Bitcoin is gaining greater acceptance. Thousands of businesses now accept the world’s largest cryptocurrency or one of the several thousand available altcoins, and this number is set to grow in 2025 with a crypto-friendly US government in place, and continued regulatory changes across the globe.
One industry that has seen explosive adoption rates for Bitcoin is the iGaming industry, where it is favored for its privacy and anonymity, as well as its fast and inexpensive, borderless transactions. Blockchain, which is the technology that underpins Bitcoin and has its own separate use cases, is also fuelling innovation within the technology-heavy industry.
Anonymous Data
Anonymity is important to online casino players. Nobody wants others to know how much they spend on iGaming. Crypto-friendly anonymous casinos accept deposits and initiate withdrawals without the need for users to submit their bank or card details. According to cryptocurrency writer Carlos de Lanuza, this anonymity also extends to account registration at some casinos. Users do not need to register personal details when setting up their accounts.
As well as maintaining the anonymity of everyday players, this has also proven beneficial to players who live in areas with restrictive online gambling laws. In the US, for example, only 7 states currently regulate and license casinos within their own borders. In at least two states, online gambling is prohibited, but players have found anonymous casinos offer the opportunity to play.
Similarly, players in countries like Singapore, the United Arab Emirates, and Japan have been able to play at anonymous online casinos. As a result of Bitcoin’s anonymity, we are even seeing traditional casinos offering no-KYC registrations.
Secure Financial Details
This anonymity is also one way in which cryptocurrency can help enhance player security. Security is vital to casino players. Not only can cybercriminals potentially steal money from players’ accounts, but hackers can get away with player’s bank or credit card details.
Cryptocurrency deposits and withdrawals are essentially made as one-off transfers. The casino doesn’t store any financial data, other than details of the transaction. This means, that even if an online casino is hacked, the thieves might get away with the cryptocurrency held in player accounts, but they won’t be able to use financial details to procure any more money or data.
Cryptocurrency transfers themselves are also secure as Bitcoin and other currencies use highly advanced cryptographic techniques. Online casinos invest large sums of money in ensuring a secure environment for players, and Bitcoin acceptance can help them towards this end.
Access For The Underbanked
There are more than 1.5 billion unbanked and underbanked people in the world. Unbanked citizens are those with no access to basic banking features, whereas underbanked people have limited banking features.
Many of these people are forced to use cash for transactions. Bitcoin offers a viable alternative that can offer some of the features that unbanked and underbanked citizens miss out on. Bitcoin can be bought in some stores, and even from Bitcoin ATMs that have cropped up in countries around the world. These same ATMs can also be used to initiate payment transfers to other wallets, including casino wallets, or payments can be made using online and app-based wallets.
Traditionally, it is very difficult for online casinos to offer their services to players without banking services, although some do enable the use of prepaid cards, which can be bought from stores and other businesses. Bitcoin offers a more convenient alternative to having to keep going to the store to buy gift cards.
Faster Transactions
Arguably, one of the greatest benefits of the Bitcoin revolution is the speed at which financial transactions can be carried out. This benefits both players and casinos. Bank transfers, especially to overseas accounts, can take several days to complete. Credit card transfers can take a similar time to complete. This means there is a delay between players sending money and casinos receiving them, and vice versa.
Bitcoin, which is one of the slower cryptocurrencies available, takes up to 15 minutes for payments to complete, and it is typically much quicker than this. This is beneficial when making deposits because it means the casino gets its money sooner, and players can start playing casino games with a very short delay. It is especially beneficial when withdrawing money, though.
Gamblers only have to wait a matter of minutes before their winnings are in their crypto wallets, rather than waiting days. This fast withdrawal improves cash flow and budget management while reducing the anxiety that can come from delayed payments. As well as being more convenient for players and casinos, faster payments enhance trust between casinos and their gamers.
Borderless Transactions
Bitcoin can be transferred from one wallet to another, regardless of where those wallets are located. Sending the currency to the other side of the world takes the same amount of time and costs the same as sending it to somebody in the same room.
This has proven especially useful for offshore casinos, which are those registered and licensed in countries other than where players reside. Gambling authorities like Curacao and Panama will license Bitcoin casinos, which can then effectively offer their services to players from any country in the world.
As gambling regulations and cryptocurrency regulations continue to open up in the coming year, we may well see more gaming commissions open up licensing to Bitcoin casinos.
Transparent Casino Records
Bitcoin is developed on blockchain. Blockchain is a digital ledger. Records are created on the ledger and cannot be deleted or altered. While blockchain can be used for a variety of purposes, one of its most important uses is in the creation and submission of Bitcoin transaction records.
Whenever a transaction is made, this is recorded on Bitcoin’s ledger. The information stored includes the sender’s and recipient’s wallet addresses, as well as the value of the transaction and the time it was completed.
No personal details are recorded, which means payments remain pseudonymous, but with the right software or using the right service, it is possible to view every transaction on the blockchain and search for records involving specific wallet addresses. This enables players to view casino deposits and withdrawals, improving transparency between casinos and their players. This is another way that Bitcoin has helped enhance trust in the industry. The same transparency is also beneficial in professional poker tournaments, as well as in eSports and other online gaming.
Blockchain Innovations: Beyond Bitcoin
The use of blockchain can also bring other innovations. One way this has already been seen is in the creation of casino coins. Casinos can create their own cryptocurrencies, and will typically offer improved bonuses to players who use that coin for deposits and withdrawals.
Blockchain can be used to establish smart contracts. These are automated contracts that can have multiple layers and requirements. When certain requirements are met, the contract automatically initiates the next step in the contract. As well as being used for basic transaction purposes, these automated contracts can be used to automate transactions for loyalty programs, VIP programs, and casino bonuses, which will further streamline the overall online gaming experience. There will be no need for players to wait to receive bonuses.
Blockchain’s immutability and transparency can also be used to facilitate improved conflict resolution, ensuring a fairer gaming environment and helping prevent iGaming fraud.
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