BlogJun, 2021

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Cryptos and Casinos

Cryptocurrency and blockchain technology has pretty much revolutionized every industry it has touched. From the potential to replace financial instruments in the banking industry to virtual art in the art industry the impacts of blockchain technology will be felt far out. Likewise, blockchain technology is also bringing change in the gambling and casino industry. Why is that you wonder? 

Cryptocurrencies have paved the way for secure online payment options for several businesses, casinos aren’t any different. Most of the customers wanting to access betting sites via their mobile phones prefer the ease of using cryptos for payment. 

Why Cryptos for Casinos?

Cryptos are virtual assets, the lack of physicality doesn’t mean they don’t hold value. The fact the lack of their physicality is what adds to their advantage. 

As the world moves more towards the cashless/paperless route, people want more real-world use cases from cryptos at payment gateways. The casino industry, especially online casinos are becoming more accepting of cryptocurrency for means of transaction. 

Another huge win for crypto in the gambling industry was the transparency of blockchain technology. All transactions are trackable. High volume, high-risk gamblers, poker players, and regular betters who are moving loads of cash to and from would find it easier to work with cryptocurrency as their payout option.

Crypto Wallets for Gambling

Try to carry high volumes of cash around with you, your wallet will become a walking target. No matter how rich you are, you’d be a fool to carry a lot of cash in your pocket. Try to walk around with high volumes of crypto in your pocket and nobody would even know. 

Common sense dictates that you should store your money somewhere, like for fiat currency you have banks, for cryptocurrency one uses what is called a ‘Crypto Wallet’. How do you safely keep something that doesn’t physically exist? 

This is where Crypto Wallets come in. 

Crypto Wallets are a secure, robust piece of blockchain technology that keeps your cryptocurrency safe and under lock. You can use these wallets to send, receive and store multiple coins. The wallets can be of several types, hard, cold, online, offline, paper, web, and more. They aren’t easily hackable, so your funds will be secure. 

Convenience & Complications of Cryptos in Casinos 

The benefits and limitations of using cryptos in the gambling industry are far and wide. To highlight a few here,

Convenience: 

  • Securer: It would be personally easier to transact and ensure winnings in crypto as opposed to carrying and paying in physical cash. 
  • Growth: With high volatility in the crypto market, your winning payout can mean twice the investment within few months
  • Anonymity: Cryptocurrency users don’t have to divulge details 
  • Data Theft Protection: Fewer chances of getting id hacked, online fraud, etc. 
  • No Third-Party Involvement: No intermediary party needed, like banks, funds, etc. 
  • Decentralized Nature: Ensures that no one person controls or can tamper with the data.

Limitations:

  • Hindrance of acceptance: No mass adoption for cryptos as a daily payment option 
  • Money Laundering: With anonymity comes the risk of exposing the casinos to the dark side of crime and money laundering. 

Will Regulation of Cryptos help?

Casinos today are legally bound to ask their players to prove they can fund their high-risk bets. With the option of cryptocurrencies, players can hide behind anonymity making it harder to prove the support of bets. The high volatility of cryptocurrency itself doesn’t help the situation. The popular notion being cryptocurrencies are a gambling addiction themselves. 

The value of cryptocurrencies fluctuates, increasing and decreasing all of the time. Fluctuation creates instability for both the gambler and the casino. Many regard an investment in a cryptocurrency to be a form of gambling in itself, as the odds are similar. 

Casinos transitioning to Cryptos

As the world slowly moves toward the acceptance of cryptos, the question isn’t if cryptos will succeed, the question is when will cryptos succeed? The mainstream effect of cryptos is probably less than a decade away. Industries and companies adopting the transition to blockchain technology will stay ahead of the curve.

Casinos and the gambling industry too can greatly benefit from the adoption of blockchain transition. In pursuit of improved impartiality and transparency of online gambling, Blockchain technology promises positive results and this advantage will prove huge in the future.