Over the last year or so, blockchain technology has made its way to the gambling industry and it has done so with fantastic results. Not only has this technology greatly benefitted casinos and online betting sites, but it has also provided many benefits to gamblers as well. In addition to using bitcoin for gambling, online casinos have dramatically improved the overall experience for users in such a way that major casinos of the world are taking notice.
Blockchain Increases Security
When using online casinos and betting sites, it’s always a concern that private information and financial data could be compromised. Although these sites promise top of the line security, this current technology isn’t even on the same level as blockchain. Casinos that are built on blockchain are more secure because the tech itself is harder to hack or manipulate.
Every transaction made using crypto or made on a blockchain is public. This public access is one of the reasons why blockchain tech is so popular. It offers complete transparency, which prevents fraudulent activities. For online casinos, this transparency is a huge selling point to gamblers and bettors that might be suspicious at first. In other words, blockchain technology can help make betting sites and online casinos more credible.
When using crypto to gamble or place bets with, the transactions are much faster. For starters, if you are depositing funds into your account via Bitcoin or other accepted crypto coins then your money will appear much quicker than traditional forms like P2P networks and credit cards. This is because, the transactions themselves are much quicker due to the blockchain technology. Additionally, there’s no need for a third party to validate or confirm the deposit. It’s just a simple transfer from your “wallet” to the “wallet” on your casino or betting site’s account.
Now, if the casino itself is built on blockchain technology, then the user experience is also faster and more responsive due to how fast each block in a chain processes the information. Or, in this case, processes a wager. With blockchain technology, there are smart contracts with each transaction. This means that a bet or wager can automatically be settled without needing a lengthy period of time for individuals to review the bets. A faster confirmation also means faster payouts.
With credit cards, and other payment options, there’s a process to validate any financial transaction. And, as many people in the United States know, credit card companies have banned gambling related transactions. So, cryptocurrency bypasses these financial limitations because they don’t need any validation, they are decentralized so that no entity controls them, and they are private. In other words, they are borderless.
Cheaper to Use
When it comes to using credit cards, there are associated fees due to the credit card companies charging businesses for processing the payment. With crypto, there’s just the small fee associated with the transferring of coins. In some cases, it’s so small that most people don’t even notice. Whereas, credit card fees could be as high as 5% of a transaction.
If you don’t want people to know that you are spending money on gambling then cryptocurrency is the perfect way to accomplish this. Crypto protects the identity of users and doesn’t show up on a bank statement or credit card bill. As mentioned above, this privacy protection allows users to gamble in parts of the world where it’s illegal.
Due to the blockchain’s highly effective anonymity, some online casinos don’t even require bettors or gamblers to create an account.
Because online casinos can save a lot of money when using cryptocurrency, by cutting out third party processing fees, they are able to offer some unique bonuses and promotions. For example, many sports betting sites offer matching first time deposits or reload bonuses for individuals that deposit crypto into their accounts.
Don’t Need any Licenses
Not that this is a common practice, but online casinos that operate solely on blockchain technology and crypto payments don’t need licenses. These websites are regulated through the blockchain’s smart contract technology; therefore gamblers are assured of getting paid if they win their wager. An example of this is the many gambling DApps popping up on popular blockchains like Tron and Eos that accept wagers and betting, but aren’t licensed casinos or sports betting entities.
Gambling Industry Betting on a Blockchain Future
Ultimately, we are just beginning to see the positive effects that blockchain can have on this industry. With that said, the gambling or gaming industry is betting on blockchain to increase its overall success in ways that were previously unattainable and unimaginable.