The bond between bitcoin and the online gaming sector is obvious. The cryptocurrency seems to be perfect for the industry given the benefits it offers live casino operators. Still, it may not be clear what impact the digital currency has on the live gaming providers and why. In a recent conversation with the operator of bitcoin casino Betbit, Dan Michaels, we found out how the digital currency has influenced their business.
Betbit.com is the Malta-based live casino platform specializing in the live dealer games and accepting digital currency as the means of payments.
When asked about the positive impact of bitcoin integration, Dan commented: “That’s easy, the biggest advantage of using bitcoin is the cost savings of deposits and withdrawals. When we first started our transactional costs were about 10% of the revenue. During the last 10 years we have found that the costs have been gradually increasing. Currently, at around 20%.”
“I can confidently say, the merchant banks are taking in more revenue than we are. Especially in our niche, where the cost of quality live gaming is significantly higher than other RNG based operations. The second reason would be the automatic nature of the deposits and withdrawals. Players now do not have to wait to withdraw their funds. There is no cashier that manually processes the deposits or withdrawals. This certainly adds value to the player experience,” he continued.
After launching Betbit.com, Dan recalls, they expected high transaction speed as well as low fees. The team has found that the speed was much lower if compared to traditional payment methods, such as MasterCard and VISA. For the purpose of security, they have to raise that time and wait until 2 confirmations before transferring money to the player account. Both speed and cost of transactions have significantly increased in the last eight months.
“We have recently added multiple cryptocurrencies as a form of deposit and withdrawal in order to help solve those issues. We have experimented with ARK and QTUM with great success.”
When asked about the perfect digital currency for use in the online gaming sector, Dan believes that bitcoin is now the best one.
“Well, at the moment we see the promise of bitcoin, but in order to make a high quality experience for our users we will need to see much faster transactions times. Transaction fees are also on the rise. We would like to attract the entire spectrum of players. We feel if a player would like to make a micro transaction they should be able. Presently, you it cost you €6 to make a €3 deposit. Obviously, there is room for improvement. Our ideal cryptocurrency would be as fast as a conventional credit card, negligible cost, and stable value,” he said.
According to Dan, despite the convenience of using bitcoin, many players still don’t understand what it is and how it works. However, this is already changing as more players are starting to use the cryptocurrency.
Despite the slow transactional speed, high fees, and inconvenience, using digital currency is still a winning business strategy for the casino. By far, lower transaction costs trump these issues. By cutting operational costs, Betbit.com will be able to compete with bigger live casino brands in the future.