The market of online casinos and sports betting (crypto-gambling) platforms is very popular among users. In order to increase confidence in casinos, they began to use blockchain technology. Crypto-gambling is gradually replacing classic online casinos.
The Cryptocurrency Gambling Market
The principle of operation of cryptocurrency gambling platforms functions similarly to the classic online platforms. But there are some differences:
- betting is done in virtual assets;
- transactions can be verified using blockchain;
- smart contracts are responsible for paying out winnings.
There are 2 types of crypto-gambling platforms on the market. The first operates exclusively with cryptocurrencies. The second accepts bets in cryptocurrency and fiat.
Almost all cryptocurrency gambling platforms are based on blockchains such as TRON, EOS, and Ethereum. Among the cryptocurrencies used, the most popular are assets such as Bitcoin, ETH, LTC, and DOGE.
The Statistics of Cryptocurrency Usage in Famous Blockchain Casinos
There are two classes of developers in this market:
- There are game creators. They are directly involved in the development of blockchain-based gambling games such as Aviator Spribe. Game creators receive at least 5% of each bet for their work.
- There are blockchain platform creators. Their task is to ensure the operation of the gambling platforms. They also receive a commission percentage of 5%.
How is the Market Regulated?
Most of these platforms operate in a legal gray area. However, there are crypto-gambling platforms that operate completely in the legal field. They are licensed in 4 jurisdictions:
- The island of Curacao (Caribbean Sea). The island has been offering gambling licenses since 1993. VAT is not charged. The tax on profits is 2%.
- Kahnawake Reservation (Canada). The regulator of the reservation has a strict check on customers.
- Malta. To obtain a local license will have to pay a significant amount.
- Costa Rica. Does not issue licenses for blockchain gambling. However, it is possible to get a license to start a company. After that, the platform can start operating.
In addition to the above-mentioned jurisdictions, licenses can be issued in the Isle of Man, Barbuda, and Antigua.
How Blockchain has Made Crypto-gambling Platforms Popular
Cryptocurrency casinos operate using smart contracts. They automatically transfer winnings to customers.
Legitimate casinos use only certified software, which has undergone additional verification by auditors.
The casino cannot block the payment of rewards, since they are conducted by smart contracts. Transfers are made very quickly.
Thus, due to the use of blockchain technology, legal crypto casinos are completely transparent and secure.
How to Choose a Crypto-gambling Platform
If the user-gamer wants to minimize the risk, then he should pay attention to a number of parameters of crypto-gambling platforms:
- The address of the smart contract must be in the public domain. If there is no smart contract address, the casino is most likely a fraudulent structure.
- The platform must have a license from the above-mentioned jurisdiction.
- The genuine site has an SSL certificate attached, a secure connection is ensured using HTTPS protocol.
- There should be a user agreement, which should specify all the terms and conditions of the customer agreement. It should also specify the certified software and the developers of the game.
- If the above parameters are not presented, there is a high risk to be a victim of fraudsters who created the game specifically to cheat customers.
Therefore, it is recommended to study the sites in the most thorough way before you start playing.
Prospects for Development
There are no exact statistics on the market yet. There is only indirect information indicating that in 2020 the crypto-gambling market will be $6 billion and in 2021 already $10 billion. The most registered platforms are in the U.S., India, Germany, Canada, and Asia. The number of those wishing to receive rewards through such platforms is growing, as is the number of inquiries on this topic.
At the moment, there are more than 200 platforms in the cryptocurrency gambling market and their number continues to grow. By 2025, the market capitalization could reach nearly $98 billion. As interest in cryptocurrencies grows, so will the crypto-gambling sector, especially the blockchain-based mobile gambling app sector. Most of the platforms are likely to get the appropriate licenses to operate, and only a small number of sites will remain in the gray area.
