Cryptocurrency casinos experienced a 300% year-over-year increase in gambling traffic in 2020, according to gaming software provider SoftSwiss. The most popular cryptocurrency, with a 90% share, is still undoubtedly Bitcoin.
Even though crypto-based casinos have been around almost since Bitcoin’s inception, not many people were willing to gamble with the cryptocurrency. This type of casino was mainly reserved for a small number of tech-savvy users.
But things are rapidly changing. With Bitcoin getting its mention in every media outlet since it started trading at a record-high price at the beginning of 2021, cryptocurrencies are finally gaining the popularity they need. Casino owners have taken advantage of the situation, enabling their customers to use cryptocurrencies to make both deposits and withdrawals.
Cryptocurrencies are a logical solution for casinos for two main reasons: instant and perfectly secure transactions and an additional level of anonymity. The latter is much needed in countries where legislation regulating cryptocurrencies and gambling is still underdeveloped and vague. Crypto casinos provide the much-needed gray area for gambling and enable people from countries whose fiat currencies are not commonly accepted at online casinos to play on these platforms.
Those who regularly gamble at online casinos praise cryptocurrencies because they guarantee fair play and transparency so that players always know what their chances of winning really are. Plus, the transaction fees are typically significantly lower at crypto casinos than traditional ones.
But is this legal? Most casinos that accept Bitcoin and other cryptocurrencies hold a Curacao eGaming license. In contrast, countries such as the United Kingdom, Gibraltar, Sweden, and Malta, where most online casinos are registered, are still very suspicious of casinos accepting cryptocurrencies. This is mainly because the UK Gambling Commission and other authorities require operators to implement know-your-customer procedures to verify each customer’s identity. Cryptocurrencies provide their holders with a high level of anonymity, which contrasts heavily with the regulatory bodies’ requirements.
So, what does the future hold for crypto casinos? With tech giants such as Tesla accepting Bitcoin as a means of payment and advocating its use, this cryptocurrency is bound to grow even further when it comes to popularity and adoption. As Bitcoin becomes less of a novelty and blockchain technology gains more supporters, other cryptocurrencies will likely follow suit, making crypto the safest and the most convenient way to join the world of online gambling.