What are Bitcoin Casinos?
A Bitcoin casino is a type of casino that allows players to use cryptocurrencies as a payment method. Usually, these casino types aim to attract crypto enthusiasts and players who want anonymity when gambling.
In other words, at Bitcoin casinos, gamblers can make deposits and withdrawals using a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. Interestingly, unlike in traditional casinos, where fiat currencies are used for payments, crypto casinos offer players total control of their activities and winnings. This is because Bitcoin and cryptos are decentralized, so the government has no control over Bitcoin gamblers’ money and what they do with it.
However, other industry rules and guidelines in conventional casinos apply to Bitcoin casinos. The only major difference is that in Bitcoin casinos, you have the option of playing your favorite casino games with Bitcoin or other cryptocurrencies and also withdrawing your winnings in these denominated cryptocurrencies.
How Do Crypto Casinos Work?
Since cryptocurrencies and blockchain technology are relatively new concepts, Bitcoin casinos have recently started evolving. Because of this, first-time players and non-technical gamblers may find it difficult to understand how crypto casinos function. At the same time, placing bets with Bitcoin can be challenging for such players.
So, how exactly do crypto casinos operate?
Bitcoin casinos are very similar to the everyday casinos you play at. They are online casinos that let you wager on games for winnings. The only significant difference is the crypto payment method infused in crypto online casinos. At these kinds of casinos, you don’t need your traditional currencies like USD, EUR, and GBP. You only need a crypto wallet that you can use to send and receive Bitcoin or other supported cryptocurrencies.
Usually, crypto casinos have an in-house cryptocurrency wallet that players can use to transfer their Bitcoin. It is this wallet you fund to wager on games at the casino. Similarly, you can send your winnings to an external crypto wallet when your bets are successful.
More often than not, Bitcoin casinos have no deposit limits. However, it is crucial to note that many online casinos have a withdrawal limit to prevent their customers from cashing out all their winnings at once. So, before playing at an online casino accepting crypto, we recommend you read and understand the terms and conditions around crypto payments. By doing so, you’ll have a better understanding of how things really work. Failure to do so may result in you facing some uninteresting surprises that could instead be avoided.
Advantages of Bitcoin Casinos For Players
Bitcoin casinos offer gamblers a lot of perks that are unavailable in traditional casinos. We highlight some of the advantages of Bitcoin casinos for gamblers below.
Transparency
One of the major criticisms of traditional casinos is that winnings and other activities are not always fair and transparent. Many of these casinos deploy various tactics and tricks to attract users. For example, there are conventional casinos that promise high winnings and ridiculous bonuses to lure players into playing at their casinos. However, when gamblers start playing at these online casinos, they’ll later find out that the promises aren’t always true, and instead of the winnings promised, they end up losing money.
In cases like this, what really happens is that these traditional casinos hide information from their players and hold on to a significant percentage of their winnings. Because of this, unsuspecting gamblers end up recording massive losses while the casino profit from them.
However, with Bitcoin casinos, players do not need to worry about the heinous tricks present in traditional casinos. Bitcoin transactions are recorded on the blockchain and available to everyone, making it hard for casinos and bookies to hide information or indirectly steal from gamblers. As a result, players are protected from casino scams and other fraudulent activities present in traditional casinos, and they are confident of fair and legitimate winnings.
Security
Another downside to traditional casinos that Bitcoin casinos aim to solve is security. Most online casinos require players to undergo a registration process and store their personal information on their websites. Usually, this information includes bank information, credit and debit card details, and other sensitive information.
Having sensitive credentials like this on online casino websites and mobile apps can be risky because of cyberattacks and hacks that can result in players’ account information being stolen and their money being stolen. Similarly, hackers can collect and sell players’ information to malicious actors who can use these to hurt players.
For example, in 2022, online casinos DraftKings and BetMGM were hacked, resulting in the perpetrators stealing the data of 1.57 million BetMGM customers and 68,000 DraftKings customers.
Interestingly, Bitcoin casinos have come around to solve this problem. With crypto casinos, users don’t need to store their personal information, and all transactions are anonymous. All players need is a wallet address for deposits and withdrawals. Similarly, Bitcoin casinos eliminate the rigorous process of registering and filling out various details when registering to gamble at casinos.
Cheaper Fees
Traditional online casinos are also plagued by various fees, including deposit and withdrawal fees, as well as bank charges, that players must pay when funding their accounts or cashing out their winnings. In addition, gamblers are usually required to pay taxes and duties on their gambling profits, making traditional casinos a more expensive option.
In contrast, Bitcoin casinos are more affordable because most of these charges are eliminated. As a result, transaction fees using Bitcoin at casinos are relatively low or non-existent. This is because there are no third-party payment providers like banks and financial institutions levying charges on transactions. So, the only fees gamblers have to pay for crypto deposits and withdrawals are blockchain network fees – which vary depending on the coin selected.
Ease of Use
Another benefit Bitcoin casinos offer over their traditional counterparts is convenience. In traditional casinos, transactions are constantly hampered by bank network issues and other challenges that delay payments. In drastic situations, payments may even be unsuccessful when banks and other financial institutions have downtime.
In comparison, crypto transactions are devoid of bank network issues, and payments are almost instant. This feature makes cryptocurrency casinos more convenient for gamblers who sometimes have little time between deposits and the time of events they want to wager on.
At the same time, gamblers in countries where gambling is restricted can easily access casinos and play their favorite games using Bitcoin because cryptocurrencies are borderless. The players also have total control over their money and can withdraw their winnings effortlessly from anywhere in the world.
Bonuses and Promotions
Though Bitcoin casinos are relatively new, they are popular for mouthwatering bonuses and promotions unavailable at traditional casinos. Though traditional casinos offer various bonuses, including welcome bonuses, cashback, and more, the bonuses are usually around double and limited to a few hundred dollars.
In contrast, Bitcoin casino bonuses are more lucrative because Bitcoin is more valuable. For example, there are online Bitcoin casinos that offer bonuses from 1 BTC to 5 BTC. At the time of writing, 1 BTC is worth about $18,000. That means players can enjoy that amount or more in bonuses alone when they play at Bitcoin casinos.
Gaming Variety With High RTPs
Both traditional and Bitcoin casinos cater to players looking for an extensive range of gaming options. However, to attract more players, Bitcoin casinos have a more extensive gaming library containing high-quality games like slots, roulettes, baccarat, blackjacks, and live dealer games. This way, players can enjoy all their favorite games in one place.
Interestingly, Bitcoin casinos don’t only stand out because of their diverse gaming options. Compared to traditional casinos, the games at crypto casinos come with high payouts. For instance, there are Bitcoin casinos offering players up to 99% return to player (RTP). With this, gamblers can make more money while playing almost the same games as in traditional casinos.
Advantages of Bitcoin Casinos for Businesses
Like players, casino businesses also benefit from accepting Bitcoin payments from their customers. We highlight some of the advantages of crypto casinos to businesses below.
High Security
Cryptocurrencies are more secure than traditional currencies because of the blockchain technology they are built on. Because of this, there are low risks associated with accepting crypto payments, as accounts are protected from breaches or fraud.
For instance, the common chargebacks used by fraudsters to exploit casinos through the reversal of payments are entirely eliminated with the use of cryptocurrencies.
At the same time, customers’ privacy is protected with crypto transactions, and this will in turn, make the casino reputable.
Wider Reach
Since Bitcoin and crypto transactions are convenient and seamless, online casinos that adopt Bitcoin deposits and withdrawals can attract people who have experience using Bitcoin. At the same time, the casino is open to a broader market that is untapped because cryptocurrency payments are relatively new in the gambling industry.
In addition, online casinos can attract more players with crypto bonuses and rewards since they are more valuable than real money bonuses. For example, if prospective customers know they stand a chance to get free BTC rewards for registering and playing at an online casino, they will most likely consider using the casino in a heartbeat.
Reduced Transaction Costs
For every fiat transaction, banks, payment gateways, and other middlemen have a percentage they take as charges. Usually, these transaction fees are high because they cut across credit and card payments, direct bank transfers, e-wallet payments, and other forms of traditional payments available at conventional casinos.
But with cryptocurrency payments, online casinos can avoid these charges because they can opt for a direct payment from customers without any third-party agent. With these intermediaries eliminated, businesses can make more profit.
Borderless Transactions
As stated earlier, some countries have restrictions around gambling, so their players cannot easily access online casinos. For example, residents of Brunei and Singapore are not allowed to gamble. With this limitation, players in these countries are discouraged from betting at online casinos.
However, with Bitcoin, online casinos can offer borderless transactions to their customers in these regions. Since crypto transactions are decentralized, residents of these countries can send and receive money anywhere using Bitcoin.
Similarly, businesses can avoid the high cost of processing payments in other regions outside their domiciliary.
Hedge Against Inflation
One of the downsides to saving using traditional currencies is the risk of inflation. Cash depreciates over time, regardless of whether it is stored in the bank. So keeping liquid cash can result in businesses losing money.
But with cryptocurrencies like Bitcoin, organizations can protect their money from losing value to harsh macroeconomic factors like devaluation and inflation. This way, they have leverage and can boost profitability.
Final Thoughts
Bitcoin casinos are revolutionizing the gambling industry, and they are here to stay. Though crypto casinos are still relatively new, there are quite a few out there for gamblers to play slots, blackjack, roulettes, and other games they love. These casinos offer more profitability to both individuals and businesses, and the convenience they offer is a great benefit.
However, before integrating crypto payments into your operating system as a business or gambling at Bitcoin casinos as a player, it’s essential to research the benefits and downsides of Bitcoin and crypto casinos. This will help you understand the regulations surrounding crypto payments for individuals and organizations to determine if it is the right decision for you.
Reviewed and Fact Checked by Eugene Abungana , Investment Analyst, Financial Analyst, and Institutional Trader