The crypto gambling industry alone is estimated to be worth $250 million, and things are just heating up! Over 35% of all online bets are made via crypto, and 50% of bitcoin transactions are gambling-related. As you can see, online gambling and cryptocurrency are forming a synergy that is propelling both sectors forward. In this article, we’re going to get to the bottom of why crypto gambling is so popular and the impacts it’s having on the iGaming industry as a whole.
Slow Transactions Are a Thing of the Past
Cryptocurrency has really sped up gambling-related transactions, specifically withdrawals. Before the rise of crypto betting sites, traditional online casinos would often take 7+ days to pay players out. Crypto casinos have thrown that old meta out the window, thanks to the blockchain and ease of transactions, players can cash out via bitcoin or ethereum and receive their winnings in under 10 minutes.
Anonymity Is Back in Style
Back in the early days of online casinos, there were virtually no rules as there were no laws governing the industry. Governments eventually responded by either shutting down these online casinos or by attempting to regulate them.
Governments tasked gaming authorities with monitoring these sites, and one of the big rules they came up with was KYC (know your customer). This forced online casinos to verify the identity of all players, their residence, and their source of funds.
KYC was extremely unpopular with a significant segment of gamblers who promptly stopped gambling at licensed online casinos, and many stopped gambling altogether because non-licensed sites were too risky to play at.
A large percentage of crypto casinos don’t require any kind of verification and allow you to play anonymously. This has caused a wave of players who value their privacy to come flooding back. And thanks to the provably fair algorithm that many crypto casinos use, players can personally check if the games are rigged or not, giving them peace of mind.
Cryptocurrency Has Altered the iGaming Experience via Tokenization
Another way cryptocurrency has transformed the iGaming experience is by creating new ways to earn rewards and connect with other players. Via tokenization, crypto casinos can create their own digital assets, which they can give to players, who then can trade and sell them to fellow players. This creates a whole separate economy.
Decentraland is a perfect example of this. This metaverse features a casino where you can play all of your favorite games and win crypto, which you can cash out or use to purchase things in the metaverse, from property to businesses to cars to clothes. We will see crypto casinos transform into entire online worlds just like the mega brick-and-mortar casinos transformed from a handful of tables and slots into resorts.
Cryptocurrency Enhances Security For Players and Operators
A significant issue facing online gambling operators is chargebacks with disgruntled players filing fraudulent claims and cybercriminals stealing card details to play online. Betting sites have one of the highest chargeback rates of any industry which costs operators millions in fees every year. It is expensive to fight chargebacks card processors tack on extra fees as online gambling is considered a high-risk industry. As cryptocurrency transactions are 100% non-reversible, accepting crypto an online betting site can instantly eliminate the chargeback problem and boost their profit margins.
Cryptocurrency also boosts player safety. As mentioned earlier many crypto betting sites allow you to play anonymously. This means you don’t have to share personal documents like your passport, bank statement and utility bill with the online casino. You no longer have to trust a betting site to securely store information that can be used for identity fraud.
The other big way cryptocurrency has transformed player security is the use of provably fair. Traditional online casinos get their random number generator (RNG) and games inspected by third-party testers and you as a player just have to trust the results. Well, thanks to cryptography and the blockchain you can now personally inspect the game results at a crypto casino and verify if they are legitimate.
Cryptocurrency has positively impacted online gambling as players get greater access, fast payments, enhanced privacy and security, and new gaming experiences. To learn more about the future of crypto and online gambling, read some of our other articles!
