4 Reasons Fiat Online Casinos Will Ditch Bitcoin
The increasing rate of fiat-operated online casinos adopting Bitcoin as one of the payment methods is a clear indication of the digital currency’s progress into the mainstream. It hints the growing demand of the player base, and it presents the potential casinos see in Bitcoin.
This is the reason all hail was made when Vera&John became the first licensed and regulated online casino to accept Bitcoin payments, but much disappointment was shared among Bitcoin users when it abruptly suspended this service only three months after.
Although a rather vague announcement was released by the then Bitcoin casino to explain such decision, generating speculations cannot be helped, which led to the four likely reasons that may cause other gambling platforms to follow the footsteps of Vera&John in sidelining Bitcoin.
According to reports, the lack of a regulatory framework became the most evident reason that the said casino ditched the digital currency after engaging in talks with the Lotteries and Gambling Authority of Malta. Bitcoin, as a means of payment, is not yet regulated in almost all countries except for Canada, which has already outlined its regulatory policies over the use of virtual currencies.
This has the potential to force online casinos to temporarily delay or even reconsider whether or not supporting Bitcoin is the smartest action to improve the online gaming experience of their players.
Moreover, Bitcoin alone posits a possible threat to the licensing authorities across the globe, which serves as a probable reason for such to influence Internet gambling operators to prioritize real money over the risk-oriented cryptocurrencies.
There have been talks within the Bitcoin community that licensing authorities and governments are wary over the fact that financial institutions like banks lose their power to control transactions, and therefore, lose profits due to the fact that Bitcoin casino games can operate without the intervention of third parties like the banks.
Another possible factor is the Bitcoin risks that may force casinos and betting websites to scrap the peer-to-peer currency off their list. In the case of Vera&John, the Bitcoin price was doing well when the casino announced to the public its acceptance of the cryptocoin. However, after a few months, its value dipped lower than $400, emphasizing price volatility, which is a significant factor when it comes to online gaming business.
Of course, the external Bitcoin-related events also play a huge role in the appeal of the digital currency. Bad publicity obviously leads to distrust and a lower rate of reception. The collapse of Mt. Gox, which was the largest Bitcoin exchange then, in February is the perfect example of an incident that may have largely affected fiat-run online casinos to veer away from accepting Bitcoin.