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March 10, 2021

Gambling Tech Giant IGT to Introduce New Cryptocurrency Patent



With a market value that now exceeds a trillion dollars, even the most cynical have been forced to acknowledge cryptocurrency as a powerful financial instrument that is here to stay. Its legendary volatility can still take traders from zero to hero and back again in the blink of an eye. But one criticism that is leveled as much today as it was a decade ago is that there are few real drivers that that are likely to lead to mass adoption of crypto as a currency in the practical sense of the word.



Even that final barrier could, however, be shaken to its core by a new crypto patent from International Game Technology (IGT) The London-based gambling giant is typically at the forefront when it comes to technological innovation, so it has surprised few by leaping feet-first into the murky crypto waters.

Crypto and gambling

The online gambling sector has always been something of an outlier where crypto is concerned. While critics of Bitcoin and the like are always quick to remind us that people don’t use digital money to buy a coffee or to fill the car with gas, the online casino is somewhere that crypto has started to gain some traction.

In a virtual environment, transferring money from the real world to an online gaming account can be a headache. The idea of digital money for digital transactions, however, is an elegant one. There are then additional positives in terms of speed, security and anonymity that meant Bitcoin casinos started appearing way back in February 2014. Now, the new BTC-based patent is expected to address safety concerns with online gaming. This could have a positive effect on how Bitcoin is currently used online.

The IGT patent

IGT’s new patent makes it easy for casino gamers to transfer Bitcoin from an online wallet to a gambling account at an online casino. It’s a little like walking into a casino on the strip and converting dollars into betting chips, only it’s even quicker, it’s safer and it’s less cumbersome. An IGT spokesperson explained to Bloomberg that this is a classic example of the company having more than half an eye on the medium to long term future, saying: "IGT secured this patent to bolster its industry-leading patent portfolio in anticipation of any possible future direction in regulated gaming involving cryptocurrency."

The mechanics of how the patented technology works are still causing some speculation. So far, the best clue lies in the wording of the patent itself. It says, among other things, that: "instructions cause the gaming establishment component processor to escrow the amount of cryptocurrency, establish a line of credit based on the escrowed amount of cryptocurrency, and modify a balance of a gaming establishment account based on the line of credit."

The critical takeaway here is that up until the actual transfer takes place between the player’s digital wallet and his gambling account, gambling activities are financed by a line of credit at the casino itself. It is also worth noting that while the patent explains the mechanics of the transactions, it is silent on matters relating to fees and costs.

Bringing gambling into the 2020s

IGT might be a pioneering player in a pioneering industry, but there is sometimes something of a mismatch with the broader gambling public. Take a look in any casino in Las Vegas and many of the patrons would be more at home using a Commodore 64. The times, however, are a-changing and IGT anticipates that its proactive approach to crypto will help to drive that change forward.

In short, as gambling has increasingly moved into cyberspace, so the average age of gamblers has shown a marked reduction. While leisurely afternoons spent patrolling the Las Vegas strip might be more achievable for those of a certain age, anybody can log on to an online site during an idle five minutes.

Figures released by Statista suggest that casino gaming is more popular now than ever in the critically important 19 to 29 age range. It’s a market that every industry player will be looking to exploit, and with its crypto patent, IGT will feel that it is in a better position than most to do so.


 
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