TMCnet Feature Free eNews Subscription
June 17, 2021

Why Casinos are Integrating Blockchain Tech to Accept Crypto Payments



There are many gaming sites, casinos, and open-source lotteries available for players on the Internet. However, most users are usually skeptical about these sites and assume to be scammed because their return ratios are often kept a secret.



Many online casinos are integrating blockchain technology to accept cryptocurrencies from players to solve this bias against them. Cryptocurrencies like Bitcoin have become popular in the last few years. But that is not the only reason why an online Bitcoin casino has started accepting cryptocurrencies.

They have started using blockchain tech to accept payments because it is advantageous to them as well as their customers. The consumer benefits also ensure more business for the casino.  Let us look at some of those advantages enjoyed by online casinos.

Fair and Transparent Transactions

The best advantage of using blockchain technology for online betting or gambling is that it allows the much-required transparency in transactions. That means players can see how the site is processing their transactions. Even when they lose money, they can monitor when it goes into the system.

They just need to enter the bet ID number along with some other information to verify the details instantly. They will get to know if the bet's outcome was decided by random numbers or was tampered with by anyone else.

Verification of bets is also possible for regular online casinos, but players would have to hire third-party testing labs for that. The transparency benefits the casino as well because it is good for their reputation and allows them to attract more people to gamble on their website.

Secure Payments

Blockchain technology is quite complicated to understand for most of us. Think of it as a growing chain of data continuously adjusted and updated while being interlinked with cryptography. The transactions are decentralized because its database is made of information connected with chain blocks.

Decentralized payments also mean that both casinos and players can avoid hefty fines levied by third-party financial or government bodies. Since the system cannot be changed or tampered with, the possibility of an authorized breach is almost impossible. Due to these properties, blockchain technology has proved to be quite beneficial to the finance industry, and therefore, online casinos as well.

Financial Privacy

Players can maintain their anonymity while using cryptocurrency on online casinos, which helps them keep things private. Even though Bitcoin transactions are not completely untraceable, some other cryptocurrencies maintain complete secrecy.

Monero is one of the most sought-after currencies for online casinos, while XMR ensures that third parties cannot access personal financial data. That means players can indulge in online gambling without the fear of other people learning about their gains and losses from playing on online casinos.

Better Odds for Players

Every casino is a business that needs to make a profit from the customers. Contrary to popular belief, casinos do not need to cheat to make money. Every game in a casino is designed to guarantee that the house always wins eventually in the long run. Regular casinos have a house edge ratio of 1% to 15%.

However, crypto casinos operate with a lower house edge that varies between 0.5% to 3% because the cryptocurrency they hold increases in value. Moreover, blockchain technology allows online casinos to reduce their house edge costs, such as maintenance or salaries.

The lower house edge enables them to attract more players to their website. Accepting crypto payments using Blockchain technology also ensures better accounting for online casinos.

Lack of Legal Restrictions

Online gambling is not yet legal in several states as well as countries. That means financial institutions, including many American banks, may refuse to process transactions from online casinos. However, there are no such legal restrictions for crypto-based gambling on online websites.

Online casinos cannot be stopped from accepting deposits or making payments in cryptocurrencies, and they will not have to face any legal consequences for doing so. As we mentioned, the transactions are not processed through third-party financial institutions.

That means the players or casinos will not link their credit cards or pay transaction fees. There are some fees that need to be paid, but they are quite low compared to bank charges. Also, cryptocurrency is not recognized as real money in many states of America, which means it is not subject to taxation.

As we can see, accepting payments using blockchain technology has removed some of the major hurdles that prevented players from indulging or enjoying online gambling. There are several advantages as well that crypto-based online casinos enjoyed over the regular ones.

Some vulnerabilities and disadvantages exist in the early stages. But in the long run, the profits outweigh these challenges by a great length. That is why more and more online casinos are adopting blockchain technology to accept crypto payments.



» More TMCnet Feature Articles
Get stories like this delivered straight to your inbox. [Free eNews Subscription]
SHARE THIS ARTICLE

LATEST TMCNET ARTICLES

» More TMCnet Feature Articles