Security, transparency, traceability: Cryptocurrency in igaming

The first crypto casino was launched by the pseudonymous Satoshi Nakamoto in 2009, in tandem with the launch of Bitcoin. But despite being a provably secure payment method and experiencing unprecedented growth in popularity, cryptocurrency deposits remain relatively unleveraged, prohibited by state regulators, and available only at offshore casinos that are regulated by a remote-gaming jurisdiction.

Fiat currency wagers still make up the majority share of worldwide gambling revenues. However, the landscape of online gambling payments is ever-changing, and more cryptocurrencies are slowly but surely beginning to increase in popularity.

“Crypto casinos are actually very similar to all other online casinos; the main difference, of course, is the currency with which they trade”, says Glazaite. “They face exactly the same challenges as those seen across the market when it comes to things like acquisition, retention, and product offerings.”

“I don’t think it’s likely they will be as common as traditional casinos any time soon, as the dollar especially is much more recognised when it comes to cross-border transactions,” Glazaite continues. “However, crypto is important when it comes to segmentation.”

Discussing the obstacles that crypto operators face, Glazaite describes how the pool of potential players is much smaller than at traditional retail or online casinos.

“The biggest challenges are similar to those you see across the online casino industry, but a more specific challenge would be how you target the specific type of audience that may wish to play with a crypto casino. Even in countries that have the highest share of crypto penetration, the number is around 25%.”

Meanwhile, operators who serve multiple jurisdictions often encounter issues when attempting to implement cryptocurrency payments to their sites.

“While crypto may be a large market when combining the geographies, it’s still not considered mainstream in any one geographical territory, so operators will have to work out how to split their marketing costs when trying to grow crypto casinos across the different territories.”

According to Glazaite, one key to a successful crypto casino is to offer as many different currencies as possible.

“Many will already use Bitcoin and Ethereum. You have to expand on that while also ensuring that everything from the crypto wallet to the solutions that enable players to wager, deposit, and withdraw, are all second to none.” In 2023, around 74% of crypto gambling transactions were facilitated with Bitcoin, with Ethereum taking second place.

Glazaite also describes how crypto casinos are being primed to provide a newer, more innovative online gambling experience to players around the globe. “Crypto casinos have become the latest innovation because they are set up well to provide a new kind of experience, and I think an important part of that is NFTs; this is where we are likely to see more innovation.”

Most internet users will remember the NFT boom of 2021. After such a huge spike in interest, NFTs appeared to have lost momentum. However, they have been quietly making waves in the online gambling world, with some crypto casinos beginning to integrate them into their igaming platforms.

NFTs present distinct advantages when implemented at online casinos. For starters, they aren’t geographically restricted. They are not a fiat currency like a dollar or euro, or even an identical currency like Bitcoin or Ethereum, but are a one-of-a-kind, blockchain-based virtual asset.

NFTs are programmable and can retain game information. This provides the casino with even further transparency over the fairness of its games, potentially more so than an external auditor like eCOGRA can provide with its certificate of compliance and list of Return to Player (RTP) percentages. While RTPs are theoretical, NFTs can provide authentic evidence of the way a game plays out.

Another benefit of NFTs is that they are interoperable, meaning players can use them across multiple different games and platforms. This not only improves the overall user experience through seamless multichannel integration, but it also increases the investment potential of an NFT.

iGP is set to launch its own proprietary crypto casino software later this year. The customisable turnkey crypto casino solution is embedded with a multi-currency crypto wallet, allowing users to choose between crypto and fiat currencies.

“Our crypto casino solution will allow operators to start their own crypto casino in just a few weeks. Our solution is built with a focus on security and stability, ensuring that players have a safe and enjoyable gaming experience”, says Glazaite.

“Transactions are secure and instant, because the solution integrates with a crypto payments processing platform and wallet management system that comes with built-in analytics and risk management tools. Much of the work has already been done for the operator, so integration will be a smooth and simple process.