Online betting is far from being a novelty. It’s been around for a while now. What might be new for many are the new crypto betting sites. The first thing that makes them different is the use of digital currencies instead of the fiat ones. While a minor shift in the great scheme of things, it does make a massive difference. The online gambling websites that use cryptocurrencies circumvent banks, have lower cost, and are available for users from all corners of the globe. While amazing, many people do not get the business model behind crypto casinos. Here’s how they make money and the impact they have on the traditions of gambling in general.
Where Does The Money Come From?
In this department, there’s not too much philosophy. Instead, it is straightforward and similar to any established casino. Online crypto casinos get most of their money from games they provide. As usual, the house edge plays a massive role. Add margin on bets that contain odds, and you get a working financial system that most casinos apply. What’s also important to know is that many crypto betting sites also have liquidity pool models, token economics, and the use of De-Fi style models. When you use crypto,the finances move a tad bit differently.
Low Costs, High Reach
When compared with regular casinos, crypto ones have a lower cost of operation. For one, they do not require to work with banks, thus eliminating a payment processor that has fees attached. Furthermore, in some areas of the world, where gambling is either illegal, or in the gray zone, the players can have access to these platforms as they do not have to register through traditional means. Lastly, but also rather importantly, the use of crypto and blockchain makes automation of bets, payouts, and account management all that much easier. All of these things combined allow online crypto casinos and sportsbooks to have a cheaper operation, offer better odds, and give players superb promotions and bonuses.
Global Reach
Cryptocurrencies now have no borders. Because of this they delete a need for a local payment system for users. Any digital currency casinos can allow player registration regardless if they’re in Nigeria, Serbia, or Argentina to play, and the same goes for those from Japan or Canada. As we said, crypto knows no borders so there’s no conversion rates, no bank transfers or declines God forbid, making matters such as depositing the bankroll and withdrawing it a no hassle. Also, there’s the small matter of accessibility too, and we’re talking about 24/7 access. With a global reach blockchain and crypto have allowed online casinos, the benefits of running one grow by the day.
Privacy Benefits
When you try to register at a traditional online casinos and sportsbook, it is necessary to provide them with your ID, bank info, and address. When you register at a crypto casino, in many instances none of this data is required. With a crypto casino it is possible to have an anonymous account. The basic requirements include the necessity of an email and the address of your digital wallet.
As if that’s not enough, the entire signup process is more than rapid. From the moment you open your account, there is little to no oversight from the third parties, making it an ideal option if you want to gamble within your four walls. The only downside of this is, that it’s possible to register even if a user is underage, and there are a few alleys opened up for cybercriminals if you’re not careful.
Are There Risks Involved?
If you’re not careful, yes. For some users, the lack of regulation might be an issue. Also, some websites operate without a license. There are cases that some online casinos were created only as scam outlets that intend to do a rug pull when there’s enough users and money going around. Because of this it is paramount that you register with a trustworthy online crypto casinos that has a proper license. Lastly, it is also vital to take into account the volatility of digital currencies. While this can be beneficial in the case that you win big playing slots, and the value of your selected crypto skyrockets, it can also go the other way around.
The Effect of Crypto Casino on Existing Gambling Markets
Online crypto casinos are already changing the way the entire industry moves and operates. For one, their main benefit, at least as far as players go, is the lower fees involved with registering, depositing, and playing. With the lesser fees with digital currency casinos, the regular ones have to lower theirs too to remain competitive. Furthermore, blockchain and crypto are moving the limits set on the technology by the day.
Smart contracts, provably fair systems, and on-chain games are proving to be superior to what traditional online casinos have to offer. The habits of regular players are changing with each passing day, and as more players see the benefits of not having to use banks, or IDs, more will flock to the new option on the market. In the end, the already mentioned global appeal of crypto casinos is making all the difference. The traditional casinos are usually tied to one location, region, or a state, thus making them inferior to what digital currency casinos bring to the table.
The Lasting Effect
As we already said, crypto casinos are here to stay. Traditional casinos have noticed that the game is changing and they’re adapting accordingly. Most are already testing different crypto payment options or are making plans to do it. Others have turned their faces toward what blockchain technology brings to the table, and are offering games that are created with blockchain technology. The governments all over the world are also looking to become part of the equation by providing some form of oversight in order to keep players safe, due to the increased number of fraudulent websites looking to take advantage of innocent players.
Will Crypto Casinos Have Longevity?
Of course they will! At least those who have entered the market with a goal to remain there. Unfortunately, the market is oversaturated with projects that are doomed to fail from the get go. The platforms that have invested themselves into the gambling industry, and are led by the people who are innovative but understanding of tradition will succeed and many already do.
Online crypto casinos that have already established themselves on the market are changing the gambling industry the same way Netflix changed the television or how Spotify has changed the music. It is not a change that came overnight. It is one that is slowly changing the industry that has been the same for more than a few decades, as far as its online version goes, and for centuries if we look at old brick and mortar casinos. Soon enough, we might be living in a future where crypto casinos are the norm. Bottom Line
While there are folks out there seeing the insurgence of online crypto casinos as a mere trend, we need to say that it is so much more than a simple and passing trend. Yes, they’re a novelty, but an influential one. Digital currency casinos are changing the way the online gambling industry works. For one, they offer a cheaper alternative to what’s already on the market. They do that while providing the user base with global access, which was not the case in the past with your standard online casinos that are still to this day mostly localized. Pair that with fast payment processing and increased privacy, and you get a winning formula.
Everything regarding online crypto casinos comes off as positive, and it is like that, yet you need to remain wary of any possible scams, different legal issues, and the volatility of cryptocurrencies. While these exist, there’s no arguing that we’re looking at an amazing business model which is currently growing. The profit is there for crypto gambling companies, with an amazing success of being able to minimize the need for so many middle men. In the future, we can expect the online gambling industry to take a turn in a new direction, carried on by the rising tide of crypto happening today.
