The Impact of Cryptocurrencies on iGambling Industry

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Tuesday, May 1st, 2018 | Written by Charles Washington

Cryptocurrencies, such as Bitcoin, Litecoin and Ethereum have had a massive impact on the iGambling industry. It goes without saying that Bitcoin is the world’s largest cryptocurrency, and since its initial release in 2009, it has completely transformed the industry and the way people look at money, with people now able to earn a wage, book a hotel and more recently gamble using cryptocurrencies.

So what is the main impact that Bitcoin and other cryptocurrencies have had on online casino and poker providers?

Cryptocurrency transactions operate peer to peer without the need for a middle-man, such as a central bank or authority, with its decentralized nodes facilitating a cheap way of moving digital assets around. In addition, quick processing and minimal fee transactions make it an attractive currency for both consumers and service providers.

These are just some of the reasons why cryptocurrencies have risen in popularity over the past 5 years, making it no surprise that the gambling industry has gotten on board. Whichever way you look at it, be it online casinos capitalizing on the popularity of Bitcoin, or providers making their games more accessible, it’s a win-win situation for customers and casino operators alike.

As a result, more and more gambling establishments are cropping up as the rise continues, and it shows no signs of slowing down. These days, people can now search on the internet for online casinos specifically designed to accept cryptocurrencies either as a sole means of payment, or alongside other payment methods such as Visa or PayPal.

What’s more, because each cryptocurrency carries a value, this can be measured in real terms against other currencies in which the jurisdiction resides, e.g. US dollars or British pounds, etc.

Boon for Gambling Industry

Whilst some people remain skeptical almost ten years on since Bitcoin‘s launch, others are busy enjoying it in all its glory. Five years ago, it was estimated that half of all Bitcoin transactions worldwide were online gambling related. Today, the cryptocurrency gambling market is worth billions, and there are already many established gambling providers opening their doors to cryptocurrencies, as well as many new establishments, too.

The advantages for both player and operator are plentiful.

For example, betting sites are able to accept sports bets using Bitcoin with very little processing or transaction fees involved. They are also able to offer more competitive odds and wagering, such as zero house edge and zero commission exchange betting, which for those in the industry is revolutionary.

Upsetting the Apple Cart

While many people and gambling operators are on board and embracing cryptocurrency, there are many who aren’t. As with most things, there are pros and cons. Bypassing restrictions might seem like a great idea to some, but bad for others. Especially if it opens the door to exploitation and potential scams.

However, the advantages of using cryptocurrency for gambling outweigh the negatives and it is fast becoming a cost effective way to wager money on casino games such as slots, roulette, blackjack, poker and bingo. Due to the cheap nature of depositing and withdrawing from a casino or betting account online, more gambling providers are exploring its use.

The Bitcoin Gambling Revolution

When cryptocurrencies started out, their use was limited, especially in gambling. People had the mindset of even if you win lots of Bitcoin, what can you do with them? However, the snowball effect has meant rapid expansion across the web with more and more businesses branching out and accepting Bitcoin for their services. Furthermore, there are now numerous exchange services that allow you to directly convert Bitcoin into cash in a currency of your choice, such as dollars, euros or pounds.

Another benefit of Bitcoin gambling is that it allows people to bet where bank-processed payment gambling is banned. While this may still be a bit of a grey area, there are many Bitcoin gambling providers launching with the intent of only using cryptocurrency. Lastly, there are two other main advantages which are contributing to the rise of Bitcoin gambling:

1. Security

Security online is one of the things people worry about most. General browsing security can cause anxiety and stress, throw in money into the mix and the stress levels are taken up a notch. But with cryptocurrencies, it eliminates the doubt and takes the risk away from the consumer.

This allows trust to grow and makes people feel more comfortable about their activities online. BTC offers people the chance to gamble without disclosing sensitive bank or cards details. So their finance whereabouts remain secure and anonymous. The top 7 cryptocurrencies that are most popular and deemed the most secure are: Bitcoin, Litecoin, Ethereum, Zcash, Dash, Ripple and Monero.

2. Bonuses

Gambling and bonuses go hand in hand and no customer ever signs up to an online casino without being offered a bonus. This is no different with Bitcoin casinos. Casino providers are now offering promotions and bonuses in Bitcoin, often as a deposit match offer on your first deposit. This means as a new player you can get double your ‘money’ plus free spins to use at the casino site.