Cryptocurrency and blockchain technologies are advancing at an incredible rate, and we are seeing more and more options for putting them to work every day. One of the most important industries into which this innovative technology has penetrated is the field of iGaming, also known as gambling.
Experts estimate that the global gambling industry will exceed $525 billion by 2022, roughly equal to $68 per person on the planet. On the other hand, cryptocurrency already has an established relationship with iGaming – currently about 50% of bitcoin transactions are in gambling.
This article will be of interest to true fans of cryptocurrency, blockchain technology, and those who want to understand the gambling industry. We will tell you how gambling and cryptocurrency are related and if bitcoin games are worth licensing.
What’s the secret to the success of cryptocurrency games
First, cryptocurrencies like Ether and Bitcoin make it much easier for people in jurisdictions where gambling is illegal to access the market. For example, in most Asian countries, any transactions involving gambling sites can raise suspicions from banks and, subsequently, from regulatory authorities.
But if we talk about Asian countries, there are generally difficulties in working with cryptocurrency: recently the Chinese authorities have imposed strict restrictions on cryptocurrency transactions, so many miners are moving to other countries, such as the United States, where the attitude to digital assets is more loyal.
The South Korean government has also become suspicious of cryptocurrency, with authorities seizing digital assets from wealthy citizens who are suspected of illegal transactions and tax evasion using cryptocurrency.
Second, there are many online gamers who simply do not want gaming transactions to show up on their bank statements, and cryptocurrency provides anonymity as well as easier deposits and withdrawals.Last but not least, the use of cryptocurrency and blockchain technology allows users to see that gaming is safe and fair.
Due to the fact that all cryptocurrency transactions are recorded within blockchain technology, and through the use of smart contracts, levels of trust in operators can be greatly increased and there is less room for dishonest gaming.
Bitcoin games – to license or not?
It is important to understand that a gambling license is absolutely necessary in order to open a corporate account with a bank or other financial institution and officially work with electronic payment systems.
However, when a casino website, for example, works with bitcoins, all payment processing can be done with the cryptocurrency without the involvement of third-party services.
Deposits and withdrawals are almost instantaneous, and bitcoins move directly between players’ bitcoin wallets and the casino. Thus, there is no need to provide a gaming license to any financial institutions. Therefore, it could be argued that when it comes to dealing in bitcoins, a gambling license is optional, or at least not a prerequisite for accepting payments.
On the other hand, many players perceive bitcoin casinos the same way as any traditional online casino. They want to be sure that they are investing their free funds in a safe and secure online environment and that their rights are protected by an independent authority. In this case, a valid gambling license from one of the licensing jurisdictions becomes an important marketing tool that promotes player loyalty and greatly increases the casino’s reputation.