How Blockchain Is Changing The Gambling Industry

Blockchain Use Case Series (5 part series — PART 2)

Katalyse.io
Jul 17, 2018 · 5 min read
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Blockchain technology is gradually creeping into every industry, and in the coming years, its presence will be felt like never before. One of the industries that this technology is expected to connect with to a deeper level is the gambling industry.

The major concern with conventional online casinos is that data such as; gaming results, winnings and payouts are intentionally hidden or partly concealed from public scrutiny. The integration of Blockchain technology into this industry is expected to resolve these concerns and many other problems that the online gambling community has been facing since the extension of gambling business to the internet.

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Image: stock.tookapic.com

Let’s explore how Blockchain technology will disrupt the gambling industry:

1. Transparency and Trust

The introduction of Blockchain technology will boost trust among customer and enable them to bet with confidence since Blockchain smart contracts verify records on a shared ledger that cannot be manipulated therefore increased transparency.

2. Reduce Fraud

Blockchain technology solves this problem by providing secure ways of transactions. Blockchain’s distributed ledger makes it an impossible task to manipulate anything in the system. Your winnings are automatically calculated and sent you. Thanks to smart contracts.

3. Paying with Cryptocurrency

Accepting cryptocurrency creates an opportunity for players to venture way beyond there regulatory jurisdictions since crypto is no dependent on regulated payment services. In addition, Blockchain technology will significantly reduce costs associated with withdrawals and deposits to casinos since it eliminates intermediaries such as banks.

4. Anonymity

Blockchain technology comes in to solve these issues with its anonymity feature. The feature ensures that users never have to share personal information when conducting transactions. Such a feature hinders hackers from accessing users’ data.

A good example here is Satoshi Dice- one of the very first Blockchain gambling sites. To bet, players were merely required to send Bitcoin to the provided address. As such, there was no need to download software, visit a website or even create an account.

However, this double-edged sword: guaranteeing anonymity is as good as ignoring AML and KYC regulatory requirement, and this raises questions on the legitimacy of crypto gambling sites. Consequently, crypto is often perceived to be linked with prohibited activity.

5. Token holder and Casino Membership

Zero Edge- a leading player in the gambling industry, has Zerocoin as its digital currency. To be a shareholder of the platform, users are required to purchase the zerocoin tokens.

6. Increase Accessibility

Also, unlike in regulated operators where withdrawal of wins can take several days to process and in most cases have minimum withdrawal amounts, in a Blockchain gambling site withdrawal of winnings is quick and there are no limits.

Crypto transactions will as well benefit operators since payments are irreversible, thus eliminating issues to do with fraud and non-payment.

7. Reduce House Edge Costs

Blockchain gambling sites will cut down fees and charge related to gambling transactions. This is because crypto-only gambling sites have little overhead costs compared to regulated service providers. This includes; licensing fees, transaction costs, payment to merchants, regulatory compliance costs and tax (if any).

Since Blockchain is automated to do functions that were previously done by human beings, it will significantly reduce fees and charges associated with gambling transactions, and therefore enable consumers maximize on profits.

8. Decentralization

For instance, Ethereum projects such as vSlice has created a system for token holders to automatically receive dividends when the platform generates profit. On the other hand, Wager provides a decentralized sportsbetting platform where event results are posted in real-time via a network of oracle masternodes.

9. Prediction Markets

Final Word

Blockchain Use Case Series (5 part series — PART 1): How Blockchain is Revolutionizing Finance

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Katalyse.io

Written by

Find talents and Fundraise Your Dreams

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

Katalyse.io

Written by

Find talents and Fundraise Your Dreams

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

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