The advent of cryptocurrencies is starting to have a profound effect on both financial markets and in everyday life. Blockchain technology that acts as a platform for the transacting business with cryptocurrencies has already been embraced by a number of very important industries all across the world.
While the concept of digital currencies replacing fiat currencies still has hurdles to clear, the online gambling industry has already shown significant interest in both the blockchain and cryptocurrencies.
Blockchain would seem to have important implications for the industry in areas like transparency, fair gaming and giving customers additional value. Top operators like Casumo online casino are already looking at how these technologies can change how they interact with customers.
How cryptocurrencies benefit the online gambling operator
The use of cryptocurrencies in the online gambling industry is a two-way street. There’s a lot of noise about how it benefits customers (see below), but online gambling operators also get benefits.
The processing of crypto transactions is very hands off for the operator. The transaction is initiated through a blockchain platform between the customer and the casino’s crypto account. There’s no need to verify customer information nor is there any need for an employee to record any part of the transaction. If a large portion of a casino or sports book’s customer base is processing transactions in this manner, the operator will have an opportunity to lower its employee base, which translates to cost savings. The operator can use that savings to enhance the bottom-line or pass the savings along to customers in the form of more bonuses with better terms. Either way, it looks like a win-win for everyone concerned.
How cryptocurrencies benefit the online gambling customer
As much as the banking/consumer credit industries and government agencies view cryptocurrencies with skepticism, consumers are slowing coming to accept digital currencies as safer way to transact business with vendors, government agencies and online gambling sites. For now, the benefits for casino customers include:
● Faster Processing Time – By removing banks, credit card companies and the gambling sites personnel from the funding process, both credit and withdrawal transactions will happen in real time, which means almost immediately. The biggest change will come in the withdrawal area where customers are sometimes required to wait 72 hours for nothing more than identification verification.
● Cost Savings – Credit card fees, wire transfer fees and eWallet processing fees are notoriously high. Since cryptocurrency processing fees are very small (sometimes nothing), the customer will realize significant savings.
● Anonymity – Serious gamblers are very serious about their privacy. They aren’t particularly fond of online operators and government agencies knowing about their gambling activities. If bettors are willing to confine themselves to exclusively using cryptocurrencies like Bitcoin to transact business with the operator, there’s really no need to expose personal data. This gives the customer an additional level of security from outside intruders who might commit fraud. It might also help them avoid the “tax man”, something government agencies are sure to consider in the future.
Where will cryptocurrencies make a difference in the future?
Clearly, the online gambling industry is moving forward with blockchain and crypto technology. The rest of the business world would seem to need a little more convincing.
That convincing should come in the form of representative government agencies figuring how to regulate crypto use to its satisfaction. Some countries are reluctant to join the fray. Other countries are currently working on legislation to permit business transactions using certain cryptocurrencies. In South Korea, trading cryptos is legal with the anonymity feature removed.
While hacking and fraud are legitimate concerns, there’s little doubt cryptocurrencies offer more security than banks and other financial institutions. The real delay in acceptance would seem to be nothing more than society accepting that changes are coming.