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[...]
Is Crypto Useful For Online Casinos?
Guest Post | Aug 23, 2022
Cryptocurrency is becoming an increasingly popular payment method across many industries, including retail, entertainment, gaming and even food and drink. More businesses are beginning to accept cryptocurrencies as a form of payment as they develop into useful ways of making payments and add extra benefits to holders as opposed to using the more traditional methods, which include card payments and cash.
Online casinos have been very happy to accept crypto coins as a form of payment from players and all the best online casinos accept payments from Bitcoin, Ethereum, Litecoin and other coins. What we want to look at in this article is whether or not Crypto is useful for online casinos and their players, especially with how volatile it can be.
How Blockchain Gambling Works
So blockchain gambling is actually split into two different forms, there is on-chain and off-chain.
Off-chain gambling is where online casinos will use a third party to convert the cryptocurrency into fiat currency. For example, if you deposit 0.5 BTC and the price is $23,540, then you will get that amount of USD in your casino account, which you are then free to use on all of the games on their platform. Then when you come to withdraw, you can withdraw it as USD to your bank account.
Alternatively, some casinos will allow you to deposit using cryptocurrency and then withdraw with it as well.
Advantages of Crypto Gambling
There are many advantages to gambling using cryptocurrency and here are some of them.
Cryptocurrency is extremely secure, many have two-factor authentication which needs to be passed in order to verify a crypto payment at a casino and also crypto wallets are almost impossible to hack into. This is a good ease of mind for players to know that their funds are safe.
Transactions using cryptocurrency can also be immediate. As players, when we deposit at a casino site, we want the funds to be made available straight away so we can play. Same with withdrawing, there is nothing more annoying than withdrawing your winnings and finding out that you have to wait a week to receive it.
See: Crypto Payments Report 2022: How digital currencies are revolutionizing commerce, corporates and culture
With crypto becoming increasingly popular, it is important for casinos to offer it to players to be able to reach a wider audience. Due to all the advantages of cryptocurrency, there are players that will use it as their primary method of payment, therefore if it isn’t available to them at a particular casino, they will simply find another to play at.
Disadvantages of Crypto Gambling
Cryptocurrency can be unpredictable, it is extremely volatile, which means the price is always fluctuating massively. As players, this can be a positive and a negative. It is not recommended to keep large amounts of money in crypto. Also if the price changes mid transaction then it can cause some issues.
It can be hard to know what is going to happen to coins in the future, making it difficult to know which ones you can and can’t trust.
Is It Worth Having Crypto Payments At Casinos?
Overall we would say that crypto payments are certainly worth having at casinos. It is down to the player as to whether or not they choose to use it and in terms of volatility, that is the risk they will take and if they are willing to do so then it shouldn’t be an issue for casinos. The last thing they want is to lose out on any potential players.
There are the benefits of crypto payments, with how fast it is growing it can also benefit casinos to take crypto payments and have it as an investment. We are having to accept that cryptocurrency is not going anywhere and it is becoming used more and more where possible. If you are a player wanting to use these coins to make transactions then make sure you understand how a casino accepts them and any terms that come with it.
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