The gambling industry has undergone radical changes over the last decade, with the popularity of online gambling revolutionizing how consumers can place wagers. Another development that grew at a similar pace to that of the online gambling industry is the cryptocurrency market.
Naturally, the two industries found a natural synergy with cryptocurrency offering several benefits to online gamblers.
The pace of technological developments has often outpaced that of regulations. With legislative changes moving slowly because of all the stages they have to go through, it has led to loopholes in laws that are being looked at by governments.
Crypto Casino Development
The online casino industry has seen a slow progression in the US, with only 6 states allowing licensed operations. However, this has been great news for international operators with offshore casinos providing a way for US citizens to access their favorite casino games.
Offshore casinos that are licensed by other countries offer the same levels of security as many licensed US operators. Many even offer more competitive bonuses, a wider variety of games, and a selection of convenient payment methods.
The launch of Bitcoin in 2009 heralded the beginning of a new digital currency era. Several other cryptocurrencies followed in its wake, with many growing in popularity and value.
The casino industry was one of the first to embrace cryptocurrencies, with dedicated sites accepting the most popular options. Crash games were some of the first to be designed for crypto users and have helped crypto casinos consolidate their position as a worthy alternative to online casinos that accept traditional payment methods.
There are now many trusted Bitcoin casinos for consumers to choose from, and online casino and crypto expert Michael Graw describes the top factors consumers should consider when looking for one.
The selection of games and user experience will always be a key factor for consumers deciding which crypto casino to use. Other ways to filter out unreliable operators include checking whether the site is licensed and follows the regulations in the area they operate from.
Regulatory Concerns Associated with Crypto Casinos
Online casino regulations in the US are relatively prohibited, and only West Virginia, New Jersey, Pennsylvania, Michigan, Delaware, and Connecticut offer licensed operations.
Regulations prohibit businesses from setting up operations in other states, but there is no legislation that prohibits US citizens from accessing offshore betting sites.
While this affords consumers greater freedoms, authorities have expressed concerns about the anonymity crypto casinos offer. This makes it more challenging for regulators to monitor activity and enforce anti-money laundering laws, prevent fraud, and ensure underage players can't access sites.
The concerns held by authorities relate to no-KYC crypto casinos, that don't require users to upload identification. However, these options do provide users with greater online security and protect them from data theft and identity fraud.
Another concern relates to the volatility of cryptocurrency values. Some crypto casinos offer stablecoin alternatives that attach themselves to traditional fiat currency values, helping them provide greater stability.
Potential Benefits of Crypto-Based Casino Apps
While these regulatory concerns provide a level of uncertainty about the future of crypto casinos, the many benefits they offer have enticed many users to turn away from traditional payment methods in favor of cryptocurrencies.
Accessibility
As well as offering US consumers a way to access secure online casino sites, crypto casinos are also an excellent option for countries that suffer from unstable currencies or banking systems.
They can also help people in restrictive countries who might not have access to bank accounts.
Anonymity
Online anonymity is something that many consumers who rank security as a priority strive for. Minimizing the amount of sensitive data consumers upload greatly mitigates the risk of falling victim to cybercrime. However, this is growing increasingly difficult with most online casinos requiring proof of identity as well as bank details.
Transparency
The blockchain technology used by crypto casinos provides users with increased transparency, with all transactions available to view on the digital ledger. This makes information readily available to external auditors and reviewers who can verify the fairness of the operator.
This makes it easier for consumers to find reputable online casinos and also helps the operator build a greater level of trust with their customers.
Security
The transparency afforded by blockchain technology is just one of the benefits it offers casino customers, with greater levels of security. Rather than one centralized system control, blockchain networks distribute responsibility across multiple nodes which makes it difficult for cybercriminals to amend the system.
It uses cryptographic techniques to transfer data and make it unreadable to hackers, working on a PoS (Proof of Stake) or PoW (Proof of Work) to prevent fraud and validate transactions.
Linear storage protocols add new blocks to the end of the chain, meaning that anyone seeking to manipulate information would have to gain access and complete changes before more information was added.
The Future of Crypto Casino Apps
Regulatory boards around the world will likely amend legislation to include crypto casinos as a way to exert greater control over who can play. While there is an obvious need to prevent criminal behaviors including money laundering and the funding of terrorism, the threat of taking away an anonymous platform will not sit well with users.
In the meantime, crypto casinos look to be at the forefront of innovation and offer benefits that traditional online casinos are unable to. Its growth will benefit from the growing popularity of cryptocurrencies and their acceptance by major brands and businesses.
Smartphone development is another factor that will help the growth of crypto casinos, with devices now able to handle high-quality gaming experiences that allow developers to flex their muscles.
Conclusion
Crypto casinos currently fall in between a lot of regulatory frameworks, making it an accessible option for all consumers. Unfortunately, it is this accessibility that could lead to regulatory changes.
The proliferation of gambling apps makes it hard for consumers to find the best and most trustworthy sites. Crypto casinos offer something a bit different from traditional online casinos, and it will be interesting to see how regulators try to govern their use in the future.