Even though the blockchain technology that started the entire idea of cryptocurrencies dates back more than a decade ago, this technology became popular in the past couple of years.
Cryptocurrencies now are the most used form of online payment worldwide, which is why many industries including crypto gambling are trying to adopt this new technology.
But why is the casino industry so much into crypto technology?
Well, the first and most obvious reason is that the crypto market has grown into a multi-billion-dollar industry that opens up new opportunities for casino companies to earn money. Additionally, this new technology opens up many new features and makes the transactional process much easier.
With the casino industry being tech-forward, let’s look at all the reasons why many online gambling companies have decided to adopt cryptocurrencies.
How Do Casinos Use Cryptocurrencies?
Ever since cryptocurrencies became popular, casinos have looked for a way to incorporate them into their offerings. This technological adaptation led to casinos accepting Bitcoin, and other popular cryptocurrencies as a form of gambling.
Nowadays, people can play their favorite casino games by depositing and withdrawing cryptocurrencies.
So, the process of playing casino games remains unchanged, and the only thing that is different at the moment is the transactional process and currencies used for gambling.
Benefits that Come from Cryptocurrencies
In order for casinos to start a massive adoption of cryptocurrencies that requires a significant investment and transformation of their processes, this new trend must bring some benefits for casinos to encourage them to such change.
Since there is massive adoption of cryptocurrencies in the gambling space, obviously there are many benefits that come with this transformation, such as:
One of the key benefits of using cryptocurrencies for gambling for both gamblers and casinos is that it drastically reduces the costs of the process. For casinos, allowing crypto payments reduce the fees that they pay payment gateways for processing transactions.
The same goes for the players that enjoy casino games since they can now deposit and withdraw funds without a middle-man (bank) taking huge cuts of the amount for processing the transactions.
Another advantage that comes with cryptocurrencies is the decentralization of the entire transactional process. When gambling with regular cash, there are a lot of institutions involved in the process. For example, the money circulating in gambling is routed through a bank and the government, making it difficult to stay anonymous.
Since cryptocurrencies are decentralized and not dependent on any organization or government, the process does not require the approval of the bank or the government.
Additionally, the decentralized nature of gambling sorts out another important issue that followed online gambling for years.
Even though online casinos go through various checks just to make sure that all of the games that they offer give people a fair chance to win money, there is still a lack of trust in casinos where people think that big organizations are tweaking their games to increase their profits.
Crypto gambling and the decentralized nature of this technology will ensure the fairness of gambling.
One of the biggest benefits of cryptocurrencies is the improved transaction speed. This is a great opportunity for casinos to increase their popularity since they will offer almost instant transactions.
Traditional online gambling where all transactions are going through the bank has a poor processing time. In most cases, people can expect the money to land in their bank account in around 3-5 business days and sometimes even more if there is a bank holiday.
The use of cryptocurrencies allows casinos to process transactions blisteringly fast. Blockchain technology allows transactions to be processed in minutes instead of days, and the technology is constantly improving lowering the total cost and time of each transaction.
Crypto Gambling Allows Casinos to Bypass Geo-Restrictions
Even though online gambling is available in most parts of the world, there are still markets where such activity is considered illegal or people in certain areas are limited due to the availability of payment processors.
Since crypto gambling is a decentralized blockchain that operates independently, it cannot be impacted by any government or organization. On top of that, this payment system is universal and works in every part of the world.
This allows casinos to increase their online dominance and attract more customers by including other markets in the process.
Online gambling is a sensitive topic where a lot of people are concerned about hackers stealing their financial or personal information. However, blockchain technology changes everything.
This technology comes with a built-in security characteristic making it virtually unhackable. This means that people would feel safer when they gamble online.
Just because of the decentralized ledger, every system participating in the blockchain needs to be confirmed and recognized over what transactions have occurred. This also reduces the number of fraudulent transactions and since every transaction is recorded, the process also doesn’t allow money laundering.