Bitcoin in the online gambling industry: advantages and issues

When the Internet became global and accessible to everyone some 20+ years ago, it opened the way for the online gambling industry. Years have passed since, and it is clear now that the virtual gaming area in its present form is capable of modifying other industries as well. In many counties, online gambling is the object of intense legal regulation, but the companies seem to be successfully overcoming the state-imposed obstacles to continue with their businesses. Several years ago, the new Bitcoin-based payment solutions based on block-chain technology came into being, and that was the moment when millions of online gamblers all around the world felt their lives were becoming much easier. The Bitcoin system turned out to be not only a great opportunity to make instant P2P-transactions and cut down on operational costs for both players and Bitcoin casino operators, but also brought online gambling to countries and jurisdictions where traditional real-money gambling portals are officially prohibited.

As mentioned above, Bitcoin is known for its apparent advantages over electronic payments and wire transfers in ‘regular’ currencies. The cost of every single transaction for a Bitcoinpayment sender is as minimal as it can possibly be, and that is one of the main reasons virtual casino and betting website owners all over the world are considering the option to switch to Bitcoin and thus solve certain issues they have with real-money payments once and for all. While low commissions may be just one of the benefits enjoyed by the users of the cryptocurrency, they can become one of the likely causes for BTC to start establishing itself in other areas as well, apart from Bitcoin gambling.

Some three years ago, the estimated amount of gross winnings in the virtual gambling entertainment market marked about €22 billion globally. As estimated in late 2014, the industry is expected to grow approximately 9% annually, and these aren’t just some empty words. Specialized software developers and providers of Bitcoin payment solutions and services claim to be getting a steady surge of requests (literally, hundreds of them) from gambling website operators asking to have their businesses converted into Bitcoin-based systems., one of the world’s most popular and innovative Bitcoin casinos, has achieved powerful success in less than two years, and, as their manager Tauri Tiitsaar points out, if you’re a part of the company  involved in the Bitcoin gambling industry  “you need to make sure you are ahead of the pack, that your users are happy and you are making the innovations, not following them. The main challenge with Bitcoin is our continual effort to globally educate as many people as possible to the new digital currency revolution. Our goal, mission and responsibility, as one of the biggest brands in the Bitcoin world, is to help increase the global adoption of Bitcoin”.

What manager may be hinting at is the possible fear of using the cryptocurrency still common with hundreds of millions of potential users all around the world. However, there also may be other challenges that Bitcoin needs to struggle against, including regulation perplexities in many countries, as well as the prohibition to use bank payments for betting purposes in the United States. Time will tell whether BTC and its lobbyists are strong enough to deal with these issues.

Guest Post - David Barton