As blockchain technology and the cryptocurrency market continue to gain momentum after seeing a significant growth in recent years, iGaming is at the top of the increasing options for its application. In a new analytical article, Slotegrator, which has been developing software for the gambling business for more than 10 years, has addressed some of the key issues behind this trend, including the impact of these cryptocurrencies and blockchain technologies on the evolution of the industry, whether these changes are positive or not, and how the industry will develop in the near future.
Compared to fiat currencies, cryptocurrency turnover is still low. However, when the Google trends data for the query “bitcoin casino" is analyzed, a steady growing interest in the topic can be seen, according to the iGaming aggregator, which further identifies a few factors that contribute to the popularization of the iGaming trend.
Blockchain technology provides a high level of encryption. Every transaction is added to the ledger, which is an immutable block of data, and verified by a decentralized blockchain network. Transactions take place directly between crypto-wallets, prohibiting the involvement of a third party, so it minimizes the possibility of fraud and eliminates the need to pay a commission for the transfer.
While national currencies are backed by a state, cryptocurrencies are supported by a decentralized ledger that records every transaction. The ledger is distributed over a large database with a million copies. This has a few consequences: firstly, anyone who has access to the network can verify the transaction; secondly, the history of a bitcoin cannot be faked. Any attempt to falsify a single block will affect every block in the network. The transparency and security of decentralized public records are a huge selling point for many players.
In crypto casinos, blockchain technology is used at the development stage, allowing automated payments using smart contracts. But opening a purely blockchain casino could restrict operators to those games that are also developed on the basis of blockchain technologies. On the other hand, more and more gambling sites are accepting payments in cryptocurrencies alongside existing fiat currencies, which gives them the opportunity to reach a wider audience.
For instance, Slotegrator’s Bitcoin Casino is a new type of gambling platform with integrated cryptocurrencies that guarantee high transaction speed and secure payments.
According to Slotegrator's analysis, there are several reasons why operators are opening crypto casinos — and why players are flocking to them. Operators see the value in crypto casinos because cryptocurrencies are secure, transparent, and popular with their target audience. Players are drawn to crypto casinos by the security and transparency as well, but they also value speed, anonymity, and decentralization.
Furthermore, crypto casinos often feature smart contracts, which automate payments, and provable fairness, which automatically verifies the results of a game. For many players, this definitely creates a heightened sense of trust.
Withdrawal speed is also important for players. Most payment methods involve a third party, like a bank or a payment service provider. This means that when players request a withdrawal, it can take hours or even days. Cryptocurrency withdrawals, however, occur wallet-to-wallet, and sometimes take just minutes to register.
Crypto casinos are still a relatively new phenomenon, so as of yet, there is very little legislation — in any market — that explicitly applies to them.
Gambling regulations usually focus on the following areas:
However, due to the increased anonymity that cryptocurrencies promise (the address of the wallet is stored in the blockchain, but not the name or email address of the holder) governments could potentially see cryptocurrency gambling as an avenue for illicit funding and move to introduce more legislation in the future. However, Slotegrator believes that doesn’t seem likely to happen anytime soon.
Another potential downside is the volatility of the currency. The spikes and dives in the price of Bitcoin, Ethereum, and others have kept investors’ hearts in their throats in recent years. Fluctuations in price could add an element of unpredictability to operators’ balance sheets.
Overall, however, the advantages of bitcoin casinos "far outweigh" any potential disadvantages, Slotegrator says.
Considering the prevalence of cryptocurrencies, Slotegrator expects the number of new blockchain casinos to keep rising. Gambling platforms, as a rule, follow the preferences of their users in all respects: the diversity of gambling content and its providers, the quality of service, compatibility with mobile devices, the bonus system, and so on. Due to the regulation of gambling activities in different countries, payment methods are a key factor in attracting and retention of players.
The future of iGaming clearly includes the trend towards the adoption of bitcoin as a means of payment and deposit. So, the demand for blockchain casino development will be relevant in the long term.