- July 1, 2021
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We have reached the age of the FinTech gaming industry. FinTech, who is also considered to have the Midas touch, started revolutionizing the ways the gambling industry progressed during the last years and especially after the 2020 crisis.
It is often said that cryptocurrencies and blockchain technology have the potential to revolutionize industries around the world. Blockchain technology has paved the way for a more open-minded, safer and more competitive sports betting or the casino industry, removing the traditional players’ grip on gamblers. This includes the ability to open an account in seconds, deposit and withdraw money instantly, play anonymously and take advantage of the most favorable home edges and odds. In addition, blockchain-based gaming sites no longer require sensitive KYC documents from players, mainly because they do not deal with traditional money.
Cryptocurrencies and blockchain technology are likely to affect the multi-billion dollar gaming space in the coming years. In particular, we look at some of the many benefits that cryptocurrency casinos and sports betting offer through their respective counterparts.
Finance is an integral part of any online gambling platform. With the advent of online gaming and easier access to downloadable content, there has been a shift in the gaming industry from selling individual, hard copies in retail stores to fully electronic copies. The advantages of this system are many. It provides a wider variety for consumers to choose from, a spotlight for smaller developers, and the ability to enhance the user experience and in-game features through online updates. A major problem, however, arises when it comes to payments. Traditional bank transfers are tedious and time consuming, with no real benefit compared to buying products purchased from the store. FinTech offers ideal solutions to this problem through financial services embedded in gaming platforms.
What is a Blockchain Gaming Website?
In short, a blockchain gambling website is an online casino or sports betting platform that specializes exclusively in encrypted deposits and withdrawals. Therefore, players will not have access to traditional payment methods, such as debit/credit or e-wallets, when it comes to funding their account. Instead, they focus on popular digital currencies such as Bitcoin and Ethereum.
Basically, the main principles of an online gambling site remain the same as those of a traditional platform. For example, you will still have access to thousands of conventional casino games through the touch of a button. This includes board games, Live Dealers, Video Poker, Slots, etc. Like the traditional website, you can place a bet before matching or betting while the game is still in play via a live betting facility.
The benefits of blockchain gambling sites are almost endless. So let’s break down these benefits and explore how they compare to traditional betting sites.
- Open an account in seconds:
To begin with, online betting websites allow you to open an account in seconds. All you need to provide is an email address, a username and a strong password – and you are good to go. This is in stark contrast to traditional betting sites, which require everything from your first and last name, home address, nationality, date of birth and more.
- Gamble anonymously:
Not only are you not required providing personal information when using an online betting website, you can also remain 100% anonymous at all times. Traditional casinos usually ask you to go through the KYC (Know Your Customer) process – which means you’ll need to upload a copy of your passport or driver’s license and proof of address. Blockchain gambling websites do not require any documents at all.
- Deposit and withdrawal of funds:
One of the biggest pain points in using a traditional betting site is the fund withdrawal process. You usually have to wait 1-2 business days for the operator to process the withdrawal and then another 1-5 business days for the payment issuer to credit the funds. Instead, gambling websites allow you to withdraw money instantly – which means you will have your winnings in your personal wallet in minutes.
- Legitimate and trustworthy:
Those who play online casino games with software – such as blackjack, slots or video poker – are often concerned about the legitimacy of the game. With that said, the blockchain gambling space has introduced a phenomenon known as “Provably Fair”. The crypto-centric online casino KawBet explains that Provably Fair guarantees the impartiality and integrity of each game.
In a Provably Fair gambling system, a player places bets on games offered by the service operator. The service operator will publish a method for verifying each transaction in the game. This is usually done by using open source algorithms for random seed generation, hashing, and for the random number generator.
The explorer also functions as a publicly controlled notebook, so all bets are recorded unaffected. With that in mind, you never have to worry about the credibility of an online casino when using an online gambling website.
- More competitive odds:
The traditional gaming space is full of regulatory bureaucracy, mainly because the platforms deal with deposits and withdrawals in the form of Fiat currency. This results in an ever-increasing cost for gambling sites, which means that the odds of sports betting become less competitive.
On the contrary, gambling websites are not linked to fiat currency and consequently, they are not bound by the same regulatory restrictions. As a result, you will often find that platforms offer more competitive odds on sports betting, as well as lower house fees on casino games. As for the latter, this is especially true when playing games supported by Provably Fair.
Overall, it is fair to say that any gambling investor cannot ignore the huge impact that FinTech currently has and will have in the gambling industry in the future. Revenue from online casinos, E-sports events, small or big transactions and online subscriptions are individual parts of a huge market. Soon, the gambling industry is expected to grow at an ever-increasing rate, with each generation of players bringing new consumers to a very dynamic market.