Blockchain has been the hottest topic in tech over the past few years. The technology, along with closely associated cryptocurrencies, has been tipped by many experts to be set to revolutionize a range of different industries and sectors.
The iGaming industry is no exception, we’re already starting to see online casinos and gambling platforms integrate blockchain technology with their products and services. How is blockchain tech changing iGaming? Let’s find out.
What is the Blockchain?
Before we discuss how it will change iGaming, it’s important we clarify what the blockchain is. The blockchain is a type of digital public ledger where transactions can be recorded and stored. Each transaction is recorded as a block and added to a chain of previous transactions, giving the technology its name.
These blocks are sealed and protected from editing or tampering. This makes blockchain transactions extremely secure and, given that the blockchain is publicly viewable, it is easy to identify and prevent fraudulent activity.
Market Downturn Fails to Slow Crypto Gambling Industry’s Expansion
Despite the recent downturn in the crypto market, the crypto gambling industry has continued to expand at a rapid pace. This is largely due to the growing popularity of cryptocurrencies as a form of payment for online gambling and the increasing number of crypto-based online casinos and sportsbooks
In fact, the use of cryptocurrencies in online gambling has become so widespread that it now accounts for a significant portion of the industry’s revenue.
This trend is expected to continue, with many experts predicting that the crypto gambling industry will continue to grow in the coming years, even as the crypto market experiences ups and downs.
According to a report published by SoftSwiss in May 2022, the sum of bets placed using digital coins in Q1-2022 more than doubled compared to the first quarter of 2021, showing an impressive +116% growth
Commenting on the numbers, SoftSwiss COO Andrey Starovoitov explained that it all relates to the fact crypto gambling have already transitioned from the status of ‘novelty’ to that of a new stable and promising line of business for the gambling operators that can have the technical infrastructure to support it
“Those brands that have adapted to these conditions and allowed their players to use all the benefits of cryptocurrencies have an advantage such as wider opportunities for operation and, accordingly, a wider audience,” Starovoitov went on to explain as he added that he sees this as a trend destined to continue in the longer-term.
“The stronger regulation of traditional casinos will definitely attract new operators to the crypto gambling niche. In the next couple of years, we will see active growth in this market segment as most current leaders will join the niche.”
Additional Payment Methods
For players looking to enjoy the games and products available at modern online casinos, they must first add balance and top up their accounts. This can be done through a variety of different methods, typically bank transfers, credit card, and debit card payments. However, these methods can often process slowly, and can even come with additional charges and fees.
By integrating blockchain technology, online casinos can accept cryptocurrency deposits. For example, online bitcoin casinos can accept bitcoin payments as well as payments through traditional means.
Blockchain-based payments are far faster than traditional methods, often taking a number of seconds to process. What’s more, blockchain is decentralized, meaning that it does not require oversight by a governing body. This means that crypto transactions are free from additional costs and charges, even for cross border payments, making them perfect for the iGaming industry.
An Expansion that Goes Beyond ‘Bitcoin’
When it comes to handling payments via cryptocurrency, it’s worth noting that there seems to be also a growing trend in bringing Alt-Coins into the fold, with more and more operators widening the number of cryptos accepted on their platforms.
While Bitcoin remains the dominant cryptocurrency for online gambling, players are increasingly using other cryptocurrencies such as Ethereum and Litecoin to place their bets.
According to the same data from Q1 2022, the top three cryptocurrencies used in online gambling were Bitcoin, Ethereum, and Litecoin, with Bitcoin accounting for the majority at 72.8%.
However, Ethereum and Litecoin made up a significant portion of the remaining share, with 13.45% and 6.45% respectively. This demonstrates that gamblers are diversifying their cryptocurrency holdings and are not solely relying on Bitcoin for their online gambling transactions.
When it comes to depositing and withdrawing money from an online casino, users are often required to share sensitive personal information, including their contact and financial details. Unfortunately, this information is highly sought after by scammers and cybercriminals, who use a variety of tactics to exploit vulnerabilities in websites and gain unauthorized access to player data.
As a result, online casinos must be diligent in safeguarding their users’ personal information and implementing robust security measures to protect against potential data breaches.
Despite the risks, many online casinos have made significant strides in ensuring the safety and privacy of their users’ personal information, providing a secure environment for online gambling.
Given the blockchain’s security and anti-fraud capabilities, it’s no wonder that the technology is being rapidly adopted by iGaming companies. By offering players improved safety and security, online casinos and gambling platforms will be able to attract new customers and retain existing ones.
When it comes to online gambling, games are the most important thing. Whether it’s slot machines, blackjack, roulette, or poker, players have come to expect a wide variety of high-quality games to choose from.
Blockchain technology has given rise to a number of new games, with unique features and prizes on offer. By offering players the chance to wager with and win digital currencies like crypto and NFTs, online casinos can target new and emerging demographics.
Blockchain is changing the face of a range of different industries, iGaming being no exception. As the technology continues to improve, we can expect to see more and more online casinos using it in the future.