The Rise of Cryptocurrency in Online Gambling
In this comprehensive guide, we’ll break down the growing role of digital currency in online casinos, sports betting, poker, and more. Read on to learn all about:
The Natural Fit Between Crypto and Gambling
On the surface, cryptocurrencies like Bitcoin, Ethereum, Litecoin perfectly transfer value quickly. This aligns flawlessly with a major purpose of online casinos – moving funds between players and operators. Crypto allows fast, global transactions without borders or banking obstacles.
Additionally, cryptocurrency offers useful attributes for iGaming, like:
- Decentralization: No single entity controls the currency; blockchain networks support it. This provides inherent security benefits.
- Anonymity: Crypto transactions obfuscate identities better than credit cards or bank transfers.
- Transparency: Blockchain ledgers are public, allowing transaction tracing and openness.
- Irreversibility: Crypto transactions cannot be reversed or disputed as with credit card payments.
These factors make crypto integration a natural fit and an obvious evolution for the online gambling industry. The applications are only just beginning to be realized.
Benefits of Crypto for Online Gambling Players
For players specifically, cryptocurrencies offer several compelling advantages:
- Faster payouts: Crypto withdrawals process in minutes or hours, much faster than bank wires.
- Higher the greatest transactions: Cryptos allow transfers of larger sums than traditional methods.
- Improved security: Crypto reduces the vulnerability of repeatedly sharing banking or card details.
- Low fees: Most crypto deposits and withdrawals incur minor network fees compared to other methods.
- Anonymity: Crypto provides a level of pseudonymity. It only requires an email and a crypto wallet address.
- Portability: Players can access their cryptocurrency funds anywhere in the world.
- Rewards: Some casinos offer rewards like bonuses for using crypto as an incentive.
With these benefits, it’s easy to see the appeal of cryptocurrency payments for iGaming enthusiasts and big bettors alike.
Advantages of Crypto for iGaming Operators
Cryptocurrency support offers many advantages for online gambling operators as well:
- Faster transactions: – Crypto allows near real-time deposits and withdrawals, improving cash flow.
- Efficient operations: Less processing overhead compared to traditional payment support.
- Lower fees: Only nominal blockchain network charges instead of card fees.
- Security: Crypto reduces the liability of storing customer banking data.
- Customer demand: Players expect crypto support as adoption grows. Ignoring it may impact competitiveness.
- New geographies: Cryptocurrencies enable accessing new unbanked markets where gambling is legal. However, credit card penetration is scarce.
- Innovation: Supporting crypto aligns brands with cutting-edge fintech innovation.
Cryptocurrencies can optimize operations, security, reach, and innovation for gaming businesses, propelling growth.
How Crypto Transactions Work at Online Gambling Sites
Integrating cryptocurrency with gambling sites requires more work compared to traditional payments. Here is how the transaction process generally unfolds:
- Players must first get cryptocurrency from an exchange like Coinbase or crypto wallet services.
- At online casinos, players choose crypto like BTC or ETH during registration or deposits. They provide the public wallet address to transfer funds.
- The casino handles compliance requirements like KYC (know your customer) to ensure a legitimate source of funds.
- Players transfer crypto from their wallet to the casino’s designated address. This is recorded on the blockchain.
- For withdrawals, players submit a request through their casino cashier back to their wallet address.
- The casino batches and processes crypto payouts directly on-chain.
Projections on the Future of Crypto and Online Gambling
Looking ahead, the cryptocurrency appears poised for massive gaming growth as adoption increases. Consider:
- 22% of Bitcoin investors used it for online gambling in 2021, which is expected to rise.
- $92 billion in crypto was spent on online gambling in 2021.
- 80% of crypto gamblers say they will gamble more with crypto in the next year.
- 55% of online gamblers would more readily return to a casino offering crypto.
- 72% of crypto holders see crypto gambling increasing in the next three years.