and P2E. At some point, people will lose interest in them, but the cost of cryptocurrency will keep on growing. Thus, implementing the technology on the iGaming site is not considered a random shot in the dark but rather a strategy for the near future.
However, the developers of such games also rapidly adapted to reality, especially during the pandemic of Covid-19: Software Development Kits (SDKs) were a good decision that simplified software product development and its further connection with the popular today Web3 system. Thus, blockchain for online gambling is becoming more accessible as well as profitable for entrepreneurs because it allows them to produce a powerful software environment in the market quickly and receive a more significant fee from all internal transactions.
Also read: Key Strategies for Successful Online Gambling Business Promotion
As workers around the world redefine the meaning of work in their lives, we will see a pull toward more affordable and immediate earnings. But such trends have several pain points related to anonymity, safety, and access to third-party data. This situation is forcing entrepreneurs to focus on more flexible solutions in terms of jurisprudence and engineering. Blockchain technology adoption in online gambling has become a kind of breakthrough as well as is now increasingly conquering the market. The “Know Your Customer” (KYC) principle has become more critical than ever because by decentralizing their businesses, entrepreneurs come to a more user-friendly platform. Fast transactions and the ability to immediately withdraw your money were the best solutions to customer pain points.