Blockchain technology is currently impacting the entire tech industry and its financial ramifications. In the online gambling industry, blockchain technology is opening up the field to new opportunities for both casinos and players, as the process enhances transparency and trust.
Although there are trusted online casino guides available such as Casino Range, one of the biggest challenges that online gambling platforms face is the lack of trust placed in them by players. Indeed, online casinos suffer from the reputation of being too opaque. Gamblers often have a hard time accessing their data. Players might also fear of having their account blocked, or suffering from severe delays in obtaining their gains once they’ve won. In short, the reputation of casinos hinders them from attracting more players. Blockchain could help alleviate this problem by making casino policies more transparent. The technology can store records of all games, bets, results, and gains. Players, when guaranteed the possibility to access their entire transaction history, can be more willing to trust the institution and the system. As such, the transparency inherent to blockchain technology will be a win-win for both casinos and players.
Even when a player trusts online casinos, they can sometimes be exposed to some hacking of their personal data. Blockchain technology allows for anonymity, therefore making it nearly impossible for hackers to steal users’ sensitive information. Thus, Blockchain can eliminate the risk of fraud on the part of both shady casinos and hackers. It represents a formidable opportunity, as fraud has traditionally been one of the biggest concerns for online bettors.
Blockchain can also make gambling legal for many potential players. This is especially the case for players who are currently at a loss since their banks will not let them use online gambling platforms. With blockchain technology, banks are yet to be involved. Indeed, financial regulators have, until recently, kept mum on the issue, and the regulation of cryptocurrencies is not currently part of any discussion. As such, a potential loophole may exist in respect to shady gambling practices, albeit under reserve of country-specific legislation.
However, it also makes for much safer gambling conditions as illustrated by the use of crypto-currencies, who are much more secure ways to collect winnings.
Blockchain technology, as some casinos use it, results in a complete decentralization of the gambling process. Some platforms allow any interested gambler to invest their crypto-currency into the betting or gambling platform.
Casino institutions can also benefit significantly from a switch to the blockchain approach. Blockchain-based accounting will ease the process, which is until now, based on the cash-in/cash-out process. Thanks to blockchain technology, a combination of KYC database and smart contracts, pre-automated actions, make accounting easier. The smart contracts, openly accessible, do not require any intervention on the part of users, and the data is readily available and cannot be tampered with. A mobile app can ensure biometric verification and therefore make the entire process unhackable. Besides, players could possibly be allowed to borrow money from each other, thanks to the same open policy.
Why not now?
The only disadvantage of blockchain technology for existing online casinos is that it is complicated to integrate into an existing structure. However, one cannot stop innovation, and existing online casinos must start kicking off the implementation project to stay on top.