A new breed of gambling rises, and already several companies are quick to take a piece of this new niche market.
The first wave of decentralized casinos gives a glimpse of what the future of gambling is with blockchain. Now, nobody wants to be left out.
Speed, unfortunately, is not synonymous to success. Rushing for an early start in this market may sacrifice adequate research and knowledge of the essentials of online gaming and of blockchain technology.
While some companies hit the right buttons with their decentralized casinos, others fail to deliver everything players need and want in online gambling. This is the case with BlockStamp Games, a blockchain casino launched in early 2019 that falls short in the most important aspects of decentralized gaming.
Not All Blockchains are Good for Gaming
The key element to consider when launching decentralized casinos is blockchain itself. Several early blockchain casinos run on the Bitcoin blockchain. Now, because of its inability to scale, this blockchain hampers transaction speeds and fees. This explains how crucial choosing the right blockchain is.
BlockStamp Games operates on its own BST blockchain that takes cues from Bitcoin blockchain. BST blockchain comes with a bevy of features. For instance, it has up to 1MB transaction size. It also promises decreased block time of up to one minute, which results in shorter transaction times and quicker confirmations.
Although a one-minute block time outshines other blockchains’ average block time of 10 minutes, BST blockchain fails to translate this feature to better use on BlockStamp Games. The problem with this decentralized casino running on the said blockchain is the fact that the games would take up to 20 seconds for real money bets and up to 60 seconds for demo bets to show the result of a single bet. The rather long waiting time negatively impacts the overall betting experience. Unfortunately, most casino players will not be too keen to trade fast and continuous betting for extremely long waiting times on a blockchain casino.
Fewer Incentives Means Fewer Players
Companies eyeing their place in the decentralized gambling market should remember that players must be rewarded, no matter how big or small. This is the reason why bonuses, promotions, and other freebies, which are common in traditional fiat-money and crypto-friendly casinos, are a must-have even in decentralized casinos.
BlockStamp Games launched with only two ways to incentivize players. The first is through BST airdrops. The catch, however, is that players can only get the free BTS (0.1 BTS on the average) when they join rooms. The only way for them to get more BTS for free is when they join other rooms as they can only claim one airdrop per room.
The other is through the Millionaire Madness Double Payout Championship. This functions like a leaderboard, which – in BlockStamp Games’ case – rewards only the top player.
With only these two incentives, decentralized casinos like BlockStamp Games will face some challenges in attracting players and keeping them in the long run. Bonuses, prizes, and rewards, after all, are great motivators in the iGaming world.
Degrading Players Leads to Low Retention
Attracting players and ensuring they stay and keep playing are essential factors in the success of a casino. This shows how BlockStamp Games may face challenges to increase their player retention rate.
If waiting a long time for the results is bad enough, more so if the bet loses and the player gets the message “Bad luck” as a reward. To make matters worse, a pop-up message will appear on the lower right corner, reminding players that they have indeed lost and could not control a chance.
These texts may have no bearing for some, but the same cannot be said about the others. Decentralized casinos that are in the same situation should re-evaluate their communication style and improve it to avoid negative impressions on the part of the players. Treating all players right, after all, is the basic block of a strong and growing community of players.
Fear of missing out is real when it comes to blockchain gaming. But jumping early on the train without the right arsenal of technological expertise and industry knowledge will result in a series of problems and possibly a missed opportunity to succeed in the business.
Operating decentralized casinos is no longer only about the technology used, but it is also about the right marketing strategies that work well in the iGaming industry. Companies looking to enter the world of decentralized gaming should consider the points raised above to avoid making the same mistakes of other companies.
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