Bitcoin casinos don’t just shut down for no reason. Unravel the bitter truths that cause Bitcoin gambling platforms to bid the online gambling world farewell.
It did not take long for the peer-to-peer currency Bitcoin to be dubbed as the virtual currency made for online gambling. It was as if the online gaming community fell in love with Bitcoin at the very first sight. This does not surprise the industry, then, that many websites fully operating or supporting the digital currency have introduced themselves to the gaming scene one by one; sometimes, even all at once.
While the influx of Bitcoin casinos and gambling platforms is a sight to behold—it gives the notion that Bitcoin adoption is unstoppable—there lies the sad truth. Most of them just come and go. Some stay, but the rest are headed for the exit with only months of operation.
Forums and discussion boards are the common venues where the drama behind the bright lights and rewarding profits are unveiled.
Bitcointalk, a Bitcoin-centric forum, is the number one platform where online gambling brands and the community of Bitcoin bettors interact, share promotions and feedback, and make timely announcements for new games and offerings. Likewise, it is where operators bid the Bitcoin gambling world goodbye or where players express their rage over the casino’s sudden disappearance, and eventually reveal the main reasons a Bitcoin casino would shut down.
While brands may say a myriad of reasons to justify their action, it can be clustered into four main points.
Reason #1: Bankruptcy
Setting up an online casino is not an easy job. It requires thorough planning on how it should be properly marketed, what its short and long-term goals are, and how it is going to sustain its operations. The last one is the most important aspect every operator should keep in mind, by the way.
Some Bitcoin casino brands are guilty of this mistake, and it had caused them a ticket out of the industry (not until they launch another gaming platform). Starting out in the online gaming business without enough capital and just rely on the wagers of the players is a big no-no. While this can be simply attributed to the lack of knowledge in handling an online casino, which most likely will be vehemently denied by operators, this can be seen as a mere scam.
Reason #2: Scam
Heard of the Coinbet.cc fiasco? Although it offers sports betting and Bitcoin poker aside from its casino gaming services, it shares the same case with some of the platforms that mask themselves as a Bitcoin casino.
At first, they will present a list of credentials, but as months pass by, all the signs begin to surface, and if not quick enough, players will become the newest victims. Once a scam casino shuts down, there will be no possible way for the unfortunate ones to regain their stolen bitcoins unless the court intervenes.
Even though they announce on their website that they can be contacted through customer support or will eventually be back in a few hours after a short maintenance work, as was the case of BitcoinLiveBets, the harsh reality is that the unwithdrawn bitcoins are gone, perhaps forever.
Reason #3: Bitcoin Regulation
Losing a decent or quality Bitcoin casino due to Bitcoin regulation is regrettable. Take for instance Just-Dice and its sister platform, Doge-Dice. These websites were among the Bitcoin betting websites that were affected by the law Canada enacted with regards to virtual currencies.
Although blaming the country’s jurisdiction for the platform’s demise is not exactly popular at present, the online gaming community can expect more similar cases as other countries have begun drafting bills to regulate Bitcoin and digital currencies in general.
Reason #4: Personal Reasons
Satoshi Poker had a bright future in the Bitcoin gaming scene, but due to a number of reasons, which its former CEO Bart van Oort detailed on Bitcointalk, it had to be auctioned off.
His inability to handle other projects and his running into personal debts, as well as his personal life that hangs by a thread, were the reasons he opted to sell the platform. Fortunately for its players and affiliates, the website will soon resurrect, but this time, bearing the name BurnTurn Poker.
In 2021, two new Bitcoin casinos shut down, with one of the two–Crypto1Casino–citing their management’s decision to focus on a non-gambling related project instead.
There can be other factors behind the closure of a Bitcoin casino, but no matter what the operators say about the real story, it can be simply attributed to bankruptcy, scam, Bitcoin regulation, and personal reasons.