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When it comes to casinos, responsible gambling and the protection of those playing casino games are highly debated topics in general. This is especially true when it comes to those casinos that accept alternative payment methods like cryptocurrencies.
But what are cryptocurrencies, what is blockchain and how have casinos integrated financial tech into their institutions? Read on to find out more.
Definitions to the latest buzzwords in fintech
Cryptocurrencies are a medium of exchange in the digital realm. Just like the US dollar or British pound, cryptocurrencies are a way to make financial transactions. But unlike these more familiar currencies, cryptocurrency is not controlled by a central authority and exists in the online sphere. This decentralised aspect of cryptocurrencies is what really differentiates them from the everyday money we’re familiar with and theoretically makes them immune to government interference.
Cryptocurrency can be sent between two parties using private and public keys. The technology that cryptocurrency is based on is known as blockchain. Blockchain is what allows the decentralised nature of crypto currency to exist. Participants can confirm transactions without nearing a central clearing authority. Today, cryptocurrencies are somewhat of a global phenomenon. The most notable one in existence is called Bitcoin. Invented back in 2008 by an unknown person or group of people known as Satoshi Nakamoto, Bitcoin quickly grew in popularity over time. Research done by the University of Cambridge estimated that in 2017 there were approximately 2.9 to 5.8 million unique users of cryptocurrency wallets, with most of them using Bitcoin.
In fact, some of the most famous people in the world have invested in Bitcoin — which may have added to its popularity. This includes Snoop Dogg, Paris Hilton, Bill Gates, Serena Williams, Elon Musk and more.
“Bitcoin is exciting because it shows how cheap it can be,” said Bill Gates in an interview back in 2014. “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.”
Facebook launched its stablecoin cryptocurrency called Libra, with CEO Mark Zuckerberg saying “when we do things that are going to be very sensitive for society, we want to have a period where we can go out and talk about them and consult with people and get feedback and work through the issues before rolling them out.” He added: “The technology powering Bitcoin could help improve Facebook in the future.”
A survey in 2019 showed that 36.5million people in the United States owned some form of cryptocurrency, with an average amount in accounts of $5447 and median amount of $360.
Blockchain, Cryptocurrency and Casinos
One of the places that have latched onto blockchain technology very early is the online casino. And while not all casinos accept bitcoin, many of them do have the blockchain technology to accept different kinds of cryptocurrencies — which of course, varies from casino to casino. Crypto and blockchain casinos are now attracting almost 30,000 players around the globe per week and becoming more and more popular amongst gamblers.
One of the reasons that online casinos have begun integrating blockchain technology as part of their offering is the dependence the industry has on fast and efficient payouts. While many gambling operators offer multiple banking methods, they can be unreliable, slow or expensive. Blockchain, as a decentralised system, gets rid of the third party and makes transactions like deposits and payouts happen faster, avoiding the long delays gamblers have come to expect from more traditional payment methods. Winners love the idea of these fast, easy transactions as they can access their money sooner.
Another reason blockchain technology and cryptocurrencies have become so popular with casino lovers is the anonymity and safety it affords them. Cryptocurrencies ensure complete privacy for those who use them, so transactions won’t come up on bank statements as they would for traditional banking. As cryptocurrencies are encrypted you don’t need to provide personal data in order to deposit or withdraw funds. With so many people and organisations worried about protecting their data, crypto currency is a fantastic alternative to more traditional currencies.
Gambling with cryptocurrencies normally offers an extra sense of personal and financial safety.
Playing with cryptocurrencies can also be a cheaper alternative as there are no high third-party fees for transactions. The online digital nature of casinos means they’re accessed by people all around the world, which means that cryptocurrencies existing outside central authorities or governing bodies ensures ease of use at anytime, anywhere.
Protecting the players
Those casinos that operate with blockchain technology are using the best security and data protection out there. This can give greater confidence and support for their players as they are eliminating any third-party transactions and their data is secure through encryption. Casinos can offer further confidence to gamblers in other ways, including the way they resolve public disputes, the way they communicate publicly, if they are concerned with responsible gambling, if they’re fully licensed and more. Customer support is also of the utmost concern when it comes to protecting players and gaining trust of the people who access the website.
By having the option for cryptocurrencies as a payment method, online casinos are showing their customers their interested in using the latest technology and supporting ease of use, as well as are concerned about data and privacy issues. It is likely more online casinos will integrate blockchain and cryptocurrencies into the future.
