Credit cards could no longer be used by players as well as accepted by operators in the online gambling sector beginning 14 April 2020, Gambling Commission announced. But will this move massively affect the iGaming industry?
The crypto gambling sector thinks otherwise.
The upcoming ban on the use of credit cards aims to protect players from overspending in online casinos and betting sites. Statistics show that about 10.5 million adults in Britain gamble online, and that 22 percent of online gamblers who use credit cards qualify as problem gamblers.
Neil McArthur, Gambling Commission chief executive, said:
“Credit card gambling can lead to significant financial harm. The ban that we have announced today should minimize the risks of harm to consumers from gambling with money they do not have.”
The exit of credit cards from online gambling properties licensed by the Gambling Commission, however, may set a precedent that could affect more operators and players worldwide. But this would not be the end of iGaming as cryptocurrency looks to save the day.
The use and integration of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) in online gambling websites can vastly improve the process for operators and gaming experience for players. Thanks to their unique and user-friendly characteristics, cryptocurrency can provide payment transactions that are better and even safer compared to credit cards.
How iGaming Operators Benefit from Crypto Payment Integration
One of the primary complaints against operators is the speed deposit and withdrawal transactions take to complete. With crypto payments, online betting sites can guarantee quick fund transfers to their players’ wallets.
This is all thanks to blockchain technology, which completely eliminates the need for players to wait for several business days just to cash out money. Crypto withdrawals only take a few to several minutes, depending on the amount withdrawn and on the blockchain traffic.
But more than ensuring a more desirable transaction speed, operators that add crypto payments to their gambling sites do broaden market reach. Tapping the growing crypto gambling community is good for business. Not only will integrating crypto payments help operators stay ahead of competition, but it also lets them go toe-to-toe with popular gaming decentralized applications (dApps).
What Players Gain from Using Cryptocurrency for iGaming
Other than fast withdrawals, players get to appreciate the infinitesimally small fees required for every withdrawal transaction. Their cashouts then go straight to their designated wallet addresses, which also highlight anonymity and security.
In terms of security, the use of cryptocurrency can help to prevent overspending. Compared to using credit cards, players who use cryptocurrency to fund their casino balance will still need to purchase and transfer coins to their wallet. This process, although quick and simple, requires an extra step that prohibits players from instantly and irresponsibly adding balance to their casino accounts.
Most of all, however, players enjoy the flexibility when selecting the payment method that best suits their needs. This holds true for casinos that accept both fiat money and cryptocurrency. This way, players can assign specific amount for their bankroll in crypto, making it easier for them to control how much money they will be willing to risk in online gambling.
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This development marks a new opportunity for operators, players, and even regulators to explore the functions and benefits of integrating cryptocurrency payments into the iGaming industry. The question now is: “Are you ready to use crypto instead of credit cards?”