Welcome to Finextra We use cookies to help us deliver our services We’ll assume you’re ok with this, but you can change your preferences in our cookie center
Please read our privacy policy

Bitcoin has become mainstream over the past four years, and with it, many online casinos have started to accept cryptocurrencies.The main advantage of blockchain technology used in the online betting industry, gambling and casinos is that it provides transparency in
database transactions

Currently there are many new and upcoming open source lotteries, for example, in which the return-to-player ratio is generally kept a secret.And although players are generally skeptical, perhaps assuming it does. was acting from a fraudulent site, they can see using the blockchain
exactly how transactions are handled, solving this problem When playing online using blockchain, if you lose your money you can see where it is going in the system This means you can see exactly how much the website is making from your deposit and how
trustworthy the site is

In the coming years, the use of blockchain in online betting or casinos will accelerate and become even more common.We are already seeing projects that are disrupting the space by basing their infrastructure entirely on payments. blockchain This gives
peace of mind for their players and is proving increasingly popular

Many online gaming sites that host non-traditional games like blackjack or poker are not regulated by the UK Gambling Commission or the Malta Financial Services Authority (MFSA) If this is the case, these sites often do not offer any information about
how they select the winners, who wins and if the winnings are returned to the players As such they could be a scam site

Blockchain solves this problem for customers because in this context it replaces the need for these regulators.Due to blockchain technology and transaction transparency, you can see what is happening to your money and your deposits, as well as
visibility on which the loss of another player added to your winnings It will also be clear how much the site earns for each trade, ensuring that players do not feel cheated

There isn’t a great intersection of people interested in both gambling and cryptocurrency Gambling has been around for hundreds of years, yet crypto is a relatively new concept. , so it mainly attracts younger and more tech-savvy people

Those who are interested in gambling are drawn to it for entertainment and are generally not afraid of losing their money. For the younger cohort, however, gambling is generally not appealing because they want to see a return on their investment but also understand
that the house always wins, so it’s a risk

For this type of person, crypto is a medium of transaction, similar to those who do currency trading (Forex) if they invest in cryptocurrencies such as Bitcoin or other well-known currencies, and keep them there long term – we are talking about years, not
days – they will see a good return

The risks are the same for cryptocurrencies and fiat when it comes to getting scammed, some lesser-known sites aiming at stealing funds or refusing to pay, although how this is done may to differ But there are also ways to reduce the risk for currencies and
it is essential to use well-known gambling sites

If games hosted by online gambling or betting sites are audited by a regulatory agency, as they should be if they work with fiat, the games are very unlikely to successfully rip you off. That being said, the site itself could still try to rip you off, perhaps by
say that the player has not provided the correct documents or try to avoid paying if the player wins

It is ultimately safer for players to use crypto-based gambling sites due to the transparency of crypto and blockchain, allowing players to track and trace their funds However, crypto-based crooks have less work to do to achieve their goal.For example,
they don’t have to integrate a normal payment gateway into their site or have escrow funds.It allows the site to steal your crypto or refuse to pay, simply because it is not regulated

Anyone can make a website, host games and pretend it’s a gaming site, asking users to deposit cryptocurrency to start playing But then it doesn’t work Unfortunately, it’s actually easier to create a scam site like this, but the good news is that crypto is getting
more mainstream so there are already established gaming sites using it, and as such the likelihood of being scammed is much lower

When it comes to blockchain, crypto, and gambling regulatory issues, it is critical to locate the source of funds if players are making a deposit using credit cards or wire transfers , it is much easier for regulators to trace This is because they need a bank account, and
in order to open a bank account, they must first provide identification and perform verification checks

In addition, banks must prevent money laundering and will ask the account holder about unusual activity or where the funds are coming from.But with crypto, users can send a deposit to a wallet ID, and as it is unaudited, money can come from anywhere,
and any type of activity

Regulators want proof of where the money is coming from but cannot force players to reveal this information And, if site operators do not have strong measures to ask for the source of the funds, it will not be possible to trace its origins It is
for these reasons, this crypto is unfortunately the best way to launder money

Crypto-based gambling sites should be regulated in the same way as those operating with fiat, complying with regulations and requiring customer identification, such as date of birth, as well as request from the source of funds However, this is not
often done for crypto sites as it is not a prerequisite

In addition, many gambling sites are based in countries like Georgia or Armenia where they are not as regulated or supervised While many payment gateways do not provide their services. to sites based in risky jurisdictions, crypto-based sites
thrive there because they don’t need to ask permission to accept payments

Regulators are trying to be stricter and put in place policies for crypto-based transactions, but it’s going to be a long journey and a hard road to go for now, as long as players accept the terms of use, it is up to them to decide whether
believe that the site is not fraudulent

August 28, 2020

2

5

3

3 hours

0

22 Feb

0

1

22 Feb

0

1

1

22 Feb

0

Subscribe to news

Register

Crypto

World News – AU – How are crypto and blockchain used in the gaming industry?

Source: https://www.finextra.com/blogposting/19885/how-are-crypto-and-blockchain-being-utilised-in-the-gaming-sector