The online gambling world has become a huge business industry for gambling companies and gamblers alike. It is estimated that online gambling accounts for 25% of the annual industry turnover in USD. This represents potential billions of dollars in revenue every year in the industry.
The plethora of uncertainties and transparency issues surrounding the industry has been a drawback to achieving this height. A proper implementation of Blockchain to online gambling has the potential to greatly expand the industry. There are good signs across-the-board that the benefits of adopting the technology are immense to gamblers and companies alike.
The deepening of Blockchain technology would ensure a much-desired transparency in the gambling industry through the verifiable records the technology provides. Some of the potential benefits of Blockchain technology and Cryptocurrency for the gambling industry includes;
Minimizing fraudulent acts
Fraud considerably reduces the profits achievable in the online gambling industry for the stakeholders. Players have been known to defraud operators while making deposits and withdrawals on their accounts. Moreover, hackers can easily target online casinos in order to bend the game in their favor.
By using Blockchain, the online platforms are a lot more secure due to the distributed ledger technology which is accessible to all. It provides safe ways to do transactions by smartly calculating profits and losses with all transparency. As a result, losses from insecurity would be cut back and the gambling business can then attract the indifferent crowd.
Raising the trust level
Many online gambling platforms have been seen to defraud players through several shady means. Frequent cases of fraud and stealing by casino owners have discouraged many casino enthusiasts from using the online casinos altogether. From unfair game designs and house edge to fake platforms ready to cart away with players’ winnings, online casinos generally lack transparency.
Blockchain smart contract simply removes the loopholes present in transactions and gives the customers confidence in fairness. It is definitely a positive for legitimate casinos because the bad apples among them will be weeded out. The transparency in transactions for every party involved in the gambling world is enough to change public perception.
Anonymity and Simple Payment
Online casinos usually request a proof of identity from players who would by all indications prefer to remain anonymous. This lengthy identification process is at times a put-off for many players since they can’t withdraw their earnings otherwise. Blockchain will help reduce these identification procedures to a simple contract authentication process as seen in cryptocurrency exchanges platform.
The anonymity provided ensures users do not need to share too much personal information with casinos, hence reducing the risk of data breach. As already seen, players are only required to send their cryptocurrencies to designated accounts for them to participate in the games.
Lesser difficulty gives more time to spend to play the games. Payment restrictions plaguing the use of regulated bills are eliminated, as well as the excessive charges associated with online transactions using them.
At the mention of Blockchain, most people think of Cryptocurrency. It’s popular knowledge that Blockchain facilitates decentralized currencies which are now being used by reputable companies for transactions. In fact, some gambling sites have already adopted cryptocurrencies for deposits and payments to players.
Introducing the use of crypto will give players ease in making payments and withdrawing same as they please. Drawbacks such as transaction charges and withdrawal limits are very well eliminated.
Overcoming location restrictions
Gambling enthusiasts around the world suffer from one local regulation on gambling or the other. As a result, many fall victim to frauds and illegal operators trying to satisfy their urge. Blockchain will provide these set of gamers with unfettered access to any casino worldwide through its decentralized technology and the use of its digital bills.
Transactions can be made from any location in the world with a good internet connection. In addition, it will help eliminate the processing period for payments to winners with its fast and irreversible contract execution.
House edge reduction
Casino operators maintain their trade with the house edge, which is a percentage of users’ deposit. Blockchain reduces the running costs of online sites making use of cash transactions, hence significantly lowering the need to have the house edge.
This will attract more customers since they are now able to maximize their investment.
The decentralized nature of Blockchain has engendered a smooth operator-user relationship in the online gambling industry. Nowadays, any player can be a shareholder in online casinos through their earnings on the platforms.
Casinos now offer the opportunity for users to invest a percentage of their winnings in the company without excessive paperwork. For instance, vSlice, and Ethereum project has a system that enables token holders to receive payments as profit is being made.
The Need for Regulation
The blockchain is not exactly the utopia for the online gambling industry. Like every other revolutionary invention, it has some loopholes and weak points. It’s wide knowledge that there is a huge gap for improvements in the structure and implementation of Blockchain and cryptocurrencies.
A few years back, a thousand bitcoin units get a burger and now, a unit will buy the latest iPhone. The unstable value of Cryptocurrency within a short time interval could spell the end for casino operators and gamblers alike.
The decentralized currencies are highly susceptible to factors that could be controlled though minimal regulation. At the least, an innovative channel should be created to guide the currency flow without meddling with the distributed ledger and user data.
The huge impact of the Blockchain technology can only be fully realized if bystanders in the big tech world participate to exploit this potential. Some control measures must be in place to attract new players in technology and more specifically, in online gambling.
Lastly, online gambling has come to stay, but its profitability can be exponentially increased by the appropriate implementation of the Blockchain technology. Online gambling is one of the most promising beneficiaries of the blockchain age.
Tricksters are easy to spot, transparency is ensured, excess regulations and restrictions are bypassed with Blockchain. One can only imagine the scale to which Blockchain can revolutionize gambling and the internet in the days to come.