Cryptocurrency and Online Gambling

Gambler’s Ruin is part of a rich seam that runs through life, but in cryptocurrency and internet gambling we now have more freedom than ever to face and refine bets that operators and players have always wanted to take, but never before could easily.

And for players, the benefits of using cryptocurrency mean instant deposits and withdrawals, while more traditional banking methods can take a few days – not to mention charging serious fees. As well as deposit and withdrawal rates, people need to be reassured about the security of the site, and a site that is properly licensed as a Bitcoin casino will always be above board.

Benefits

Cryptocurrency gambling has gone mainstream, and looks like staying there as it integrates into iGaming. The use of new digital currencies in iGaming is still only on the cusp of developing, but it’s having an immediate positive impact in several key areas: privacy, cost, speed and rewards. And, as players increasingly use cryptocurrency transactions to gamble anonymously, they’re turning their backs on traditional banking in favour of the digital alternative. Cryptocurrency payments leave no money trails, which protect the identities of its users from both the national surveillance that governments use, as well as their own banks.

The rapid nature of cryptocurrency transactions, which make deposits and withdrawals very swift, and their lower costs, are highly attractive to gamblers. The decentralised nature of cryptocurrencies and the way that blockchain technology aids security also help to make matters easy and safe for all involved; this cloud-based technology means that players who value discretion are able to play undisturbed and can keep their money movements out of financial view, adopting a ‘don’t ask, don’t tell’ approach. This faceless rigour also means that, coupled with low banking fees, it becomes easier for people from different geographic regions to access iGaming platforms if they desire to do so, thus democratising the situation and opening up opportunities to people who were previously unable to participate thanks to overbearing intervention or regulatory concerns.

Risks

The ability of crypto gambling to offer larger jackpots, greater security, more anonymity and much quicker payouts has fuelled the recent boom in online gaming. Just like traditional gambling online, however, cryptocurrency gambling comes with its own dangers: moves in the price of digital currency can decrease gains or losses in real-terms over time, and digital currencies could open the door to fraud and identity theft.

On the other hand, as these are not regulated by the same way that online casinos are, the cryptocurrency casinos themselves offer a risk for users seeking to play. The chances of users getting scammed by the casino, or noticing that they offer an unfair game for users are greater.

Similar studies have also pointed toward a connection between crypto trading and gambling issues, with one showing that gamblers trading in the stock market showed greater severity of problem gambling symptoms than gamblers not involved in the stock market. As new technologies come online and regulations are introduced, I believe there will be increasing need to sort out these issues, so that gambling that occurs in safe environments – which includes responsible gambling features such as deposit limits, timers and self-exclusion programmes – will be able to flourish in the long run.

Regulation

Cryptocurrency gambling brings with it a range of challenges and pitfalls, necessitating a collaborative effort between regulators, operators and users to harness the best of it while minimising the worst.

While a huge number of jurisdictions have seen fit to accept, allow and legislate use of certain forms of cryptocurrencies, other jurisdictions have shown more reticence, and a small minority have instead banned such concepts entirely. iGaming operators, then, must always be cognisant of and abide with any and all applicable and extant rules, regulations and requirements – including anti-money laundering policies.

US crypto casinos would also need to submit to federal anti-money laundering regulations, which means KYC checks on customers, and the reporting of suspicious activity to authorities. Risk-assessment systems that check identities of customers and carry out regular reviews of the data would likely be needed to prevent customers from playing using IP addresses in states where online gambling is banned. However, bitcoin’s value is also volatile, another risk for gamblers who may find that the price has tanked, leaving them without money and making it difficult to recover.

Legality

Crypto casino (also known as cryptocurrency online gambling) enables players to play poker and other types of lottery-style games online with the use of digital currencies. Since Bitcoin appeared in 2009, there has been a growing demand for this type of gambling online; some states have banned or legalised these platforms and others welcome them, although they are regulated.

Unlike a real gambling portal, where you might need to share personal details, a crypto gambling site simply uses your wallet address instead – which further shields you from attacks by hackers or other interested parties.

Despite many conveniences associated with plaing cryptocurrency online, gambling could also have some shortcomings – that is, a high volatility of cryptocurrency means that recovering gambling addicts may get confused with true value of depositing and winning, whilst unclear regulations on cryptocurrency gambling make operators’ compliance with laws questionable.