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How Bitcoin Has Changed the Online Gaming Industry

Casinos long ago have not been what people imagine them to be – Las Vegas posh places with golden interior, suited gentlemen and long green tables, all of that filled with the sound of money and machines rattling with coins.

Right now, this is not the reality. As a result of the current lockdown situation, new players turn to online casinos where they can play from the comfort of their living room.

The gambling market has been increasing in numbers and it reached nearly $449.3 billion in 2018 and recorded an annual growth rate of 4.1% since 2014. It is expected for the market to reach $565.4 billion by 2022.

What lies between a good casino and a truly successful and safe one? Blockchain. But how is that possible, you ask? Let’s take a closer look.

If we have to talk profit-based merits, online and Blockchain casinos are expected to hit $94 billion by 2024. There are a lot of Blockchains, but it all started with Bitcoin, with Blockchain being created to become its public transaction ledger. The rest is history.

So, what is so special about Blockchain? Sure, you have heard it before. It is transparent. This is quite a simple reasoning but it is a major reason why most players don’t trust traditional and non-Blockchain online casinos. There are some basic regulations that gambling businesses follow but rules are often broken. For example, automated gaming machines are often programmed to change the domain and start from scratch for every player, whilst they should return from 80% to 99.9% of the bet pool to the players. This way the owners of the casino take all the money.

For this and many other reasons, people started blacklisting casinos and some of the most common reasons are the following:

  • Payment problems – casinos are often not really honest when it comes to payments. Some of them withdraw money quickly, others take up to one month. They often lie when they tell the players that they don’t have certain qualifications to withdraw their money or they simply don’t send the paycheck to mail.
  • No Random Number Generator – every casino is obliged to have such a generator to make all rolls, spins, deals random so each game is based on the players’ luck. This mechanism is often rigged so players can never really win.
  • False bonuses – some casinos like to present great bonuses to players but with impossible conditions to get them.
  • Spam alert – casinos like to send out endless newsletters with offers that often end up in the players’ spam folder.
  • Bad support – another major reason for a casino to be blacklisted is the lack of response from the support management of the casino.

It’s a good thing that we live in a day and age when technology like Blockchain exists and it can easily solve some of the mentioned problems.

The lack of payment is the easiest problem to tackle. Since Blockchain is building everything on smart contracts, every game becomes an interaction between a player and a smart contract. There is no third party to interfere and manage the money, so every cent gets transferred directly after the game.

Randomness is solved with the transparency of Blockchain and since developers publish their source code, players can check the RNG in it and verify its authenticity.

Spamming is another issue that is easily solved since players cannot be spammed, as they don’t provide their email addresses but only their blockchain address.

The operator SportCoin, as one of the companies that went from centralized to decentralized, had a few words to share on the experience and journey:

“Really SportCoin was no better than incumbent exchanges like BetFair, except for the fact that users could use Bitcoin instead of fiat currency. […]

After Ethereum launched, we realized that it is the solution to many of the problems we saw in SportCoin. Rather than us being responsible for holding our users’ funds, this could be handled by a special program known as a “smart contract”. The mental model we like to use for smart contracts is to consider our database open and publicly accessible…”

Of course, online and decentralized casinos have cryptocurrencies aside from fiat currencies – one of them is the ancestor Bitcoin. Industry experts predict and strive for Bitcoin becoming the number one currency in the world, surpassing all fiat ones. This move has a name and it’s called “hyperbitcoinization”. Fiat currencies are expected to devalue against digital ones and push BTC adoption further on.

A lot of companies are confident that they can prepare the world for such a future and online casinos might also help and contribute to it such as Bitcoin casinos like mBit Casino, Sportsbet.io Casino, FortuneJack, and many others. They offer great VIP bonuses and tons of Bitcoin casino games, spins, slots, poker, etc.

Neel Popat, CEO of Donut, an app that allows users to turn their spare change into Bitcoin, was quoted, saying:

“We continue to build more and more infrastructure to support hyperbitcoinization but still have some work to do to reduce the entry barriers for the average consumer. The last decade was about establishing bitcoin as

 a credible alternative to centralized currencies. The next decade will be about facilitating bitcoin’s mass adoption.”

From an economic perspective, Bitcoin will need to first become a “sound” currency for global adoption to truly happen. A “sound” currency is such that is durable, portable, limited in supply, and uniform. Bitcoin definitely is all of that but what it needs is acceptance at retail and public institutions. This can happen if Bitcoin acquires smaller fees for processing payments and less time for confirmation.

The digital currency is not ready to become mainstream yet but certainly for the future it has so many advantages compared to fiat that it will find its path to central stage and the world will be able to welcome hyperbitcoinization with open arms.

Why should casinos consider going decentralized?

Well, they will start taking smaller fees for each bet and give players honesty. This will attract newbies to online gambling and keep the current ones, as well. Players will be introduced to cryptocurrencies more and more and they will grasp how much easier it is to make transactions with them. Step by step, this will lead to the world slowly accepting crypto payments. According to experts, 2030 might be the year for it. We certainly hope so.

Other than embracing decentralized gaming, the iGaming industry can also explore the benefits of accepting Bitcoin and discover the advantages of Bitcoin in gambling as well as how iGaming can improve with Bitcoin tracking. But the question now is: Can it expect improvements in the industry following the Bitcoin halving in 2020?

Ready to read more about Bitcoin and Blockchain in iGaming? Follow BestBitcoinCasino.com on Twitter for the latest news and developments in crypto and blockchain gaming.

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