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Blockchain and Gambling - compatibility and influence

· Bussiness,Gambling

The development of technology’s use in the last decades has constantly fueled controversial debates. Despite the voices that oppose this unstoppable trend, technology kept marching on, bringing new ideas to life and creating breakthroughs over and over again.

The blockchain concept is one of the latest ideas that is revolutionizing a field of expertise that seemed to be untouchable in its old ways: the financial domain. The changes blockchain technology proposes are bound to make the banks’ role become obsolete. But this innovation is proven to become much more important and the interest for it is growing well beyond that of overthrowing banks aside. It has been integrated into a multitude of other industries that follow the same fast-growing trend, such as the online gambling market.

How blockchain entered the world of gambling

The industry of online gambling itself is a controversial domain, with voices that take a clear stance against it. There are numerous regulatory battles, lawmakers from different regions, the US being the most relevant example, trying to stop short its expansion. However, the online gambling market’s progress keeps on growing at a pace of 9 percent each year, starting 2012.

Starting their race with success in about the same time, it was only a matter of time before the two controversial subjects became attracted to each other and now we have online casinos that use the blockchain technology. For instance, at , players can use different cryptocurrencies, like Bitcoin, Litecoin, or Dodgecoin, to finance their wagers. And given the advantages that using them bring along, blockchain will become online casino’s best friend in no time.

Real Advantages

The main setback that online casinos are facing is the lack of trust on behalf of most gamblers, especially those who fail to win big at their games. They often embrace the false idea that these Internet-based venues don’t offer even odds to all players, that they have immoral practices making the house win all the times. Following a point of view CMO of blockchain-based gambling and betting platform, this technology can be the end of all these unfounded speculations and put an end to the trust issue. Blockchain technology registers all records of the games, bets, odds, amounts, in a block of information, independent of all participants at the wager and impossible to hack. It increases transparency and ensures the records can’t be tampered with.

Using blockchain technology also means lower fees, as it cuts out the middle man out of financial transactions, namely financial institutions. International payments are finalized in a matter of seconds and, through this, it gives a bit of a break to gambling regulators, as well.

What does blockchain means for regulators?

A favorite notion that blockchain technology supporters often use is the disruption of the system. This means that using this idea can fundamentally change the patented, dusty, inefficient, old-ways. And as you’ll gather more information about blockchain technology and gambling, you’ll see that it does.

Online gambling regulators have had a hard time registering and tracking transactions in and out of the virtual account on online casinos, having in mind the prevention of money laundering. Banks are known to be biased against online gambling and often enough blocking transactions that involve online casinos. Blockchain proposes a peer-to-peer transaction, where both entities, the giver and the receiver, are known and through a system that doesn’t allow information of the transactions to be tampered with. It offers a stricter control, a higher degree of transparency, without banks to increase the risk of no-payment.

Blockchain in Gambling
Purpose of blockchain in online gambling

Blockchain is not a system that resolves all problems yet, but it can surely alleviate the stress of online gambling regulators and online casino operators:

  • It ensures the transparency that gamblers need to be convinced of the fairness of the game
  • Blockchain technology helps to reduce costs, by cutting out the intermediary of financial transactions and therefore the fees paid to them for these services
  • It lends out a helping hand to regulators, aiding in preventing fraud and money laundering through its system of transaction registration.  
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