How Online Casinos Are Taking Full Advantage of Blockchain and Cryptocurrency

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In 2017, the global online gambling industry was worth $46.9 billion (£38.6 billion). By 2026 it is forecast to approach revenues of $125 billion (£103 billion). Driving this unprecedented growth is the evolution of technology, the rise of mobile devices, high internet penetration, and diverse payment options. Another driver of the online casino industry is the increasing adoption of cryptocurrency, including its underlying technology of blockchain.

Cryptocurrency and blockchain are starting to make an impact on the online gaming industry with the development of Bitcoin-based games such as CryptoKitties and the recently released My Crypto Heroes. These types of games show how digital currencies and gaming work well together. Now online casinos are slowly finding ways to adopt digital currencies and blockchain into their own games.

The online casino industry has already adapted to most digital platforms. Sandlot Games in their review of 888 Casino notes how the online platform has offerings on “mobile, tablet, Facebook, download, and instant play.” This means it has a vast scope in order to reach an online audience. With cryptocurrency and blockchain being the next big technological advancement, online casinos are taking advantage of the improved security, speed, and accountability of the technology. 

Online casinos such as King Billy Casino, RioBet Casino, and TonyBet Casino provide cryptocurrency and blockchain services. By adopting digital currencies, these sites are now getting what Forbes calls transactional benefits. These benefits include the universality of cryptos (meaning, it can be used anywhere), the ability to make transactions instantaneously, and the lowering (or even total elimination) of transaction costs. In this case, transaction costs are lowered because blockchain eliminates the need for third-party intermediaries. These intermediaries are middlemen, such as payment portals and banking services, which charge a certain fee for every transaction, including pay-outs. With blockchain, gamers can pay directly to the online casino. Similarly, they can receive their winnings almost instantaneously and in full from the casino. 

Additionally, transactions made through blockchain are far more secure as opposed to traditional transactions. An MIT Technology Review article on blockchain notes that the system is tamper-proof due to two reasons. First, there is a cryptographic fingerprint, called a hash that is unique to each block of information (a transaction in this case). Then there is “consensus protocol” where parts or nodes of the network “agree on a shared history.” Altering one hash will mean changing an entire chain, which makes an alteration near impossible to accomplish. 

Additionally adopting cryptocurrency and blockchain lets online casinos reach a whole new demographic of potential casino players. As Reif Ventures’ Josh Reif explained to Forbes, accepting digital currencies can help businesses “attract a younger demographic of people who prefer the simplicity and anonymity of crypto transactions.” As players won’t need to give bank details or personal information their identity can remain anonymous as they play.

Widespread cryptocurrency adoption will happen in the online casino industry soon. That the gaming industry and smaller casino sites have been able to adopt cryptocurrency and blockchain proves that. Blockchain and cryptocurrency represent the latest developments in the relatively short but already lucrative history of online casinos. These online gaming sites have certainly come a long way since the launch in 1994 of InterCasino. This was the very first online casino in the world. By 1998 online gambling revenue had reached $834.5 million (£686.4 million). Two decades later the online casino industry is as profitable as ever, with revenues in the billions. Innovations like blockchain and cryptocurrency will drive the industry forward even more.