Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
How iGaming Industry Stays Ahead through Financial Innovation
November 11, 2024
Image courtesy of AI
It’s no secret that technology has powered the sustained growth of iGaming on a global scale – without fast wireless internet and secure data encryption protocols, there would be no online casinos. However, there are other innovative approaches that are quietly fueling the rise of this industry despite not being widely recognised as essential. One particular area where online gambling sites are making great progress processing payments faster and cheaper, and this aspect of their operation is frequently overlooked when discussing the critical factors of iGaming’s success.
Let’s take a step back and look into all the advanced financial technologies that had to be adopted in order to facilitate quick and easy transfers to and from your online casino Canada account.
Unique Requirements for Financial Transactions in iGaming
Since iGaming products allow players to win real cash, they have to be designed to be compatible with some methods of money transferring. That raises several big questions, from security of transactions to practical considerations such as fees and exchange rates. The players need to be able to make both deposits and withdrawals, so iGaming platforms need to have two-way functionality when it comes to handling money. A large percentage of players join websites registered in another country, so all transfers have to be international.
Faced with such pressures, iGaming companies implemented verification and authentication procedures and initially partnered with credit card processors to handle all financials. This was far from ideal – banks generally don’t like transferring small amounts across borders and they often charge astronomical prices and take a long time to complete the transactions. Due to strong international growth and demands from players to simplify money management, casino sites and sports betting platforms started looking for ways to expand and diversify the range of financial options.
Digital Payment Systems as a Low Cost Alternative to Banks
The advent of so called ‘eWallets’ has done wonders for the international e-trade, streamlining the transactions completed over the internet. Innovative online services like PayPal and Skrill have done what the banks couldn’t – offered faster transfers with lower costs. It didn’t take long for iGaming companies to see the potential, and they quickly started integrating these payment systems with their websites. Enthusiastic reactions from the player base certainly contributed to widespread adoption of eWallet solutions and motivated the providers to keep introducing new ways to move money.
Instead of days, the time needed to complete a transaction was reduced to mere hours. These payment systems have quickly been proven to be highly reliable and very secure, while the player only had to leave his email address to facilitate the payments. This was a big step forward, but eWallets are still connected to the banking system and have some geographic limitations. That’s why the industry was so eager to take the next leap into the unknown and improve privacy even more.
Embracing the Crypto Revolution before It Goes Mainstream
Since Bitcoin was invented in 2009, there has been a lot of debate whether crypto currencies can have any practical uses that would justify their existence. It took around a decade for this concept to become more popular, and online gambling platforms were among the early adopters. Crypto coins including Ether, Dogecoin, or Tether can be used to anonymously transfer funds anywhere on the planet thanks to the underlying blockchain ledger that allows every user to track the transactions.
Crypto currencies allow users to bypass the banks and traditional fiat currencies completely, relying instead on decentralised financial networks. After getting positive feedback from players, iGaming companies have completely embraced the crypto world and now routinely allow users to make deposits in Bitcoins or other cryptos. Some online casinos are ditching the old banking methods altogether and accept only crypto payments, which goes to show how quickly this transition is progressing. According to some reports, crypto gambling has accounted for up to 30% of all spending on iGaming sites in 2024.
How iGaming Companies are Combating Fraud and Money Laundering
With new possibilities come new dangers, and online gambling companies are well aware of the major challenges that threaten to give the whole industry a bad reputation. Gambling has long been a domain in which criminals feel comfortable, and many companies that launched attractive sites ended up being thinly veiled attempts at fleecing the players. That puts a lot of responsibility on the legitimate actors in this space to enforce high standards of financial compliance.
See: What Gaming Can Teach You About Investing in Fintech
In an effort to eliminate fraudulent behavior and prevent money laundering, iGaming platforms are adhering to KYC (Know Your Customer) procedures and requiring proof of identity before approving any withdrawals. This effectively prevents players from opening fake accounts or using funds acquired through illegal means to gamble online. The game of cat and mouse is ongoing and the industry keeps looking for new mechanisms to increase security while the malicious actors are becoming more sophisticated in avoiding detection. While some risks remain, it’s certain that the industry is much safer than it was a couple of decades ago and it will likely become even more compliant with the laws as its profits continue to soar.
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, artificial intelligence, 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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