Tech

The Impact Of Blockchain And Cryptocurrency On The Gambling Industry

Blockchain and Cryptocurrency

Published on December 20th, 2021

The internet first gave birth to the idea of online gambling back in the mid-90s. Back then, not too many people were keen on the idea of spending their hard-earned money on websites that they couldn’t fully trust or understand.

Now, just a couple of decades later, the online gambling industry has ballooned to become one of the most lucrative markets in the world.

With each passing year, more and more people are hopping onto online casino platforms to place their bets on digital versions of traditional casino games. And this is a trend that is prevalent in many different parts of the world.

For example, Finland has a very healthy casino industry that’s worth more than €2 billion. In 2020 alone, casinos in Finland managed to generate revenues of around €805 million, which was five percent more than what they generated in 2019.

There are various new online casinos or uudet nettikasinot that bring in more players every day through aggressive marketing and promotions to go along with immersive gameplay and easy payment options. In fact, that’s a major contributor to the gambling industry worldwide: the ease of payments.

And there’s one particular development in the field of technology that’s making online payments in the online casino industry a lot easier: cryptocurrency.

When real-money betting first started taking place over the internet, people were merely relegated to the use of fiat money on online casino platforms.

Although, there has been a dramatic shift in the global financial market and it has a lot to do with a blockchain technology called cryptocurrency.

While crypto has been around for quite a while, it’s only recently that the technology has started emerging on more mainstream applications. One example of such application is through the online gambling industry.

There are typically two kinds of casinos online when it comes to the kinds of transactions that they are able to entertain. First, there are casinos that only exclusively deal in cryptocurrency.

These casinos typically have users determine their currency or coin of choice. Then, users would be allowed to place bets and withdraw any potential winnings to a dedicated wallet or preferred crypto platform.

There are also hybrid casinos which both deal in terms of crypto and traditional fiat money. Typically, Bitcoin is still the most widely accepted crypto coin on these kinds of sites.

However, any winnings or deposits made within these hybrid casinos are subject to a conversion by the payment operator.

So, the platforms typically still deal in fiat money with some cryptocurrency integration for ease of access and conversion.

While this is an upward-moving trend, the vast majority of online casinos in the world still only support traditional fiat money.

One of the biggest selling points of using crypto while gambling online is the anonymity and privacy. Since crypto runs on blockchain technology, that means that any transactions that are made are done so without the supervision or regulation of any governing bodies.

Cryptocurrency is a technology that was originally designed to be a decentralized form of our incumbent financial system.

That’s why many people who want to maintain a certain sense of discretion and anonymity with their online gambling activities can benefit greatly from using crypto as a form of payment and withdrawal.

Another way that crypto has impacted the online gambling industry is through the ease of payment for crypto owners.

Unfortunately, many online casinos are unplayable for people all throughout the world due to complications brought about by the payment process. Again, fiat money is regulated by governing bodies.

This means that certain transactions may or may not be deemed legal. With cryptocurrency, there is a lot more freedom and mobility thanks to the lack of regulation.

Essentially, anyone with an internet connection in any part of the globe is free to transact with their cryptocurrencies however they see fit.

This is a great workaround for citizens of countries or states that make it difficult for them to pay or withdraw money on online gambling platforms.

At the end of the day, it remains to be seen how else cryptocurrency and blockchain technology will impact the gambling industry.

But many experts seem to believe that the influence of these new financial devices will greatly impact the direction of the industry moving forward.