Blockchain Usage in Online Gambling: Benefits, Stats & More
The online gambling industry continues to become increasingly popular over the years.
13:57 12 June 2021
However, blockchain technology has evolved even more rapidly as many industries seek to integrate it into their operations.
One of the latest industries to seamlessly adopt blockchain technologies is the online gambling industry. This is in part due to the growing demand for players for online casinos that accept Bitcoin.
And we cannot blame these punters. Blockchain casinos and sportsbooks are transparent. Also, no other payment method quite compares to the speed of cryptocurrency transactions.
Henceforth, we’ll examine the current trend set by blockchain usage in online gambling. And more than that, you will also learn how blockchain helps to promote trust and fair play in the online gambling space.
Blockchain and the Gambling Sector
Many people have participated in gambling since the industry started offering online services. And the love for online gambling continues to wax stronger.
As of 2019, the total market cap of regulated gambling, according to market research, was $450billion. Interestingly, more than 11% of the revenues come from online gambling.
Cryptocurrencies and digital assets are continually gaining traction among gamblers. And it’s safe to say that digital currency is responsible for the widespread adoption of blockchain technologies in online casinos.
Cryptocurrency-based online gambling sites are now more favorable in the eyes of punters. For instance, a report shows that crypto gaming companies experienced up to a 50% surge in users in March.
These crypto-based sites continue to gain popularity. All thanks to the ability of blockchain to ensure transparent and secure transactions.
These sites also offer better house odds when compared to traditional gambling sites. The availability of provably fair games also ensures easy auditing for more reliability.
Benefits of Blockchain Technologies in Online Gambling
The online gambling world is marked by distrust when it comes to transparency. However, the adoption of blockchain technology changes the picture.
The blockchain serves as a transparent ledger. It is immutable and increases the confidence of users during transactions.
That’s not all. Several benefits are associated with the integration of the blockchain into online gambling. We will outline some of the benefits here.
Creates a system of trust
The blockchain helps to solve the underlying issues of trust in online gambling.
As mentioned earlier, casino operators and players have a long history of distrust. Players often perceive the gambling industry as unfair, especially in terms of payouts.
Since casinos earn when players lose, several people tend to believe some rigging is involved in favor of the casinos.
In crypto casinos, blockchain utilizes cryptography and other technologies to ensure that game outcomes and betting odds are not forged. More so, payouts are always fair and quick when the blockchain is involved.
The blockchain protects users from questionable practices by the operators, such as the lack of randomness in the game outcomes.
With the blockchain, users can easily keep tabs on every game and bet. Furthermore, once a game feature is manipulated, every player will see it in real-time.
Furthermore, user details remain secure, and there is no means of randomly stealing data from gambling websites built on the blockchain.
The major issue with bitcoin casinos is the safety of your crypto wallet, which is very secure as long as you protect the wallet’s private key.
Ensures user anonymity
Most gamblers prefer not to reveal their identity when they gamble online, and the blockchain grants them that privacy. You only need to get a crypto wallet to start playing in a blockchain-enabled online gambling site.
When you use your cryptocurrency wallet, you don’t have to enter your bank details on the gambling platform. Instead, you may register your user name under a pseudonym since most crypto casinos have flexible KYC rules.
Ease of transactions
No player enjoys the delay in carrying out transactions. Unfortunately, bank transfers and many other payment methods often cause delays due to some processing modalities.
Another aspect of transacting that players do not enjoy is the sometimes unbearable bank charges.
The blockchain also proves helpful here as it eliminates the long processing times associated with payment initiations. As a result, excess charges by banks and e-wallet providers also become things of the past.
Eliminates cross-border discrimination
Integrating the blockchain into online gambling ensures global acceptance. Different players worldwide can stake on preferred games using the accepted cryptocurrency.
Players will not have to visit a casino where there are limitations on payments. In addition, cross-border monetary restrictions do not affect payments with cryptocurrencies.
The Future of Blockchain in Online Gambling
It is impossible to overlook the remarkable achievement of blockchain in the gambling industry. The many emerging technologies of the blockchain will continue to change this industry in the coming years.
The blockchain has the potential to ease up some online gambling issues. Thus, it will make online gambling more accessible to players.
It also benefits the casinos, as it attracts more players to the platform and reduces their operational costs significantly.
Blockchain is one of the many technologies driving the current trend in online gambling.
The technology has several benefits in store for gamblers and operators alike. These include providing a more secure, transparent, and fair platform for players to wager their bets. In addition, crypto transactions powered by the blockchain are also fast and hassle-free. Besides, it will also eliminate questionable practices and ensure transparency in the gambling industry.
What’s more? Blockchain technology is very much young and full of untapped potential.
Also, every major project built on the internet is fast becoming decentralized. Therefore gambling operators that want to position themselves for success in the foreseeable future should seriously consider adopting blockchain.