Twelve years ago, when Bitcoin was invented, nobody could predict that this currency, which had absolutely no safety nets attached to it, would cause a global financial craze. In its first few years, Bitcoin was worth pennies; it’s now worth $48,000 (as of the time of writing this article). The nay-sayers realised their mistake and a swift change of opinion followed.
Soon after Bitcoin and other cryptocurrencies were recognised as legitimate, various vendors started offering their clients the option to pay with cryptocurrency. Previously, that was reserved for obscure online sellers and the Deep Web, but not anymore!
Online casinos, which are only becoming more successful during the pandemic, also began accepting some cryptocurrencies as a viable form of payment. Some though went even further. There are now online casinos, which solely operate with cryptocurrency.
In this article, we will tell you more about the trend of gambling with cryptocurrencies and we will take a look at pure crypto casinos.
The Appeal
So, why is that some players choose to bet with cryptocurrencies rather than regular, fiat currencies? Reason number one – anonymity. As the name crypto-currency suggests, this type of digital currency, using blockchain technology, is fully encrypted. This means that people living in countries where gambling is restricted, can still gamble by using cryptocurrencies.
This is because many countries are yet to regulate cryptocurrencies, and even further away from legislating their use for gambling. Gamblers from Asia, where your bank accounts might be under supervision for suspicious activity, do that daily. However, China recently banned crypto transactions, so more countries might unfortunately follow suit.
American players make use of similar legal loopholes. Those living in states where online gambling is not available or outright illegal bet at crypto casinos as the laws still only regulate gambling with fiat currencies. Sure, there are online casinos in the US, but they only accept players from states with legalized online gambling by tracking their geographical location.
Even if a player lives in a country/state with legal gambling industry, they might still choose to gamble anonymously by using cryptocurrencies. Some people make it a point to gamble with crypto in a bid against government intervention in their private lives. Moreover, your winnings go directly to you, not to your bank, which saves you additional charges; plus, you can instantly use the money.
Reason number two for the appeal – taxes. While most countries require you pay taxes on your winnings, some countries have yet to regulate profit off crypto gambling. Unfortunately, the US isn’t one of them and the IRS can knock on your door if you fail to disclose your crypto winnings.
Reason number three on the list – the economy. We can see from a mile ahead that the world is heading towards a global recession. The Covid-19 pandemic closed thousands of businesses and devastated economies worldwide. Due to the rising inflation seen all around the world, fiat currency is becoming less and less valuable.
You already take a risk when gambling, so why take two by using a devalued currency? It’s true that cryptocurrencies can be volatile, but at least they are not affected by the actions or inactions of governments.
Crypto Enters the Chat
The crypto emergence in online gambling appears to have happened overnight. One day we gamble at our favourite online casino, then the next we see that the said casino now accepts cryptocurrencies. No matter what your stance regarding cryptocurrencies is, it’s nice to see that operators expand their payment options to appease all sorts of players.
For now, the types of accepted cryptocurrencies are usually limited to Bitcoin and Ethereum. However, we notice that some operators have begun accepting more obscure and/or more volatile cryptocurrencies as well.
Crypto Casinos
There are now online casinos that only accept cryptocurrencies as payment. This used to be a thing you could only find on the Deep Web, but not anymore! These are legitimate businesses where you can legally gamble. However, make sure that you thoroughly evaluate an operator before you play; check their licenses and read reviews to avoid scams. This applies to all casinos, not just crypto ones.
It’s alleged that 50% of crypto transactions involve forms of gambling, which explains why crypto casinos are booming. One of the largest ones, Stake, is reportedly worth $1 billion. We gave you a few reasons for their success, so this number should be hardly surprising to you now.
As opposed to other online casinos, crypto casinos tend to accept most cryptocurrencies. The biggest number we’ve seen was around 200, so no matter what you have in your e-wallet, you can probably gamble with it.
Moreover, there are now even casino games modeled with crypto in mind where you can only use this type of currency. These games and others that accept fiat currency seem to have higher RTP’s in crypto casinos, which is yet another advantage.
Based on our research, we can say that crypto is here to stay and that the gambling industry is there for it.