In the last four years, Bitcoin has gone popular, and with it, numerous online casinos have begun to accept cryptocurrency. The main benefit of blockchain technology in the online betting, gaming, and casino industries is that it ensures database transactions are transparent.
There are many new and emerging open-source lotteries out there right now, for example, where the return to player ratio is normally kept hidden. While players are often distrustful, suspecting the site is a fraud, the blockchain allows them to observe exactly how transactions are performed, resolving this issue. If you bet online using blockchain, you can watch where your money goes on the platform if you lose. This means you can see how much the website profits from your money and whether it is trustworthy.
The usage of blockchain in online betting or bitcoin live casino will grow and become more common in the next few years. We’re already seeing start-ups that are disrupting the space by relying solely on blockchain payments for their infrastructure. This gives its athletes great peace of mind and is becoming increasingly popular.
Challenges Solved by Bitcoin
Many online gaming sites that offer atypical games like blackjack or poker are not licensed by the Gambling Commission of the United Kingdom or the Malta Financial Services Authority. If this is the case, such sites frequently provide no information about how winners are chosen, who is winning, or whether wins are remitted to players. As a result, they could be phishing sites.
Customers benefit from blockchain since it eliminates the necessity for such regulators in this scenario. This is due to blockchain technology and transaction openness, which allows you to see what happens to your money and deposits, as well as which other players’ losses have been added to your profits. It will also be obvious how much money the site makes from each transaction, ensuring that players aren’t being taken advantage of.
Cryptocurrency vs. Gambling
People that are interested in both gambling and cryptocurrencies do not form a large group. Gambling has existed for hundreds of years, but cryptocurrency is a relatively new notion, so it mostly appeals to younger, more tech-savvy individuals.
Gamblers are usually attracted to it for its entertainment value and are not afraid to lose their money. Gambling, on the other hand, is often unappealing to the younger generation, who want to see a return on their investment but also recognize that the house always wins, so it’s a risk.
They will see a significant return if they invest in cryptocurrencies such as Bitcoin or other well-known cryptocurrencies and keep it there for a long time – we’re talking years, not days.
Risks Associated with Gambling
When it comes to getting scammed, the risks are the same for crypto and fiat, with some lesser-known sites attempting to steal funds or refuse to pay out, albeit the methods used may differ. However, there are strategies to limit dangers for both currencies, and using well-known gaming sites is critical.
If games handled by online gaming or betting sites are inspected by federal bodies, as they should be if using fiat currency, the games are exceedingly unlikely to defraud you. However, the site itself may try to defraud you by claiming that the player has not submitted the proper documentation or by refusing to pay out if the player wins.
Because of the transparency of crypto and blockchain, which allows players to track and trace their assets, it will eventually be safer for players to use crypto-based gambling sites. Scammers using cryptocurrency, on the other hand, have less work to do to attain their goal. They don’t need to integrate a traditional payment method or have escrow funds, for example. Because the site is unregulated, it can steal your cryptocurrency or refuse to pay you out.
Anyone can make a website, host games, and pretend to be a gambling site by requiring customers to deposit cryptocurrency to begin playing. But then it stops working. Unfortunately, it’s becoming easier to set up a scam site like this, but the great news is that crypto is becoming more common, so there are already well-established gaming sites that use it, reducing the chances of being duped.
Regulatory Issues
Tracing the source of funds is critical when it comes to concerns governing blockchain, crypto, and gambling. It is significantly easier for authorities to track deposits made with credit cards or bank transfers. This is because they require a bank account, and to open one, they must first present identification and pass verification checks.
Furthermore, banks must prevent money laundering by questioning account holders about suspicious behaviour or the source of cash. Users can send money to a wallet ID with crypto, and because the money isn’t audited, it can originate from anywhere and from any form of activity.
Regulators demand confirmation of where the money is coming from, but they can’t compel players to reveal it. It will also be impossible to track the origins of the payments if the site’s managers do not take aggressive measures to ask for them. For these reasons, crypto is, sadly, the ideal option to launder money.
Conclusion
Crypto gambling sites should be controlled in the same way that fiat gambling sites are, by adhering to legislation and requiring customer identity, such as date of birth, as well as seeking the source of funds. This isn’t done very often with crypto-based sites because it isn’t required.
Furthermore, many gaming sites are based in countries like Georgia or Armenia, where regulations and oversight are less stringent. While many payment gateways refuse to work with sites operating in high-risk areas, crypto-based sites thrive since they don’t need to obtain permission to accept payments.
Regulators are attempting to be more stringent and establish standards for crypto-based transactions, but it will be a long and difficult path ahead. For the time being, if gamers accept the terms of service, it is up to them to decide whether the site is legitimate.