Some things you need to know about crypto casinos
Crypto casinos are seemingly all the rage these days.
In this article we're going to consider:
- The rise of crypto casinos
- What is a crypto casino?
- How many people are playing at crypto casinos
- Benefits and drawbacks of crypto casinos
- Should you...?
The rise of crypto casinos
One of the hottest trends in online gambling, players have been drawn on the promise of a more anonymous experience, with faster, more secure payments on the blockchain. The popularity of crypto casinos has soared as a result of influencers and celebrities, particularly on platforms like Twitch and Kick.com, which have helped raise the profile as an alternative to the mainstream.
For all the buzz around cryptocurrency and blockchain technology, it’s a part of the gambling industry still very much in its infancy. For many players, there's still a mystique around crypto casinos and their potential, while for others, the benefits won’t even register as something they’re missing. Ultimately, it remains to be seen whether or not crypto casinos are a fad. This seems unlikely though, given that recent reports show 79% of business owners are happy to incorporate crypto payments, so why would the gambling industry be any different?
One major obstacle for this payment option in the UK is that, as it stands, cryptocurrency isn't currently viable for casinos because they prevent the operator from meeting UK Gambling Commission's licensing requirements. The anonymity associated with crypto goes against the ethos of deterring money laundering and protecting vulnerable players. Perhaps this should act as a warning for players, despite the perceived security afforded by the blockchain and its popularity elsewhere?
Regardless, it looks certain that the synergies between blockchain, cryptocurrency and online gambling are here to stay while many UK players remain curious about crypto casinos.
What is a crypto casino?
A crypto casino takes deposits and pays withdrawals in cryptocurrencies, such as Bitcoin and Ethereum. In some cases, crypto casinos are exclusively crypto, so will only accept deposits and withdrawals in their supported cryptocurrencies. These payments are sent to and from a third-party crypto wallet, with cryptocurrency bought and sold on crypto exchanges. Sometimes, a crypto casino will operate a hybrid model, accepting both fiat and crypto currencies that are converted into one common coin (usually USD) for use on the site.
Crypto casinos are typically powered by blockchain, which brings with it a host of specific advantages. In particular, there’s a clear audit trail for every transaction, and for every result ever written to the blockchain. Blockchain records are permanent and immutable, so they cannot be edited after the event. This is helpful from the point of view of giving evidence that games are fair, while allowing for payments to be processed quickly and cost-effectively in both directions.
How many people are playing at crypto casinos?
Good question. The underground, unlicensed nature of crypto gambling mean it’s difficult to get an accurate or consistent picture of exactly what is going on. Estimates vary wildly, depending on the source. One website, in October 2023, estimated the crypto gambling market was worth $250M. This differs considerably from another who put the market value at $4.6 billion in 2022. Crypto casino Stake reported revenue of $2.6 billion in 2022 – potentially over half the market spend! Other forecasts have crypto casino revenue reaching a staggering $65.7 billion in 2027. And in a 2022 article, Yahoo! Finance projected revenue of $93 billion by the end of 2023!
It's a stats minefield! One thing we can be certain of is that the crypto casino segment of the industry is growing at a rapid rate.
What are the benefits of crypto casinos?
- Fast, secure payments: payments handled in cryptocurrencies can be fast, secure and low cost, direct to and from your crypto wallet
- Provably fair games on blockchain: blockchain tech allows for ‘provably fair’ games with automated settlements, with an audit log written to the blockchain – an important feature for inspiring trust in the unregulated environment
- Pseudonymous gambling: crypto casinos allow for pseudonymous gambling, with no need to verify ID under KYC (know your customer) processes, or to attach your banking information to your gambling
What are the disadvantages of crypto casinos?
- Unlicensed and unregulated: arguably the biggest downside, crypto casinos operate in the ‘wild west’ of the unregulated gambling market, with no player protection or assurances that you’ll ever see your money again
- No age gating: with pseudonymity comes a lack of age verification, along with a host of other important protections to ensure safe and fair gambling
- No responsible gambling protections: operating outside of the regulated environment, there is no requirement for responsible gambling tools or measures at crypto casinos
Conclusion
While there’s no denying the benefits of crypto casinos, there are some serious concerns around player safeguarding that cannot be overlooked. While the benefits of provably fair games, fast and secure blockchain payments and a more flexible way to gamble stack up on one side, the disadvantages – particularly lack of regulation – should be enough to dissuade, at least for now.
In due course, the UKGC may decide to extend regulation to cover crypto casinos. But for now, it remains a murky area, and one that's leaving players vulnerable to exploitation and a less fair playing experience.
Your best bet is still to find licensed regulated UK casinos, the likes of which we recommend at Slot Gods, following our meticulous and unbiased reviewing process. While crypto casinos have their appeal, it’s only these regulated casino sites that can guarantee you fair treatment within the framework of our gambling laws, so you can be assured of a safe experience.