Crypto and Blockchain Impact on Online Casinos - Coindoo
Blockchain Impact on Online Casinos

Crypto and Blockchain Impact on Online Casinos

Editorial Team Avatar
Jan 13, 2023
13 min reading time

Over the last couple of decades, technological advances have revolutionized the gambling industry. 

Thanks to significant improvements in Internet connectivity, graphics, games, and other breakthroughs, the online casino world has created a massive gambling community. This has not been without issue, but it has been one of the most significant areas of growth we have seen to date.  

The introduction of live casinos, as well as many different apps, allows players to have an experience that is as close as possible to being in a casino building without having to leave the house. 

The pandemic has shown how important people find it to be able to access their favorite games when restricted by location, and the best bitcoin casinos of 2023 took advantage of that to set clear industry benchmarks.  

Now we see a new introduction of cryptocurrencies; more real money online casinos with favorable RTP rates accept digital currency as a payment method, changing the casino experience for the better and making it safer

What Is Cryptocurrency? 

Cryptocurrency is a digital currency that can be used to buy and sell goods and services. It uses advanced encryption to protect financial transactions and control the creation of new units.  

One of the massive advantages of cryptocurrency for the gambling industry is the online safety and security features far superior to anything we have been able to access before. Many casinos are already accepting cryptocurrency in the UK and other countries or continents, such as Zamsino in Australia or GClub in Asia.  

It won’t be long before it becomes a usual way of gambling because customers can highly trust the entire process. 

Distinction Between an Online Casino That Accepts Bitcoin and a Complete Bitcoin Casino 

Firstly, it is important to know there is a difference between an online casino that accepts Bitcoin and a complete Bitcoin casino. The former is a service that accepts BTC as one of its payment methods alongside other traditional methods (credit card, PayPal, bank transfer, etc.). The latter only allows players to pay with Bitcoin or other cryptocurrencies. 

Here are a couple of examples: 

  • A traditional online casino that accepts BTC: When you make a Bitcoin deposit into your casino account, it will be automatically converted into the fiat currency the casino uses (USD, GBP, EUR, etc.). 
  • Bitcoin casino: When a BTC deposit is made, the currency used when playing will stay as Bitcoin. This means any winnings will also be paid out in digital currency. 

These online casinos have been built for people who prefer BTC and are used to gambling with it.  

Currently, when it comes to online casinos and offers for real money, players use fiat currencies (that is, traditional controlled currencies such as the pound, dollar, or euro). Payment methods such as debit/credit cards, prepaid cards, and e-wallets are used to transfer these currencies to and from a player’s casino account. 

When visiting a Bitcoin casino, you can play games you usually would in a traditional online casino, such as roulette, slots, poker, blackjack, and many more. Remember, the idea of both casino types is to have fun and play your favorite casino games. 

How Cryptocurrency Is Changing the Online Casino Landscape 

While fiat currencies have long been the norm for online gambling, cryptocurrencies are becoming the preferred option for many players. This is because they offer many benefits that you don’t get with fiat currencies, such as: 

Enhanced Security 

One reason online casinos were slow to take off was customers’ reluctance to submit sensitive financial information. The internet was, and still is, fraught with online threats. This made potential casino players wary. 

However, digital currency came in to resolve this issue. Cryptocurrencies are based on the blockchain, which comes with enhanced security features. When using crypto, you do not need to place sensitive financial information on your casino profile. 

You would simply need to paste your wallet address to receive funds from the casino. This way, you become better protected against forms of hacks like phishing. 

As long as the bookmaker is licensed by a key authority such as the United Kingdom Gambling Commission or Maltese Gaming Authority, there’s comfort in betting with them and recourse in case of any issues. Meanwhile, crypto transactions are transparent, safe, and recorded on the blockchain. 

It is a great way to be able to deposit the amount you want in your online account, but you want to make sure you are using a reputable casino. So, be sure to find out more about safe bitcoin casinos

Upholding Anonymity 

Blockchain technology is also effective in maintaining gamblers’ privacy. It provides players with a wallet address that they can use to fund their wallets.  

Furthermore, several crypto casinos allow users to play anonymously.  

Low Expenses 

In terms of expenses, cryptocurrency is the option that best minimizes costs. Credit or debit cards attract high charges when depositing or withdrawing funds from an online casino. 

On the other hand, using digital currencies cuts out the high fees. This is because no intermediary is trying to profit from your transaction. Blockchain’s decentralized structure ensures that transaction fees, if any, vary depending on network usage. 

Since digital currency lowers the expense burden on both casinos and players, the cost associated with deposits and withdrawals from casinos is significantly reduced. 

Increased Convenience 

Even if you live in a country with gambling restrictions, crypto casinos allow citizens from all nations to enjoy games. Conventional casinos can’t do this because they’re limited, among others, by payment methods from jurisdictions that don’t allow gambling. 

However, with crypto casinos, you can access your funds without any hassle. Digital currencies allow users to bypass political and geographical limitations. All you need to play a game in a casino is an internet connection. 

For this reason, crypto betting is an alternative for users not only in the states that still forbid betting within their borders but in any jurisdiction worldwide with anti-betting legislation. 

Transaction Speed 

One of the most annoying aspects of iGaming, even if you want to play Roulette online or other casino games, is the number of hindrances players must go through before they can cash out the rewards they’ve won. This issue is even more pronounced if the casino operator is based in a different country.  

When a bettor makes a successful punt at a casino or sportsbook site, their elation is prone to be tempered by the fact that, even if they choose to withdraw their winnings immediately, they will not receive them very quickly.  

Anyone with experience in this regard will be familiar with the caveat “withdrawals can take 2-5 working days, depending on your bank”.  

This has deterred some casino players from switching from the online version of casinos and sticking with land-based ones. However, cryptocurrency breaks this by improving the transaction speed because, with crypto, there is no bank – there is just you and the casino – and the delay is shorter, usually non-existent. 

The blockchain is decentralized, and this holds for digital currencies. This means that no central or commercial bank is monitoring crypto and making the rules. 

Digital currencies like Bitcoin, Ethereum, and Ripple highly expedite the waiting time associated with fund transfers. 

Increased Level of Transparency 

One major factor that affects online casinos is the lack of trust between players and the house. Players don’t know what happens behind the game’s interface, even if it is a reputable online casino. 

Some casinos deliberately hide their data, including gaming results, winnings, and payout information. The house will always win. 

The iGaming sector would highly benefit from using blockchain because of its transparent nature.  

Blockchain has the potential to restore transparency to the online gambling industry that so many people have dreamed of experiencing. It is a highly transparent system, recording all the actions that players take on the platform. 

You can rest assured that you’ll always see the results of a game, the number of bets you place, your winnings, and the casino payout information. 

If a casino can display the true track history of a player, users may start to trust the system better. 

Crypto Makes Things Easier for Casino Operators Too 

As you can see, there are various ways in which players benefit from this new technology, but can we say the same about online gambling companies? In fact, we can sense that blockchain technology makes things easier for gambling operators in various ways. 

Most payment methods that use fiat currencies allow for chargebacks, but this is not the case in crypto’s case. 

Since crypto transactions are irreversible, crypto casinos cannot issue refunds or block transactions. Thus, users must be extra careful when making a deposit. 

Also, casinos that rely on cryptocurrency may end up attracting a solid player base because they utilize an open-source algorithm that is referred to as the “provably fair” algorithm.  

This technology is exclusive to cryptocurrency gambling and greatly increases the levels of transparency at the online casinos that implement it. 

When Will Bitcoin Casinos Accept Altcoins? 

The Bitcoin craze is changing the way that many retailers conduct business. Instead of allowing customers only to make purchases using cash, a major credit card, or a check, more retailers are allowing their customers to pay using Bitcoin.  

Many online casinos, such as NetBet online slots, have embraced Bitcoin as gamers have increasingly turned to it as a viable payment method. And with the increasing development of the crypto industry, many casinos nowadays also accept altcoins. 

We’re already seeing many of the world’s biggest Bitcoin casinos embracing altcoins. The majority accept cryptocurrencies like Ethereum, Litecoin, Dogecoin, Ripple, and Monero, but this is just the tip of the iceberg. 

Of course, they can’t accept over 5,000 coins in the same way they accept a dozen web wallets and instant payment services. Even the biggest and most trustworthy cryptocurrency casinos don’t have the will or the infrastructure to initiate something like that. 

But there are a few ways around this problem. One such method is to accept cryptocurrency exchanges instead of actual currencies. Rather than working with individual wallets, it allows players to connect to popular exchanges and transfer their balance across. 

In this way, they can technically deposit and gamble with every currency accepted on that exchange, essentially allowing them to use hundreds or thousands of different options in a single casino. 

This method is now being used in many of the best Bitcoin casinos. It has become the perfect middle ground, allowing such casinos to embrace all established and new cryptocurrencies without adding an endless list of wallets and transfer options to their cashier pages. 

TRON – An Altcoin That Is an Alternative to Bitcoin in Online Casinos 

However, among others, there is another crypto player in town that wants a piece of Bitcoin’s casino business. TRON (TRX) is emerging as a viable alternative to traditional online casinos and Bitcoin ones. Over the past years, TRON gambling has enjoyed significant growth gains, with an increase in TRON casino decentralized applications (dApps) becoming available. 

If you’re unfamiliar with TRON, it was developed by BitTorrent CEO Justin Sun. Since its inception in 2017 through the Singapore-based non-profit organization Tron Foundation, the crypto has become an alternative to the more established Bitcoin and Ethereum. 

One of the remits of TRON is to create, develop, and promote a decentralized global digital gambling and entertainment system. So far, digital currency has generated plenty of interest in the entertainment industry because it is affordable and an excellent way to share digital content. 

In terms of decentralized apps (dApps), TRON is becoming an increasingly popular choice for casino developers. Players also value casinos leveraging TRON because they boast swift account setup and more straightforward buy-in methods. Like other types of casinos, standard games such as slots, roulette, blackjack, and poker are available. 

New Developments in Online Casino Payment Methods Also Making Waves 

Still, some online casinos do not want to implement crypto payments on their platform. As such, they have started using other payment methods considered new developments in the market. 

It’s not just crypto that has been making waves, however, as even older payment systems have been seeing forward progress recently through the growth of related infrastructure.  

There are, for example, casinos that accept newer payment methods like eChecks – and with them, there has been an increased focus on casino news and review websites, such as SuperCasinoSites or kasinot.  

As a more widely accepted form of payment, this helps guide a broader range of players to exemplary service. 

The Future 

This is just the beginning regarding how cryptocurrencies will impact our lives and environment. The key factor to note is the number of years cryptocurrencies will take to be accepted as a mainstream currency solution and, consequently, blockchain-powered technology and related applications to be integrated into every facet of our everyday lives. 

Although generally, online casinos have managed to keep people reasonably safe, there have been some scandals. Also, fraudsters are setting up fake casinos to try and con people out of money. Anywhere you use personal data online generates a security risk for that information.  

Cybercrime remains high and is a bit of a two-edged sword because the more we use online services and advanced technology, the more cybercriminals will see this as a challenge and work harder. However, it is still much more difficult for them to hack into data files than smash a front door and steal your possessions. Cyber currency acts as a double lock to the front door and leaves the cybercriminals blind as to your identity or trail back to you. 

In Conclusion 

Cryptocurrencies and blockchain technology are having an effect on the casino industry. Still, the influence is arguably most profound in the online slot world, where companies, developers, and projects embrace technology. 

Blockchain and cryptocurrencies took the world by storm in 2017, and an increasing number of businesses, governments, and projects are looking to incorporate or use these technologies.  

Online casinos have also gotten on board with this trend, and more of them have started accepting payments in cryptocurrencies. 

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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