Anonymous bitcoin gambling to threaten regulated markets

3 April, 2014

At first glance, crypto-currencies such as bitcoin and online gambling companies would certainly seem to be a match made in heaven.

This would certainly not be the first time that new technology has made inroads into the online gambling industry before any other industry. Given that the online gambling industry tends to be highly competitive and has a willingness to try anything in order to gain profits, it should be little surprise that online gambling sites have become an early adopter of digital currencies. In most instances, early innovations often lead to adoption in more mainstream applications. But existing corporate and high street gambling companies around the world are not warming to bitcoin because they see it as a mega threat. This has allowed pure bitcoin and provably fair gambling sites to emerge.

Currently, the acceptance of bitcoin in the gaming industry has led to questions of whether bitcoin gambling sites could potentially serve as a threat to the regulated market. It should hardly come as a surprise that bitcoin is gaining such traction in the world of online gaming. In fact, bitcoin gambling sites have so quickly become popular that they are already a threat to the regulated as well as unregulated markets. A large number of pure bitcoin gambling sites have sprung up and it is likely more will soon join them.

When it comes to accepting bitcoin has a form of payment, many smaller and often newer gaming sites view the acceptance of bitcoin has a way to set themselves apart from the rest of the industry. As the number of users adopting bitcoin continues to grow, accepting bitcoin also provides online gambling sites with the ability to tap into that rapidly increasing audience.

Bitcoin certainly acts as the perfect casino chip, albeit a digital one. By providing immediate access as well as the benefits of being completely private and irreversible, bitcoin provides a number of advantages that other forms of payment simply cannot. For instance, by accepting bitcoins, online gambling companies are able to extend acceptance to literally tens of countries around the world that are not serviced by the most common payment methods, such as PayPal, MasterCard, or Visa. Additionally, by accepting bitcoin, online gambling is also able to reach markets that otherwise have weak banking penetrations.

Recently, the gambling industry was taken aback when the Vera&John Casino became the first E.U. licensed online casino to accept the virtual currency. As a result, casino players will now be able to choose whether they want to make payments using a traditional currency or bitcoin. According to a spokesperson for the Malta-registered Vera&John Casino, they are proud to offer bitcoin to their customers as part of their commitment to innovation. The casino follows a practice of only allowing wagering to be conducted in national currency units. Through the implementation of allowing bitcoin only as a customer payment mechanism, the casino is able to eliminate the risk associated with exchange rates.

All total, the online gambling industry turns over billions and this is rapidly expanding thanks to mobile and tablet gambling. According to a report published by PBS, gambling comprised as much as 60 percent of all bitcoin transactions. Considering the fact that transaction costs tend to be relatively low and are completely irreversible, it is easy to see why so many gamers are attracted to online gambling sites that accept bitcoin. Gamers also favor bitcoin because they are able to receive their winnings immediately. There is no need to wait on deposits or bank wires and high fees, due to the fact that bitcoin works as its own payment processor.

While Vegas casinos often take a house edge of as much as 10 percent, pure bitcoin gaming sites frequently take a MUCH lower percentage of the winnings. The house edge for bitcoin casinos is often less than 2 percent!

Trailblazer sites such as BitZino and SatoshiDice led the way when it came to online gambling with bitcoin, but according to claims issued by Cloudbet, the sports betting site revolutionized the entire online gambling experience through the introduction of the first bitcoin betting platform that can be accessed from desktops as well as mobile devices. Cloudbet users are able to place immediate bets for any event in the world without incurring any fees.

Currently, the online gambling industry in the United States operates in an area that is somewhat legally ambiguous. As a result of both federal laws as well as state laws, online gambling remains illegal in the U.S. according to Forbes. Even so, since bitcoin is largely considered by many to be mere play money rather than real money, the potential is certainly present for relationships with U.S.-based players to be built.

Go to the home page and see the table with pure bitcoin gambling destinations.