Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How Bitcoin Affects the Growth of the Canadian Online Casino Industry
March 20, 2023
Image: Unsplash/Traxer
Bitcoin has become incredibly popular in Canada over the past decade. Celebrities keep tweeting about it. Casinos are now accepting it for payments while tech-savvy Canadians are buying it as an investment.
In the online casino space, almost every website has bonuses for crypto users. Some of them also feature games created on the blockchain. What’s this commotion all about? How is Bitcoin benefiting online casinos in Canada?
Fast and Secure Payments
Slow, unsecured payments kill hundreds of businesses every year according to the Harvard Business Review. That’s why many new casinos are embracing crypto at such a fast pace.
Bitcoin processes transactions in an average of 10 minutes. If you use an alternative coin like XRP, you can send money around the world in seconds. It doesn’t matter if you’re sending $10 or $1 billion worth of crypto—the blockchain system is lightning fast.
It’s also secure. Bitcoin addresses are encrypted using cryptography. This means no one can decipher the data. Secondly, they’re stored on the blockchain, which is decentralized and impossible to hack.
Although most crypto casinos accept bitcoin for deposits, some of them also accept Ethereum, Litecoin and Bitcoin Cash. Visit Bitcoincasinocanada.com to find the best crypto casinos and the cryptocurrencies they accept.
Low Transaction Fees
Both gamblers and online casinos benefit where low fees are involved. As a casino player, you can save money while transacting with your favourite betting site. For casinos, low fees increase profits.
Bitcoin offers much lower fees than credit/debit cards and bank transfers. That's because it eliminates the middleman. You see, a payment made through a wire transfer must be approved by the bank.
If you deposit through a credit card, your credit card company must approve the transaction. In both cases, the middleman takes a small cut for their service. In the world of crypto, there’s no intermediary.
Crypto provides peer-to-peer payments, meaning you can send money to your friend without asking for approval from anyone. There’s a catch, though. To keep the blockchain secure, every payment must be verified.
The people who verify crypto transactions are called miners. They verify transactions through a resource-intensive mining process. To reward them, crypto users pay a small of money during every transaction.
Cross-Border Transactions
When you think about it, some of the most popular online casinos in Canada are located overseas. Some, like this Blockchain-based online casino, are located in Curacao. Some are based in Malta while others have their headquarters in Panama.
Despite that, these casinos provide smooth gambling services in Canada. The reason they’re successful has everything to do with cross-border payment methods.
They allow players to gamble through Visa, MasterCard, PayPal, Skrill and wire transfers. Lately, these sites are accepting bitcoin because it operates all over the world.
If a Canadian casino wants to target customers from all the major continents, crypto offers the ideal payment option. Sure, some governments have tried to ban it. But these measures seldom work. Governments can’t control blockchain technology. And that means crypto will continue to thrive.
Reducing Fraud
Did you know chargeback fraud costs online businesses $20 billion every year? That’s right. People are constantly trying to rob businesses like casinos. Crypto is offering a solution.
When you send money through bitcoin, there's no chargeback. If you make a mistake, you lose the money for good. If you deposit funds to your favourite casino, you can't ask for a chargeback.
This means you need to be careful about the gambling sites you use. It’s in your best interest to conduct due diligence to avoid fraudulent sites. If you run an online casino, the absence of chargebacks is a huge win. People can’t take advantage of you by asking for refunds even after they spent their money.
A Potential Inflation Hedge
The Federal government keeps printing new dollars. That means the CAD will continue to lose value over time. With bitcoin, there will be a maximum of 21m BTC ever.
More than 80% of all bitcoins have been mined, which means scarcity is increasing. Scarcity means more demand and higher prices—a hedge against inflation.
Casinos using crypto can make more money by just holding onto their coins. Sometimes crypto loses value. So, holding crypto required for day-to-day operations may not be the best idea.
With that said, operators can keep some profits in offline crypto wallets. Crypto has proven to be an excellent hedge against inflation in the long term.
Enhancing Convenience
As crypto becomes popular in Canada, so will the demand for bitcoin online casinos. Crypto is one of the most sought-after financial assets in North America, especially in the millennial and Gen Z demographics.
Most people buy bitcoin and altcoins to make profits. However, there's also an avid group of crypto users who purchase the coin to use it for everyday payments on eCommerce sites and betting apps.
People who love bitcoin and Ethereum expect casinos to offer crypto deposits and withdrawals. Some of them also want to play blockchain-based slots and table games.
Yes, developers are now creating gambling games on the blockchain. These games have one unique feature—they’re provably fair. You can check the blockchain to confirm you won or lost fairly.
Increasing Traceability
Some online casinos use the blockchain to manage all their payments. The blockchain works as a ledger that stores data transparently. This way, a company can trace every payment in real-time.
Unlike humans, the blockchain does not make errors. This helps operators maintain their records and also save money. It also helps them streamline operations—they can settle bills, clear payouts and manage deposits on the same platform.
Conclusion
Crypto is transforming the online casino sector in Canada. And both the gamblers and casinos love it. Bitcoin fans who love to play slots and card games can now deposit funds through BTC or ETH.
See: Bitcoin Payments on the Rise
On the other hand, casinos have a new customer base. They can reduce operational costs and invest some of their profits in the ever-growing crypto market.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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