The use of blockchain for online casinos
Blockchain is one of the most popular buzzwords around right now. Digital information, stored in a public data base, blocks store information about transactions including the dollar amount, date and time of your transactions.
Using peer-to-peer technology, blockchain is the basis for cryptocurrencies like bitcoin. Blockchain has had an incredible impact on so many industries, including retail and hospitality — but one of its most successful integrations has come from the gaming sector.
Blockchain and the gaming sector
Blockchain has an exciting feature in the gaming sector. Many gaming stores now accept blockchain currencies as tender to purchase some of the most popular games out there; and online casinos have gone even further. Mainstream adoption of cryptocurrencies like bitcoin in online casinos began late last year.
The rise of blockchain is correlated with the growth of online casinos. More people than ever are playing their casino games online, through smart phones and their tablets. According to a market research study, the global market value for regulated gambling registered at over $450 billion in 2019, with 11% of these revenues coming from the online gambling sector.
The online gambling sector is currently growing at a fast pace in the United States with states now having the option to legalise gambling activities in their state. States like Pennsylvania and New Jersey have now legalised online gambling in their states. This has led to a number of gambling providers targeting citizens to use their sites for casino games, trying to provide the best offers. This explains another reason why the use of cryptocurrencies for online casinos has become popular as sites are trying to diversify from their competitors.
Advancements in gaming technology, including graphics, audio and game play, have fans of casino games enjoying poker, blackjack and more online. As a result, many individuals are making all their cash transactions online, and some of these payments are through blockchain technology including bitcoin.
But what are the benefits for online casinos to use blockchain? First off, there’s the level of trust, which is very important when it comes to making online transactions. There has been some distrust in the industry between players and owners, because of some perceptions around unfairness around pay-outs. But blockchain can serve as a record for games and bets, ensuring that the odds are not rigged and that the pay-outs are made correctly and on time. This creates a better relationship over time between the brand and the player, with more players sticking with their favourite brands that they know and trust — and of course, recommending them to others.
There’s also the security element. User details are kept secure and can’t be stolen by third parties. As well, the public cannot view their transactions or identities as users are only tied to their anonymous wallet addresses that are secured using blockchain technology. This is important for those people who want their privacy when it comes to playing their favourite casino games and want to keep their financial transactions to themselves.
Ease of transactions are also one of the reasons that cryptocurrency is becoming a popular form of transaction for casino fans. Banks have been known for their long processing times, and their charges can also be high. Cryptocurrencies make these transactions much, much faster. Not having to go through a third-party bank means that deposits and withdrawals can be made sooner, while excess charges may also be eliminated.
Then there’s the international side of things. Bill Gates, one of the technology gurus of the world said of bitcoin: “Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient”. Online casino games, like most other industries, have become a global phenomenon, with many big brands attracting customers across the world. The integration of this technology has meant that many players can now play without having to deal with issues around international currencies. They can also play from some of their favourite casino brands, wherever they may be, without having to visit a gaming club. There are also no limitations when it comes to making payments as cryptocurrencies are not affected by cross border monetary restrictions.
Blockchain in the future
As the former CEO of Google, Dr. Eric Schmidt said: “Bitcoin is a remarkable cryptographic achievement and the ability to create something which is not duplicable in the digital world has enormous value… incredibly useful for many computer applications.”
Blockchain is one of the many new technologies that will likely change the industry over the years. Of course, there are still many issues for online casinos, including gambling addiction, the prevention of money laundering and blocking users from countries where gambling is illegal. But blockchain technology does have some potential to ease up some issues when it comes to online gambling and making it more accessible for those who love to play. They also have further benefits for online casinos; studies show that the operational costs for online casinos were reduced by 1% when operated fully on cryptocurrencies.
It’s likely that online casinos will continue to integrate blockchain technologies into their offering, so that users can enjoy all the benefits that it has to offer.