How Blockchain Can Change The Online Casino Industry

How Blockchain Can Change_1

June 13th, 2019   |   Updated on June 17th, 2020

When online casinos first appeared, nobody took that seriously. Playing casino games on the internet and sending money to a “website” sounded way too crazy. However, online casino sites changed the gambling industry forever.

Nowadays, they are way more popular than brick-and-mortar casinos, and people are playing even on their mobile devices. In short, online casinos made a revolution.

Now, after nearly 20 years later, another revolution is about to start, thanks to the blockchain technology. And this time, it will literally create a new form of online gambling – blockchain technology has the potential to do that and much more. So, what exactly is it and how can it change online gambling? Let’s take a closer look.

Blockchain Casinos: Every Player Is A Server

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When we say “blockchain casinos”, we do not mean online casinos that accept Bitcoin. Cryptocurrency support has nothing to do with blockchain technology.

There are already hundreds of bitcoin casinos only accepting cryptocurrencies, but they are not the ones who will make this revolution.

Let’s talk about blockchain a little bit, in order to explain how it can change the rules. You can think blockchain as a digital database, which can keep all kinds of data.

The first thing that comes to mind is financial transactions, of course. The blockchain of archaic cryptocurrencies (Such as Bitcoin) are able to do that and only that. You can send and receive money to any Bitcoin user over the blockchain, and this is the only thing you can do.

Modern blockchains, however, can do much more. They are still a database, but in addition to financial transfer data, they can store application files too.

These are called DAPPs (decentralized application), and they are literal programs that run on the blockchain itself.

For example, you can develop a simple calculator program and upload it to the blockchain: After that, any user will be able to access that calculator without downloading it.

Moreover, there will be no servers – the app will be stored on the blockchain itself and run on the PCs of every user at the same time. In other words, users will turn into servers.

And what do you think online casino websites consist of?- Image files. Database files. Executable programs. Lots of computer code. All of these and much more can be placed on a blockchain and run forever, without a physical server.

So, What Do We Get In Return?

Blockchain Technology

Well, with online casinos that run on the blockchain, we will get the following things:

  • No censorship. If there are no physical servers, you cannot censor a website. And it is impossible to censor a blockchain – as long as there is an internet connection, anybody can reach a blockchain. Online casinos will be free from government censorship.
  • True freedom. As you already know, blockchain technology, even the archaic ones, offer unmatched anonymity and privacy. Modern blockchains are much better in this regard – you can play completely anonymously, send and receive cryptocurrency without anyone tracking you. Nobody will know where you are, what you are doing, and how much money you have won – it is impossible to track these data.
  • No licenses. Getting a regular online casino license costs hundreds of thousands of Euros/Dollars. And the only thing a license does is giving permission to accept members from a specific country. Well, guess what: If everybody is anonymous, you can accept any member from any country. There will be no need for a license. You can use that budget to improve your service quality.
  • Instant withdrawals. Each casino game is actually a smart contract: The operator deposits the potential winnings to the blockchain beforehand. The player starts to roll the reels. And if he wins, the blockchain automatically releases the prize amount. That’s it – no “verification” and no “approval” needed. You will get your prize delivered to your blockchain address right after the moment when you score a winning.
  • True fairness. Thanks to a feature called “provably fair”, you can check the RNG (random number generator) results of each roll and confirm that it is truly random. Doing is check is easy, and every player can complete in seconds. So you can always be sure that the games you play are truly random. And guess what, there will be no need for “independent” audition agencies such as eCOGRA and RTP reports – every player will become an auditor.
  • Lower house edge rates. The average house edge rate of a regular online casino is around 5%. Blockchain casinos, however, offer as low as 1%. In other words, their overall RTP rates are 99%. You will win more often and lose less money in the long run.
  • Complete multi-platform support. There won’t be any need to look for the “mobile version” of a specific slot game. You won’t feel the need to switch to your PC just to activate a feature. Blockchain supports all platforms and offers the same performance and features.

In short, we are about to see a true revolution in our lifetime: Licensing agencies and audition companies will disappear, as they are no longer needed.

Online gambling will truly become a global thing, controlled by nobody but the blockchain itself. ID verifications and waiting for days to get your winnings will be things of the past – as soon as you score a winning, you will get the prize too.

And more importantly, game developers won’t need online casino sites to connect with their players. Instead, they can upload their games directly to the blockchain and become a casino of their own.

There are thousands of online casino sites on the internet as of today, but they are just an intermediary: No casino game developer is able to offer its games directly to the users.

The blockchain technology will change this too. We are quite excited to be a part of this revolution, and we cannot wait to see things change: In the near future, the rules of online gambling will be rewritten.