Since the introduction of blockchain technology through the emergence of Bitcoin, there have been claims that it has the potential to disrupt many industries. While these claims are often blown out of proportion, they are not unfounded. Blockchain acts as a digital ledger where transactional data can be recorded. This data is immutable and is difficult to falsify since the system has airtight mechanisms for recording only valid transactions. A technology like this has monumental applications in many industries, from improving simple authentication processes to making supply chains more efficient.
The financial industry has since begun its blockchain revolution, albeit a slow one. However, there are other industries making the most out of blockchain, the gift that keeps on giving. One of these is the gambling industry.
Gambling Industry and Blockchain
From as early as the ’90s, online casinos such as Interstop have been operating fully.
The gambling industry was one of the first to adopt the use of cryptocurrencies, notably for Bitcoin Dice and Bitcoin Slots and has been consistent in the use of technology to push the boundaries of gambling.
Now, in the frenzy of Bitcoin, while the rest of world is still figuring out what to do with cryptocurrencies, the online gambling industry seems to be ahead of everyone. Bitcoin casinos have been emerging since 2010, and have perfected system improvements that optimize the gambling experience for players. These improvements include the addition of features like Provably Fair gaming, and the addition of lightning fast transactions, one of the most popular aspects of digital currencies.
The industry’s adoption of blockchain gambling is justified by the benefits that the technology is providing and can provide in the future. In traditional gambling, players are plagued by insecurity, a lack of transparency, as well as slow and expensive financial transactions. Blockchain technology is set to address and tackle these issues.
Data protection, inclusivity, better opportunities, game variety, and innovative concepts that ensure that players return are just a few of the benefits that blockchain gambling brings to the table. While many countries do not accept Bitcoin gambling as a legitimate form of gambling, some countries do. For example, Malta is legitimizing the use of Bitcoin in its online casinos. Curacao has also issued gaming licenses to several Bitcoin casinos.
The Appeal of Bitcoin Gambling
The gambling industry has come a long way since Bitcoin casinos first began to pop-up. These platforms have grown larger while accepting new customers every day, using attractive game offering, including Bitcoin Plinko. Although Bitcoin most certainly has its flaws, they hardly come into play when gambling is on the line. On the contrary, it makes gambling a far better experience than fiat currency has managed to do, and here’s how:
With regards to gambling, it’s difficult to imagine anything more annoying than slow transactions, especially since it involves so many instances of money being deposited and withdrawn. Player experience is greatly affected by those few extra minutes that it takes players to make deposits and receive withdrawn funds, especially in fast-paced games like Bitcoin slots. With fiat currency, players likely have to wait for more than four days for a check to clear. This is not ideal and blockchain technology ensures that users have access to faster transactions. Using Bitcoin, Ripple, or other digital currencies, transactions now happen instantly and casinos are using this as a way to attract new users to their platforms.
Bitcoin allows players to use online gambling without additional scrutiny in their finances. In fact, due to the regulatory nature of cryptocurrency, Bitcoin casinos are exempt from most of the laws that traditional casinos are governed by. Users can also escape tax commitments, so it's not uncommon to see a seasoned gambler diverting to Bitcoin casinos because of the favorable regulations. This does not mean that these casinos are not licensed under any law. A good number of them are licensed under the Curacao government and adhere to some of the strictest standards.
While transaction fees always seem negligible compared to the amount being transferred by players, they can make a huge difference, when accumulated over time. Online casinos often have relatively large transaction fees, for almost every transaction. Bitcoin casinos, on the other hand, mostly offer free transactions. Players are only expected to pay the normal mining fees for the transaction, which the casino does not benefit from.
With the many bonuses and promotions offered by Bitcoin casinos, paying mining fees does not seem like much of a problem. Apart from the issues faced with ordinary transaction fees, some players have to pay even more exorbitant fees, just to convert from one currency to another. On the other hand, cryptocurrency platforms act as currency conversion intermediaries, offering fast, seamless, and affordable currency conversion.
A Wide Variety of Games and Bonuses
Many top-rated Bitcoin casinos have a large game selection. There are usually thousands of games to choose from, including different interesting slot machines. One example is FortuneJack, which has over 3000 games, with more than 700,000 BTC wagered on its site since its establishment. Essentially, there is something for everyone, whether a player’s interest lies in poker, blackjack, roulette, slot machines, or even sports betting.
More importantly, these casinos offer attractive bonus packages, Bitcoin slots jackpots, and affiliate programs, and some even provide users with a built-in faucet to earn tokens for performing small tasks. Players will find that Bitcoin casinos are more accommodating to both new and seasoned gamblers.
How Blockchain has Changed Privacy and Accessibility in Gambling
Privacy remains one of the most important issues in online gambling. For many reasons, players are better off when their information is private. Those with huge earnings can easily become targets for cybercriminals, so security systems that mask their information are essential. Unfortunately, traditional casinos use less sophisticated technology than the cryptographic methods used to secure cryptocurrency like Bitcoin.
Since Bitcoin does not require a user’s private information to carry out transactions, the same quality is applied to gambling. Many Bitcoin casinos only require email addresses and pseudonyms during registration, and for some, there is no registration process at all. As a result, people can play games and Bitcoin slots secretly without their transactions ever being traced back to them. This also works because of regulatory differences between these casinos and their fiat counterparts.
Digital currency is also giving players a low barrier of entry. Many casinos that offer cryptocurrency payment methods are accessible to people in different countries. Due to how tightly controlled fiat currency conversion is, it is more convenient for players to stick to local online casinos which accept their currency. The problem with doing this is that it places an unnecessary restriction on such players, especially when their preferred games, such as Bitcoin slots, are not offered by the casino.
For example, welcome bonus packages may not be as great in local casinos as they are on another casino that accepts euros or US dollars. To play a game like Bitcoin slots on those casinos, a user would have to face high conversion fees. With Bitcoin, the starting currency does not matter because it can be exchanged for BTC in a cheap, easy and seamless process. This gives players better opportunities to take advantage of the rich variety of casino bonuses and offers in existence.
Blockchain technology is gradually exposing the vulnerabilities in systems that have long been believed to be efficient. In the online gambling industry, for example, it hasn't been considered abnormal to wait almost a week for a payment to clear. Neither have payment processes seemed non-inclusive since everyone just stuck to casinos in which their currencies were accepted. Blockchain gambling is pushing those things out and making way for better processes. However, it is taking countries a long time to warm up to the gambling applications of this technology. It will be interesting to see what new developments emerge over the next few years.