Cryptocurrencies gaining on traditional payment methods in online casinos

Blockchain technology is overtaking more traditional payment methods in a number of spheres, but the online gambling sector seems to be the first to fully embrace cryptocurrencies, and with new regulation expected from the MGA, another step has been made towards full acceptance of cryptocurrencies in online gambling.

What is Bitcoin?

A blockchain consists of a continuously growing list of records. These ‘blocks’ are linked and secured by means of cryptography, containing a cryptographic hash, a timestamp and transaction data. Since it is typically managed from a peer-to-peer network, it is much more resistant to modification and fraud. Once data has been stored in a block, it cannot be altered retroactively without altering subsequent blocks. The most famous cryptocurrency, Bitcoin is based on this technology.

Bitcoin Popularity

Bitcoin has seen a skyrocketing popularity since its inception in 2009, and it is easy to see how online casino and Bitcoin or other cryptocurrencies, are a match made in heaven. The use of cryptocurrencies is relatively anonymous, transactions are instantaneous, and there is no middle man involved. In other words, perfectly suited to the needs gambling industry and its clients. That is not to say that online casinos have not faced certain challenges to implement cryptocurrencies. One of the main problems casino operators have faced in the past is that of legislation. All casinos where UK are recommended to play are regulated by the UK gambling commission. And, since cryptocurrencies are not regulated by the UK, EU, or any other national or international governments, legislators have been reluctant to licence cryptocurrencies on gambling platforms under their jurisdiction.

This of course, has not stopped dozens of Bitcoin casinos from popping up, many operating from areas with dubious legislation, or simply with no legislation at all. This means that there is no government institution regulating the quality, pay-out percentage, or fairness of the games. Playing on these unlicensed casinos is simply not recommended, as players simply cannot know if the casino they are playing on can be trusted with their hard-earned digital treasure.

Bitcoin Regulation

This is all about to change however. In December 2017, The Malta Gaming Authority (MGA) has announced its interest in regulating Distributed Ledger Technology (DLT) and cryptocurrency projects. In a statement on their website, they called for all parties interested in these two markets to apply for test projects that would allow safe and reliable application of these two technologies. The aim is to work out guidelines that will ensure consumer safety and fairness, while keeping in line with Maltese and international jurisdiction and ensuring no active contributions are made to funding international terrorism and money laundering. After test projects with various operators, the MGA aims to publish a list of guidelines and operating procedures in the first quarter of 2019.

As the leading regulating institution of most online casinos operating in UK and EU markets, the MGA is taking a crucial step towards legislating and normalizing cryptocurrencies and DLT. This comes at a time when most online casinos are already based and operated from Malta, accounting for a considerable percentage of its GNP. At the same time, Malta is looking to attract even more business, and is trying to entice blockchain companies to its shores as well.

Use of Bitcoin In Online Casinos

Already, major operators like software provider Greentube and lottery website Lottery.com have adopted Bitcoin as a payment method, offering Bitcoin lotteries, slot games and even live casino to Bitcoin gamblers. Other providers are also developing specific content for cryptocurrencies, as well as adapting their existing content. This means that soon all game types and content that cash players now enjoy will we available to Bitcoin or cryptocurrency players as well. Even now, the list of casinos that accept bitcoin is only growing. CasinoPilot is one of the websites that lists safe, regulated Bitcoin casino site in UK that have best pay out options.

Other Popular Payment Options & Uses For Bitcoin

There are, however, other ways to play with bitcoin on a regular casino. Most casinos use common payment methods such as VISA, Mastercard and Bank Transfer, augmented with digital wallets such as Skrill and Neteller. For advanced players and professional gamblers, these digital wallets have become increasingly popular. The speed of transactions and ease of use are an easy explanation. But recently, there is an additional reason for using Neteller. Netteller has also smelled the digital gold and now allows you to deposit Bitcoins on your account, without any fees. The deposit is instantaneous. The Bitcoins will automatically be exchanged for a cash amount in the currency of your account, according to a variable daily price. Since most casinos do accept Netteller transfers, it will be no problem for players to transfer their funds to a casino account, their winnings back to their Neteller account. Of course, if you want your Neteller funds withdrawn as bitcoins, that is impossible. You will simply have to buy new Bitcoins with your Neteller funds, luckily, there are plenty of bitcoin merchants that accept Neteller.

The popularity of Bitcoins is not limited to the online casinos. Recently, Las Vegas land-based casinos have joined the Bitcoin bandwagon. Even though money laundering scares have so far prevented the Nevada Gaming Control Board from creating policies to govern Bitcoin and other cryptocurrencies in gambling, many Las Vegas casinos support cryptocurrencies. This support is still limited however, The D Hotel and Casino in Las Vegas, for example, accepts Bitcoin as a payment for hotel lodgings and meals, and has a Bitcoin ATM installed on its property. For gambling, however, a withdrawal must be made, and chips still need to be bought using old fashioned cash.

Final Thoughts

Money laundering scares, as well as taxation issues, are behind most (gambling) legislators’ aversion to cryptocurrencies. However, with the new rules soon to be set by the MGA, it is conceivable that most European online casinos will offer various cryptocurrencies with a few years. How these regulations will come about without affecting what makes cryptocurrencies attractive in the first place, especially the anonymity, remains to be seen. As soon as the MGA publishes its new guidelines for BLT and cryptocurrencies, we could see a host of Malta-based online casinos popping up with full legislation and player protection.

The post Cryptocurrencies gaining on traditional payment methods in online casinos appeared first on Bitcoin Garden.

Komentar

Posting Komentar

Postingan populer dari blog ini

Transformation of education in post-industrial society

Gambar
Education has always been an expensive privilege; and the education sector has always been one of the most conservative. People chose profession once in their life and did not change it until retirement. Usually education meant studying at a university; self-taught people were rare. However, in the post-industrial society changes in the shape, sense and affordability of education finally began. According to Alvin Toffler, a well-known US sociologist, the emergence of the post-industrial society is a consequence of the intellectual revolution. The possession of knowledge and information will replace financial capital as the biggest value. Development of innovations, empowered by the most educated, will become the most important sector of economy. It means that high-quality affordable education will become even more important than now. The last time when the global education experienced a serious transformation was at the very beginning of the 21st century when the wide access to the I...
Baca selengkapnya

Blockchain Supply Chain Forum will be held on January 10th in Hong Kong

Gambar
The concept of a blockchain – a distributed, tamper-proof and time-stamped database of transactions that can be managed without intermediaries – is highly attractive in the supply chain domain, and the industry has launched a number of proof-of-concept initiatives. However, awareness of how blockchains work and what they can accomplish for supply chain is still relatively low. The lack of knowledge is exacerbated by the fast pace at which the technology is evolving. A success Blockchain Supply Chain Forum was held on October 24th in Shanghai, professional blockchain organizer EventLinker and Global Supply Chain Council will organize the Blockchain Supply Chain Forum on January 10th in Hong Kong, it is the forum connecting blockchain experts, supply chain and logistics decision makers and tech innovators. This intimate gathering will explore how companies are investigating the use and deployment of the technology to help their supply chains in China. Organizer: EventLinker ...
Baca selengkapnya

After GDPR effect? In A Post Cookie World, Blockchain Is Rising

Gambar
The European General Data Protection Regulation (GDPR) was rolled out in May this year. It introduced far-reaching implications for companies which process personal data related to EU citizens. Even those far outside the EU could not fail to notice this change. Email inboxes were overflowing with opt-out reminders. Cookie banners now obscure many websites, forcing users to agree to a privacy policy so that they can browse the content on the site. Although the GDPR document itself clocks in at 88 pages, the majority of what it covers can be summed up in one word — consent. If companies are processing personal data, it must be done with the explicit, informed consent of the individual. For some forms of marketing, such as email subscriber lists, this involved minimal changes. Individuals already have to take the active step of providing their email addresses, and usually it is pretty clear why they are asked to do so. However, for the digital advertising industry, consent is far less ...
Baca selengkapnya