The advent of cryptocurrency online casinos marked a breakthrough in the gambling industry. Cryptocurrencies have contributed to an increase in casino clientele, as they ensure anonymity and secure transactions.
Today, receiving winnings and making deposits in online games can be done quickly and conveniently, with guaranteed protection of funds from third parties and personal anonymity. The most optimal way to do this is by using cryptocurrencies.
The process of integrating digital assets into casinos began more than 10 years ago, with Bitcoin being the first available cryptocurrency.
The Emergence of Bitcoin and Its Further Potential
Bitcoin is a decentralized payment instrument, not linked to any bank or financial organization. Since its introduction to the market in 2009, Bitcoin has become an ideal medium for online gambling transactions. The only problem is the lack of legalization of Bitcoin as a payment method in many countries around the world.
Nonetheless, the advent of crypto technologies has led to the widespread adoption of decentralized payment methods and the formation of a larger number of cryptocurrency online casinos.
The First Cryptocurrency Casinos
The online gambling market took some time to adapt to the possibilities opened up by the use of cryptocurrencies. The first to embark on a crypto-experiment was the betting site SatoshiDice, named, obviously, after the mysterious creator of Bitcoin, Satoshi Nakamoto. This namesake crypto-casino was launched in 2012, three years after Bitcoin's technical specifications hit the internet.
The casino allowed players from around the world to place bets using Bitcoins and play their favorite games without registration. Nothing was required except a BTC wallet. All bets were made in the form of BTC transactions, with separate addresses for each payout multiplier. The first crypto-casino caused a sensation and enjoyed immense popularity. However, a year after its launch, it had to cease supporting players from the USA due to a number of legal issues.
Nevertheless, SatoshiDice's revolutionary use of Bitcoin shook up the online gambling space and set an example for many gaming sites. Following the first crypto-casino, hundreds more emerged, and in recent years there has been a real boom in the crypto-gaming sphere. Now, Bitcoin is often used as a payment method even in many traditional casinos.
Over time, gambling operators worldwide recognized the advantages of decentralizing payment platforms and began using several other currencies, including Ethereum, Ripple, and Litecoin. It is noteworthy that with each passing year, the number of cryptocurrencies is growing, as are the casinos that support fast and transparent financial transactions.
Players from countries where gambling for money is prohibited have shown particular interest in cryptocurrencies. Since authorities do not have the right to control the circulation of ETH and other digital currencies, various operators have actively started implementing such payment methods in online platforms.
Today, there are two types of crypto casinos:
- Exclusive Cryptocurrency Sites: These casinos operate solely with cryptocurrencies. The number of such sites is small, as players generally prefer the other option.
- Gambling Sites Accepting Both Fiat and Cryptocurrency: Why not use the best of both worlds? Some of the most popular online casinos in the market accept deposits with both fiat money and cryptocurrencies, including Bitcoin, as well as other digital currencies like Ethereum, Litecoin, Ripple.
Advantages and Disadvantages of Crypto Gambling
Using Bitcoin or any other cryptocurrency, you can instantly withdraw your money from casino sites. Furthermore, all financial transactions using cryptocurrencies are anonymous and quite safe. The blockchain represents one of the most secure transaction options.
Certainly, cryptocurrency casinos have both advantages and disadvantages that you may encounter when accessing sites on the blockchain. Let's take a closer look at them.
Advantages:
- Simplicity of transactions;
- Enhanced player confidentiality;
- Advanced security measures;
- Fast transactions;
- Minimal commissions or their absence;
- Supports withdrawal of funds;
- Reduced transaction costs;
- Opportunity to receive more bonuses;
- No transfer of personal information to third parties.
Disadvantages:
- Cryptocurrencies are highly volatile;
- Uncertain legal status;
- Limited number of operational sites;
- Absence of centralized authority;
- Many crypto-casinos are not licensed and are not regulated by law.
Popular Cryptocurrency Casinos
It's best to engage in cryptocurrency gaming at licensed establishments with a solid reputation and market recognition. The following U.S. online cryptocurrency casinos have proven to be reliable:
- Grand Fortune, established in 2013, offers a range of top slot games for every taste. Clients can play via a mobile version and receive a 200% daily deposit bonus. Payment options include bank transfers or cryptocurrency.
- Bitcoin Penguin has been catering to players under a Costa Rican license since 2014. The casino exclusively uses cryptocurrencies (Bitcoins, Dogecoins, and Litecoins) for deposits and withdrawals. Financial transactions take just a few minutes.
- Rolling Slots is a promising casino with 3,000 gambling games available after depositing cryptocurrency. Operational since 2021, it has already made a name for itself as a promising casino.
Regulation of Crypto Gambling: International Practices
While most countries have official rules concerning online gambling, only a few regulate crypto casinos. These include the United Kingdom, Italy, the Netherlands, Greece, Poland, and Belgium.
In many countries, Bitcoin is not considered a legal payment method, hence its use in gambling is not permitted. Clearly, there is a need for more clarity in global legislative systems regarding this issue.
Japan serves as a striking example, where the gambling industry exceeds Nevada's by more than $4 billion and is valued at $15.8 billion. Despite very strict gambling regulations in Japan, the same applies to crypto gambling.
According to Article 23 of Japan's Penal Code, most gambling activities are illegal, and involvement in the Japanese gambling industry can lead to various types of punishments and fines.
However, certain games are officially permitted if organized by authorities or private companies under government control. Since the country's budget receives significant and stable revenue from the sale of legal gambling, the gambling business is gradually being legalized. In July 2018, Japan passed a federal law allowing the use of physical casinos in the country.
Joseph D. Hughes, Chief Financial Officer of the international cryptocurrency betting platform Jukebucks, comments on the situation:
"While it is difficult for the government to restrict online players, regulatory authorities closely monitor crypto transactions made from Japan and tax them."
Innovations Shaping the Future of Crypto Casinos: The Case of NuxGame
The integration of blockchain technology is one of the key innovations shaping the future of crypto casinos. Blockchain increases the transparency and security of online gambling by creating a public registry of all transactions. This ensures that all financial operations are protected from unauthorized access, in turn, creating a higher level of trust among players.
Operators can also benefit from the adoption of cryptocurrency by attracting a wider audience and reducing operational expenses.
For instance, NuxGame allows players to purchase cryptocurrency directly on the gaming platform. This makes the transaction process quick and convenient for the growing number of crypto casino enthusiasts, increasing betting odds for operators.
To achieve this, NuxGame first integrated blockchain wallets (Metamask, Aptos, and Phantom) into its application, and then added the services of leading payment providers, giving partners access to services such as PagSmile, ApcoPay, and Payment IQ.
On the updated NuxGame platform, monetary transactions can be made through global payment systems such as Neosurf, Skrill, and Neteller, as well as the digital system for cryptocurrencies - BinancePay. Now the company can offer the most popular payment methods in Latin America, Europe, Africa, and Asia.
Conclusions
Modern software allows the creation of cryptocurrency casinos, betting offices, or websites that offer both fiat and digital payment systems simultaneously. Players can choose from several digital assets to integrate with their website, including popular cryptocurrencies such as BTC, USDT, DOGE, Ethereum, and others.
Despite existing problems, the advantages of using cryptocurrency in online casinos far outweigh the risks. Increased security, faster transactions, lower fees, and global accessibility make cryptocurrency an attractive option for players who can expect a safer, more transparent, and enjoyable online gambling experience.
