More and more online casinos seem to accept cryptocurrency deposits worldwide. While both digital currencies and iGaming have been around for over a decade, the two have only recently started to come together. What is the reason why cryptocurrency in the gambling industry is becoming prominent and what are its advantages and disadvantages?
In this article, we are asking these questions from a Portuguese iGaming expert, Martim Nabeiro.
What are Cryptocurrencies?
First of all, we will explain briefly what cryptocurrencies are. Cryptocurrencies, such as Bitcoin, are digital currencies that use blockchain technology. This technology is decentralized, meaning that there is no need for any intermediary to verify the transactions. A digital record of all the transactions is made in a ledger and the data is distributed to create a record of the asset’s history that is accessible to the public. This way the data is secure, tamper-proof, and cannot be disputed.
The Advantages of Cryptocurrency in Online Casinos
If you own cryptocurrency, there are many reasons why you should use it during your gambling sessions. You can check out a list of casinos that accept players from Portugal on comparison sites such as casino online legal. Reading the review will let you know if you can use Bitcoin or other cryptocurrencies in these casinos. These are the main advantages of crypto deposits:
Blockchain technology records all the transactions and stores them on a decentralized ledger.
Blockchain technology records all the transactions and stores them on a decentralized ledger. It is almost impossible to break into this system and once in, data cannot be removed, altered, or anyhow tempered with. Also, the risk of duplicate transactions is eliminated so there is much less space for error.
In order for merchants to process financial transactions, a whole lot of data is required such as the customer’s name, address, phone number, etc. Many players feel wary about how their data will be used and are not happy leaving them with the casino. When you pay with cryptocurrencies the need for leaving your data is eliminated because crypto transfers are immediately validated by the public blockchain. Similarly, if you don’t want traces of your gambling activity (e.g. on a bank statement or credit card bill) paying with crypto is a great option.
- Instant, cost-effective transactions
When players pay with cryptocurrencies, the transactions are instantaneous because no bank, intermediary, or other third party needs to verify the transactions. While with bank and e-wallet transactions there could be a security flag, a daily limit or card limit reached, or simply a system failure, these are not issues with cryptocurrency payments.
Also, fees are eliminated with cryptocurrencies as there is no central authority involved who would want to make a profit on transactions. When people pay with a credit/debit card there are fees that are paid by the casino or both the player and the casino. Often e-wallets have fees involved too. However, cryptocurrencies have no hidden fees.
- Easier registration
Online casinos that accept crypto payments often offer a very simple registration procedure where you only have to enter your email address and come up with a username. There is often an instant play option so you don’t have to waste a second filling out forms. This attracts lots of new players and is therefore very beneficial for the casino.
The Disadvantages of Cryptocurrency in Online Casinos
The main drawback of the acceptance of cryptocurrencies in the iGaming world is compliance. Even though cryptocurrencies are completely mainstream now and easily buyable on platforms like Revolut, the regulatory world hasn’t caught up with them and they can’t be used legally in many industries yet.
European regulators such as the MGA or the UK Gambling Commission don't license any casinos that accept cryptocurrencies. At the moment, players can mainly find only Curacao licensed casinos that accept Bitcoin and other cryptocurrencies. We do expect this to change in the future and maybe as early as a year from now you could be depositing Bitcoin in a European licensed casino.
Cryptocurrencies are becoming mainstream payment methods and they have lots of advantages. For now, you can pay with crypto at Curacao-registered online casinos only but an imminent change is expected in favor of crypto-legislation.