Online casinos were booming since the late ’90s. They brought gambling fun right to your doorsteps. Even better, smartphones enabled gamblers to enjoy their favorite slots and games, on the go. The sounds of spins were just music to the ears. The visuals and transitions were smoother than ever. An average netizen could have loads of fun and entertainment at the comfort of the couch. Nevertheless, governments started imposing bans and restrictions on the online casino industry. U.S and U.K residents often found themselves in casino’s list of restricted territories.
To add up to the troubles, the withdrawal process was not likable in popular casinos. You could only withdraw above a certain threshold. In addition, there were delays and bottlenecks, in regards to withdrawals. Similarly, there were issues in funding as well. Not everyone prefers to pull out their credit card and use sensitive data all the time. In some cases, the banks may not allow for international remittances. When you consider alternatives, e-payment processors charged a lot of fees. This is where cryptocurrency gambling options come handy to gamblers.
The fluid and pseudonymous nature of cryptocurrencies makes them perfect for online gambling. During the period of 2010-2014, only BTC was used predominantly. Initially, it accounted for tons of Bitcoin exclusive casinos. As of today, the legacy brands have not only added BTC, but also ETH, LTC and also several lesser market cap coins. Eventually, the accessibility to cryptocurrency gambling options is bigger than ever before. In this post, we will discuss in-depth and detail, about gambling in the crypto space. We will cover a little background, latest projects, upcoming ones and scope of cryptocurrency gambling industry.
Brief History
How it all began?
At the starting stages, cryptocurrency gambling was limited to just dice and other simplified games. These were quite easy to handle for the operators as well as players. Moreover, it allowed operators to amicably make adjustments when forced to shut down sites. Typically, a player will bet a certain amount of cash from his wallet. He/she will roll the dice and have the winnings transferred to the wallet instantly.
Scripts for such games sold like hot cakes across crypto marketplaces. Eventually, basic gambling portals were developed on the internet. Many of these portals operated in the confines of a web browser, featuring simple games such as blackjack and roulette. It did not take so long for full-fledged online gaming brands to start offering casino slots and games. Dedicated user management systems, secure wallets and blockchain models were used extensively.
Presently, there are tons and tons of casino brands that focus solely on cryptocurrencies. For the most part, these casinos do not accept FIAT deposits of any sort. Well-known casino brands such as Bovada, one of the early adopters of cryptocurrencies that once operated exclusively in real money, currently conducts much of their transactions in cryptocurrencies. Besides Bitcoin, these casinos accept Ethereum, Dogecoin, LiteCoin, Monero and more.
Advantages and disadvantages in crypto space
Cryptocurrencies hand a lot more control to casinos and gamblers alike. The average gambler will appreciate the speed and security in every single transaction. Nevertheless, using cryptocurrencies for banks can also benefit cheating players. They may use the improved security in transactions to their advantage after compromising their victim’s accounts. More detrimental side effects may come out of it, especially in cases involving absolute beginners. We will breakdown the pros and cons of using cryptocurrencies for online gambling.
Pros
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Quicker and easier payments
Funding your account at online casino is easier than ever. There is no need to pull out your credit card. You can easily eliminate possible credit card processing charges. There is no unfavorable currency conversion or delays inherent to all sorts of international remittances.
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Faster and convenient withdrawals
The payouts are much timelier in the crypto space. Being paid within hours is the most attractive benefit to gamblers. There is no need to fill in invoices or request withdrawal to the local bank. There is no banking delay or currency conversion involved.
Cons
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It’s an open jungle
A conventional online casino cannot just take your funds and cheat you. You can raise disputes or force chargebacks via your bank. You do not have such cushion of safety, in the crypto space. Once your funds are sent to a cryptocurrency wallet, there is no way of recovering it. Make sure to go through reviews and licensing information.
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Hackers go unpunished
Cryptocurrency based casinos may not be able to recover your lost account in its inherent blockchain model. Make sure to have your credentials stored safely for consistent usage. In addition, once your account is hacked, most casinos cannot even help you recover it. To counter hacking threats, some casinos offer 2 Factor Verification to beef up account security.
Blockchain model
Services like Funfair offer a revolutionary blockchain technology platform that offer low cost, transparent casino experience. Built on the back of the Ethereum blockchain protocol, such casinos are easy to create and manage. It accounts for faster and fairer gameplay, much to the liking of players. Operators can utilize a dedicated layer for branding and marketing purposes. Additionally, they can introduce KYC for player validations in the casino.
Calculation and breakdown of fees will be done by the system. The tokenized architecture will automate 99% of the operations within the casino. Moreover, the serverless decentralized platform is literally impossible to hack into. Furthermore, the casinos will operate at 10% of the regular network processing costs. Ultimately, the blockchain model can effectively bring players, operators, game developers and affiliates within the same setup.
Restricted territories
U.S and U.K were never the darlings of the online gambling industry. Since the beginning, United States made endless attempts at outlawing online gambling activities. The UIGEA in 2004 almost hit the final nail in the coffin. It forced all the big names in the industry to disallow US residents altogether. While only selective states having their guard up against online gambling in the U.S, U.K has entirely regulated it. Having heavily influenced by its regulated nature, U.K casinos adhere to too much red tape.
The advent of cryptocurrency gambling has made things much more viable to the U.S residents. It makes things easy at both ends - casinos and gamblers. The restrictive nature of regulations in the U.K would mean their casinos can not allow cryptocurrencies. U.K players can enjoy some cryptocurrency-based gambling via offshore brands. But, by doing so, they also give up on the protection that their regulated industry would otherwise provide.
Besides the smaller list of restricted territories, the majority of the world will enjoy easy access to online gambling. Play from restricted territories can still enjoy some action in the crypto space. However, they should be aware of the risks that come with it. The option of cryptos will only make gambling more convenient and likable to the masses. Nevertheless, you should consistently be in check with the regulations with cryptos in your territory.
Popular cryptocurrency gambling sites
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Bit Starz: It is one of the largest bitcoin casinos online. They are registered and regulated under Curacao legislations. BitStarz allows players to use Bitcoin, Ethereum, Bitcoin Cash and Dogecoin as payment methods in addition to FIAT payment options. Boasting a humungous collection of over 2000 games, this casino never feels lacking. It features a great combination of bonuses to attract new players. They also offer renewal bonuses and continuous promotions. Friendly customer support is quick to resolve issues 24×7.
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Bitcasino.io: The casino was launched as early as 2013. It relies on CoinGaming platform that brings a slew of games from Betsoft, Microgaming and more gaming partners. The user interface is simple and classy. They have a dedicated section for live dealing games. In addition, it has an integrated sportsbook within the platform. This bitcoin exclusive casino also accepts Ethereum and LiteCoin at the moment. Players can make deposits easily through cryptocurrency exchanges. Their mobile app allows enjoying games on the go.
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Bitcoin Penguin: As the name suggests, it is a Bitcoin specialty casino. Launched in 2014, it is one of the earliest adopters of Bitcoin in the industry. The casino is licensed and regulated under Costa Rica. Founded by a team of experts, this casino operates exclusively in the crypto space. It features all categories of games from poker to roulette to casino games to slots to other cards and table games. They use Provably Fair to ensure the fair and legit outcomes in games.
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Fortune Jack: It is one of the popular mainstream casinos that operate exclusively with cryptocurrencies. The payment and withdrawal methods include a wide range of cryptos including Bitcoin, Ethereum, Dash, Dogecoin, LiteCoin, Z Cash and Bitcoin Cash. With over 2500 games, it brings out tons and tons of refreshing themes. It rewards players for deposits, loyalty and sport. Besides, it earns the loyalty of patrons by providing superior customer support and extremely fast payouts.
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mBit: It is a licensed, mobile casino offering an amazing selection of games. Old school gamblers will love the traditional casino games featured here. Launched in 2014, it is powered by CoinGaming.io. It is a white label gambling solution that accepts Bitcoin for the most part. The patrons love the speedy payouts and non-stop promotions. Despite some unclear accusations now and then across casino boards, the casino steadily records a large number of users daily.
Scope of cryptocurrency gambling
With the advancements in blockchain technology, there will be an increasing number of casinos in the crypto space. The simple and secure blockchain model will make gambling in the crypto space easier than ever. In addition, it ensures fair winning choices than the basic RNG protocol. Such measures come handy while getting recognized in highly regulated markets. Furthermore, the token powered system can incentivize casino affiliates and game developers. Major economic forces including Germany, Canada and Australia have given nod to cryptocurrencies already. In addition, licenses can easily be acquired from reputed boards like Swedish Gambling Authority, Malta Gaming Authority, etc.
Even in casinos with well-established, payment methods, the cryptocurrency payment options will take over quite dominantly. Though Bitcoin still remains the de facto cryptocurrency, other coins are gaining in acceptance as well. However, it is likely that some casinos will process withdrawals in Bitcoin, regardless of your choice of deposit. Ethereum and LiteCoin have the highest acceptance after Bitcoin. Currencies with lesser market cap such as Dogecoin or Monero are accepted at selected brands. The altcoins have been accepted since 2015, including BCH as a payment method. The acceptance of altcoins will be instrumental in making cryptocurrency gambling mainstream.
