How Cryptocurrencies Have Impacted the Online Gambling Industry

April 25th, 2018 at 6:43 am UTC · 4 min read

Through this article, we’ll review the main reasons why blockchain has had such an impact among gamblers and we’ll analyze the most important consequences of this mix.

Since the very beginning, the combination of cryptocurrencies and online casinos showed to be a perfect match, online gambling has been showing a notorious growth in popularity in recent years, that of course matched perfectly with the incredible popularity trend of cryptocurrencies. Both reputation trends allowed to captivate more tech savvy gamblers to certain online casinos.

Cryptocurrencies started gaining popularity at online casinos not only due to their increase in popularity, these currencies offer special benefits that other traditional funding methods at online casinos can hardly compete with.

Firstly, is the discussion of whether cryptocurrencies are considered as currencies or not by local laws, as several countries don’t classify them as other currencies; gambling with cryptocurrencies isn’t betting with real money, therefore gambling legislation don’t apply for them.

Allowing users to gamble online in some places where the legislation forbids real money betting, offering secure and transparent transfers and the very low fees per transfer, are the main factors that intervened in the positioning of cryptocurrencies at the online gambling industry.

As it could be expected, Bitcoin was the first cryptocurrency to gain terrain at online gambling platforms, little by little more online casinos started adding it as a payment method available at their sites, however Bitcoin followed another trend within the online gambling industry; the rising of new, small and specialized gambling platforms.

In latest years we’ve witnessed the appearance of Bitcoin casinos , specialized casinos that only operate with this cryptocurrency.

However, the expansion of cryptocurrencies was very accelerated and, in a short period of time, several new cryptocurrencies appeared in the market, so online gambling platforms understood they needed to increase their funding method listings to include the most popular ones among gamblers, a small group of cryptocurrencies gained great position within the gambling industry, in addition to Bitcoin, coins like: Ethereum , Litecoin, Ripple and Dogecoin are some of the most reputable cryptocurrencies that you’ll find in the vast majority of online casinos.

Another important trend that is revolutionizing the online betting system are the blockchain gambling platforms. Using blockchain technology several companies are now offering a different betting system, a more fair and transparent one that gives users instant access to earnings, trackability for every transaction and also 0% house edge.

An important aspect of blockchain casinos is that they are not necessarily restrained to payments with cryptocurrencies, the usage of blockchain technology offer multiple advantages for online gamblers and having the possibility of using their preferred payment method is also one of them.

Last but not least, there’s a very specific market segment that has seen cryptocurrencies as a special added value for their growth; eSport betting platforms.

The eSports community has been not only growing in popularity but also strengthening the relation with its fans, the clear expansion of this industry has also been translated in more eSport tournaments covered by online bookmakers and also by the appearance of specialized eSport betting platforms, among which a great number accept cryptocurrencies as a payment method.

However, there are some platforms that decided to take one step forward; companies like Unikrn created their own cryptocurrency (Unikoin) to place bets on their platform. Unikrn is one of the biggest eSports betting platform that cover a wide range of tournaments around the globe, and found a way to cover American gamblers as online sport betting is still mostly prohibited in the United

States, betting with this cryptocurrency is legal because it can’t be changed in other cryptocurrencies or money, instead; gamblers can use their betting earnings to enter to raffles and jackpots to acquire game items and more Unikoins.

The list goes on, everyday more companies at the online entertainment industry look at cryptocurrencies as an innovative way to attract more users and the online gambling market keeps showing disruptive ways of making it one of their most relevant growing trends.