How Blockchain Technology is Taking the Gambling Industry to a New Level

Gambling is one of the oldest traditions. In ancient times, people used different objects, like stones or shells, to play in the “casino.” In the 21st century, companies try to continue this tradition, and we can see a great variety of gambling arenas like casinos and bookmakers allowing users to place bets, earn bonuses and participate in prize drawings. Online gambling attracts the attention of gamers since they can win big cash without leaving their homes. But does it work in practice? And what are the risks?

Online Gambling: The Hidden Issues

Despite the high popularity of online gambling today, this industry has certain pitfalls:

Lack of necessary control

A big problem with online casinos and slot machines is they don’t provide data, like winnings, gaming results, payouts, etc. All of this information is deliberately hidden or partially obscured from public scrutiny. Moreover, unlike traditional slot machines, gaming devices make it necessary to redraw and mechanically change the machine to fool players.

Of course, lack of trust in the online gambling industry is an issue. That’s the main reason a lot of online casinos try to implement blockchain solutions based on cryptographic technologies. This ensures full transparency and accountability of the games, and finally proves the fairness of the whole online gambling a to the players.

Long process

In most cases, especially if gamers are engaged with more than one casino, it’s necessary to submit individual documents providing information as the player’s name and credit card number to the website operator. This method can be quite time-consuming, and many operators want to avoid it.

Storage of funds

Another issue of online gambling is the complexity of processing and control of funds both for players and operators. Each gamer needs to have an approved account with every operator to access their funds. The operators don’t have direct access to Player’s Liability Accounts, where collective players’ funds are stored. Thus, there is a risk of reputation loss.

Blockchain Is a Win-Win Solution For The Gambling Industry

Blockchain technology has become a solution to the problems in different industries. The online gambling industry has a lot of issues, and blockchain has come along just in time to save the situation. How can blockchain technology save the gambling world?

Anonymity

Sometimes casinos ask players to supply individual information or documents when creating and verifying their accounts. The process is quite lengthy. Blockchain technology has an anonymity feature. It does not require users to give personal information when conducting transactions. This feature hinders hackers from accessing users’ data.

Openness and reliability

In the past, online casinos have used some tricks and scams to steal from customers right under their noses. Fraud made many players worry and keep away from the industry. If gamblers stay away, casinos can’t make money. Blockchain technology can change this and easily boost trust among customers and let them bet with confidence. Blockchain smart contracts verify records on a shared ledger that cannot be manipulated. This approach effectively increases transparency.

Payment Methods

Many websites and companies accept crypto currencies as a form of payment. Crypto currencies are becoming the popular payment system. They offer users the opportunity to gamble online anonymously. Gamblers are able to get a much more secure way to collect winnings. Moreover, it’s a direct cost savings for casino websites, which can improve profit margins, since casinos using crypto currencies are able to bypass cash handling commissions.

Decentralization

Blockchain makes it possible for almost everyone to become a user of casinos because it provides full democratization of the processes. That’s why some platforms allow gamblers to invest crypto currencies in the gambling establishment, for example, sports betting platforms using a blockchain network.

For instance, Bitbook.ag, is a global gambling and betting platform offering games. The transactions are streamlined through Smart Contracts on the Ethereum Blockchain, thus making it a fully transparent online casino. The company provides a betting and gambling experience, BXK tokens and games of different kinds to gamblers around the world. Its sportsbook offers odds on major sports from worldwide European soccer to American football, baseball, hockey, basketball and more.

Bottom Line

Blockchain technology is a novelty for the gambling sphere, but its new solutions and full transparency can make a great impact. This technology brings new rules and is evolving to enable auditing, monitoring and record keeping for every part of the supply chain. Now players are able to look inside their favorite online slot machines and be sure they are protected.

This story is published in The Startup, Medium’s largest entrepreneurship publication followed by +418,678 people.

Subscribe to receive our top stories here.