According to an analysis by a blockchain analytics company called Chainalysis, there are over 70 cryptocurrency online casinos in the market, cashing in on $2.8 billion worth of bets in 2022 alone. Read Below More to get more ideas on Benefits and Challenges of Crypto Casino Business.
In fact, there was a 64% rise in betting handles in 2021, putting a market value at $10 billion. This data begs the question: who wouldn’t want a finger in the crypto pie?
Of course, the established crypto casinos found on CasinosBlockchain are the leaders in market share, but that doesn’t mean there isn’t room for new operators.
Low transaction fees, low costs of licensing, and access to multiple jurisdictions are just some of the Benefits and Challenges of Crypto Casino. On the other hand, cryptocurrencies are very volatile and can lose all of their value overnight, making the endeavor a risky one, to say the least.
Join us as we explore the Benefits and Challenges of Crypto Casino that lie ahead for all those venturing into the treacherous waters of crypto.
Benefits of Starting a Crypto Casino Business
Launching a crypto business has its perks. By running an online casino on cryptocurrencies, you won’t have to foot the bill for those high transaction costs that are usually associated with payments in fiat currencies. There are no payment processors and gateways taking their share, which translates to larger profit margins for the operators.
Moreover, payments made via crypto are processed almost instantly, thus enhancing the overall user experience and ensuring a smooth gambling experience. Speaking of customers, online crypto casinos have access to a global customer base. There are no specific laws in any of the countries that prohibit players from accessing crypto casinos since these are not registered in local jurisdictions. Hence, they don’t need to abide by the local rules.
Furthermore, by playing with Bitcoin, Ethereum, Doge, or any other cryptocurrency, players can take full advantage of the anonymity and safety that come with cryptos. There are no tedious KYC policies you need to pester users about t and those account verification procedures that take forever to complete and require additional involvement from casino personnel, which adds to the overall costs of running an online casino business.
In addition, the blockchain technology that powers cryptocurrencies is virtually impervious to hacker attacks, which undoubtedly adds to the overall safety of your casino.
Challenges of Starting a Crypto Casino Business
Success in running an online crypto casino is not guaranteed under any circumstances. There are scores of obstacles you need to overcome along the way, and one of the biggest are the regulatory challenges.
Namely, few state gambling regulators allow online casinos to support payments in crypto, and even if they do, they require operators to impose strict KYC procedures, which include gathering personal details from the players. These procedures are, consequently, in direct conflict with the nature of cryptocurrency, and that is maintaining the players’ anonymity and privacy.
Speaking of regulators, there aren’t many that sanction the use of cryptocurrencies in online casinos due to the lack of central authority that will govern their value and the fact that many countries in the world do not allow cryptos. The legal issue behind the digital assets can be an issue going forward.
Furthermore, as we can see from various reports, the competition in the crypto casino business is fierce, and it could take a lot of time to carve out a share of the market. You’d need generous promo deals, a variety of games, including provably fair ones, reliable customer support, and many other things done right to appeal to users and make them stay once they sign up.
Ultimately, relying solely on cryptocurrency means dealing with their volatility. The value of cryptocurrencies is largely dictated by supply and demand, which can lead to their overnight growth or downfall.
Steps to Starting a Successful Crypto Casino Business
One of the primary steps towards building a successful crypto casino business is identifying your target audience and potential customer base. To do so, you need to engage in detailed market research and know more about the Benefits and Challenges of Crypto Casino.
The results from Benefits and Challenges of Crypto Casino market research will tell you more about customer behavior, demographics, the economic trends, and other crucial details that can help you shape your product.
In addition, you are required to do a competitor research to better gauge the strength of your opponents, identify their soft spots, and direct your promotional activities accordingly.
Another significant segment includes developing a feature-rich platform with a considerable game lobby, multiple payment methods, bonus programs, customer support service, and other essential facets of any casino.
You can team up with software developers and use their White Label solutions that already come with all of these features and, as such, are the fastest to launch, or opt for the Turnkey solution and enjoy more customization options.
Regardless, you need a team with proven expertise in the field, as well as gaming and cybersecurity, and most casino software developers offer the services of dedicated managers and professionals to help you with that.
In fact, online casino software developers provide licensing services from the leading gambling jurisdictions, allowing you to operate legally in multiple countries and territories. An additional step could include obtaining certificates from iTechLabs, eCOGRA, and other independent software audit labs. With their certificates, you’ll demonstrate to your customers that the games in your portfolio are safe and fair.
Finally, you’ll need a detailed CRM and marketing strategy to attract new users and retain existing ones. The bonuses you offer should come with user-friendly terms that give players a decent shot at clearing the wagering requirements, which could do wonders for your reputation.
Running a crypto casino business can prove to be a profitable enterprise considering the market’s size, the lack of fees charged by payment providers, and the potential global reach. On the other hand, you need to deal with potential issues regarding licensing, the volatile nature of crypto, and the fact that the world of cryptocurrency is a dog-eat-dog world.
Still, with the right mindset, detailed market research, preparation, and user-friendly software, you can find leverage points and establish a foothold in the industry that’s only going to get bigger.