The online casino industry is continuously evolving and adapting to new technologies. Mobile gambling and live dealer games have recently experienced an enormous shift. Currently, cryptocurrencies appear to be the next big thing in online gambling. In simple words, cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions. Since the inception of Bitcoin (which also remains the most popular and the first crypto), the world is becoming more crypto-friendly.
The gambling industry is a prime example of a sector that is realizing the potential of digital currency and is working towards implementing it. Several online casino platforms accept crypto, like the FortuneJack, Bitstarz, and mBit Casino. Among them, FortuneJack was one of the first crypto-casino platforms.
While the crypto adaptation is still in its early days for the online casino industry, we’ll see more and more casinos start to accept this form of payment in the future due to its potential benefits. This article will help you understand how the future of online casinos appears with the onset of cryptocurrency.
How cryptocurrency is changing the casino industry landscape
Cryptocurrency is altering the casino business landscape by allowing users to wager anonymously and giving casinos a new revenue stream. Casino players benefit from the digital financial revolution in a variety of ways.
For starters, it enables individuals to wager anonymously, which is helpful for people who wish to keep their gambling activities discreet. It is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrency is decentralized and not subject to government or financial institution control.
Secondly, cryptocurrency presents a new stream of revenue for casinos. Casinos have typically relied on two revenue streams: gaming and non-gaming (e.g., hotel, dining, and retail). However, with the introduction of cryptocurrencies, casinos now have an additional revenue stream: transaction fees.
Players must pay transaction fees when they deposit or withdraw funds from their casino account. These fees are generally tiny (e.g., 0.1% or less). However, they can build up over time, especially if the player makes multiple daily transactions. The transaction charge concept benefits both the player and the casino. It offers a new source of revenue for the casino that is not reliant on gaming revenue (which can be volatile). It reduces the cost of gambling for the player because they are no longer required to pay gaming taxes.
Other notable benefits of crypto in casino industry
Increased security: Cryptocurrency transactions are incredibly secure because they are decentralized and use blockchain technology. This means that no central point of control can be hacked or manipulated.
Anonymity: Cryptocurrency users can remain anonymous, which benefits players and casinos. Players can gamble without revealing their identity, and casinos can avoid government regulation.
Lower fees: Cryptocurrency transactions have lower costs than traditional methods like credit cards or wire transfers. This saves both casinos and players money.
Instant transactions: With the arrival of Bitcoin, Ether, and other digital assets, no bank needs to wet its beak for you to collect your funds. All transactions take place solely between you and the platform you are utilizing. There is no obstruction to the flow of information when there are no middlemen. Your assets can be withdrawn almost instantly.
What are the challenges of implementing cryptocurrency in casinos?
One of the difficulties with using cryptocurrencies at casinos is that they can be difficult to trace. For example, if a player wins a jackpot, it may be impossible to determine whether the earnings were cashed out in bitcoin or converted back to fiat currency.
Another issue is that several nations prohibit the use of cryptocurrencies for gaming. China, for example, has outlawed all types of cryptocurrency gaming. Chinese casinos cannot accept gamers who wish to gamble with cryptocurrencies.
Finally, one disadvantage of using bitcoin at casinos is that it might be volatile. Because the value of cryptocurrencies such as Bitcoin fluctuates rapidly, the sum a player wins or loses can rapidly fluctuate. This may make it challenging for casinos to handle their finances and may lead to players making a loss if the market of their cryptocurrency falls.
