Crypto currency Adoption in Online Gambling: Integration of cryptocurrencies into online gambling platforms

Last updated by Emmanuel Omoloyin

at 26.06.2024

In recent times, the online gambling industry has experienced a transformative change with the introduction of cryptocurrencies. Traditional gambling establishments are quickly embracing this digital evolution, leading to the creation of crypto casinos that provide exceptional advantages to both operators and players alike.

Given the prevailing trends and the increasing fascination with cryptocurrencies, the topic of creating a Bitcoin casino is becoming increasingly relevant. In this article, we will discuss our expertise in developing crypto casinos and provide a detailed guide on the necessary steps to establish a crypto casino.

Benefits of Using Blockchain in Gambling

A report by Global Market Insights Inc. projects that the online gambling market will surge past $160 billion by 2026. This growth has been fueled by increased smartphone and IoT usage, advancements in internet infrastructure, and the integration of blockchain and cryptocurrencies.

Online casinos, however, continue to grapple with issues such as money laundering, gambling addiction, and operation in countries where gambling is prohibited. They also face challenges related to regulation, taxation, and adherence to local and international laws. These issues are largely due to the centralized nature of most online casinos. Decentralization through blockchain technology could potentially resolve many of these concerns.

Exploring the initiation of a bitcoin casino and the benefits blockchain technology can provide:

Transparency

A common skepticism surrounds online casinos, with many believing that the systems are rigged to ensure players lose and profits are maximized. Blockchain technology introduces a level of transparency that allows for the auditing of all transaction histories. It employs open-source, crypto-powered algorithms that enhance the integrity of random number generation, ensuring that any potential fraud is easily detectable.

Security

Blockchain greatly enhances security, reducing the risk of fraud and securing transactions. It also safeguards data from being altered or deleted, ensuring that the record of wins and payouts remains transparent, protected, and unchangeable.

Payout Process

The process of withdrawing winnings has often been problematic for online casino players, typically involving several intermediaries and causing delays. Blockchain technology simplifies this process through the use of smart contracts in the gambling industry, which automatically execute transactions such as money transfers once predefined conditions are met. This makes the payout process both fast and straightforward.

Anonymity

Blockchain technology enhances privacy by allowing players to keep their identities confidential, ensuring that casino operators do not have access to personal information. Additionally, it prevents the dissemination of personal data to third parties.

Understanding Online Crypto Casinos

Before diving into the establishment of a crypto casino, it’s essential to comprehend what these casinos are and their operational mechanisms. This knowledge is crucial for creating the appropriate business infrastructure needed for casino development.

Crypto gambling platforms that accept cryptocurrencies typically fall into one of three categories:

  1. Crypto Casinos: These include games like blackjack, slots, video poker, craps, baccarat, and other table games.
  2. Crypto Poker: These are specialized poker rooms catering to cryptocurrency users.
  3. Crypto Betting: This category includes betting on politics, financial markets, and sports events.

In essence, a crypto casino is an online platform based on blockchain technology that allows deposits and withdrawals in various cryptocurrencies, alongside traditional fiat money transactions. A key feature of crypto casinos is the use of smart contracts to secure bets during gameplay or to facilitate payment processes. This automation ensures the procedures are both efficient and trustworthy.

Creating a Crypto Gambling Website

Let’s explore the steps involved in launching a crypto casino, which closely resemble those required for a traditional gambling platform. These steps include:

Software development represents the most complex aspect of this endeavor, making the selection of a seasoned blockchain development team essential. It is critical to choose developers who are well-versed in the specifics of the industry and can deliver your project with an optimal balance of cost and quality. To ensure you make the right choice, review the team’s portfolio, discuss your project with their specialists, and verify their experience with similar projects.

Once you have chosen a team for developing your crypto casino software, the next crucial step is to decide on the features your blockchain casino will include. The selection of features is a nuanced decision as their number and complexity will influence the development timeline of your crypto casino. Moreover, the features you choose will define the attractiveness of your platform to users, affect their user experience, and thus, impact its popularity in the market.

Key Features for Developing a Crypto Casino

Here is a list of the most important and beneficial features to consider for a successful crypto casino:

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1. Cryptocurrency Support

Establish a robust financial infrastructure with an integrated cryptocurrency system that enables deposits using Bitcoin and other prominent cryptocurrencies.

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2. Fiat Currency and Payment Options

Offer platforms that support multiple fiat currencies and provide convenient payment methods, although integrating fiat currency typically involves registering the casino and obtaining a gambling license.

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3. Anti-Fraud Systems

Implement systems to prevent security breaches, keeping your platform secure and trustworthy.

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4. Real-Time Chats

Enhance user engagement by allowing players to interact, share ideas, and socialize via real-time chats.

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5. Live Dealer Games

Include live dealer games to replicate an authentic casino experience, adding enjoyment for users.

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6. Random Number Generator

Utilize a system that ensures game integrity by eliminating biases, thereby maintaining reliability and fairness.

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7. Multi-Lingual Support

Provide multi-lingual options to accommodate players in their preferred languages, enhancing accessibility.

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8. KYC System

Implement a Know Your Customer (KYC) system to gather comprehensive user data, enhancing security unless you prioritize anonymity as a key feature.

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9. Cross-Browser and Cross-Platform Compatibility

Ensure your platform runs smoothly across various browsers and devices (desktop, mobile, tablet) to provide a seamless gaming experience.

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10. Leaderboards and Achievement Badges

Motivate players by using leaderboards and badges that recognize and display player achievements and rankings.

Incorporating these features will not only enhance the functionality of your crypto casino but also increase its appeal and potential for success in a competitive market.

Legal Requirements for Crypto-Gambling

The regulatory landscape for crypto-gambling, much like the broader fintech environment, remains murky, with many grey areas. This ambiguity often leaves entrepreneurs uncertain about how to develop a crypto casino while navigating the varied and sometimes contradictory regulatory stances on cryptocurrencies. To ensure legal compliance, they are compelled to explore whether offering gambling services in cryptocurrency is lawful, if a blockchain casino requires licensing, and which countries’ players are permissible.

While there are no definitive answers to these questions, several important considerations about the legality of crypto gambling must be addressed before launching a crypto casino:

  1. There are currently no specific regulations stating that operating a gambling platform with cryptocurrency options necessitates a gambling license, nor that such a business is illegal. Thus, the practice is neither explicitly sanctioned nor outright banned.
  2. Increasingly, countries are beginning to view cryptocurrencies and blockchain services more favorably. However, no specific legislation yet recognizes cryptocurrencies as equivalent to real money. Consequently, traditional regulations governing fiat currency gambling are not necessarily applicable to crypto gambling services.
  3. Cryptocurrency transactions maintain a high level of privacy, making it difficult to trace the origin or purpose of the funds.
  4. Some well-known gambling jurisdictions, including Curacao and the United Kingdom, are already issuing licenses to casinos that accept cryptocurrencies, indicating a move towards regulatory oversight of crypto casino operations.

Is a Gambling License Necessary for a Crypto Casino?

Obtaining a gambling license is crucial for an iGaming business to secure a merchant bank account and conduct transactions with conventional electronic payment systems. However, when a casino operates exclusively with cryptocurrencies, all payment processing is handled internally without the need for third-party services. Since deposits and withdrawals occur almost directly between the player’s and the casino’s crypto wallets, the requirement to present a gambling license to financial institutions may not apply.

Understanding these aspects is essential for anyone looking to enter the crypto-gambling industry, ensuring they can navigate the complexities of legal and regulatory requirements effectively.