Why use of bitcoins is increasing in online gambling?
Low-cost and facilitated speedy payments, is providing for increased usage of bitcoins in online gambling. The low operating cost, 24/7 availability gives bitcoins a distinct advantage. Bitcoins allow players to make rapid deposits, and withdraw money, in a completely anonymous way. Crypto-currency has also contributed to the more fair gambling industry, in terms of time to market, setup costs and operation expenses. The mechanism behind the Bitcoin and the Blockchain makes every transaction transparent which enables the players to better control their funds. All Bitcoin transactions are non-reversible, so there are no chargebacks, which eliminates untimely withdrawals in online gaming.
The absence of fees, for every wager, enables operators to offer better odds, and higher payouts on their online brands, and manage their payouts differently.
The use of digital payment services facilitates speedy use, as it eliminates lengthy banking processes, of traditional payment systems, and makes transactions quick, and simple. Bitcoins are popular in online communities, as the cryptocurrency’s system is built on a peer-to-peer network, that is not controlled and monitored by any central authorities which means that users can conduct their private business without anyone knowing about it.
Anonymity in transaction about the sender and the receiver, through use of peer-to-peer network, in online gambling, is another reason for increased acceptance of bitcoins, in online gambling. Further, Bitcoins are placed in a digital wallet, that can be managed by dedicated websites, or on a private computer. The larger limits on bitcoin addresses for receiving payments through virtual currencies has been another reason on promoting use of bitcoins in online gambling. The virtual wallets, QR-codes, and NFC, funds can be transferred with the minimal effort and in real time with cryptocurrency.
The use of bitcoins does not require gambling license for use on online gambling sites. Further, in Bitcoin only gambling brands, the rules of “Know Your Customer” or “KYC” and “Anti Money Laundering” or “AML” do not apply and as such All transactions are anonymous.
The purchase and transactions in Bitcoins is made convenient through use of special software Bitcoin Miner or through currency exchanges such as Mt.Gox that provide exchange of global currencies for Bitcoins.
Cryptocurrency’s or bitcoin’s success in online gambling depends upon state regulation, which is far stricter in force, in US markets, regulated by Unlawful Internet Gaming Enforcement Act UIGEA 2006, in comparision to other locations. Russia recently has disallowed the use of bitcoins on its online gaming sites. Transparencies in online regulation have provided for different US states to permit online gambling such as Delaware, New Jersey and Nevada.
Lack of awareness of about bitcoins or technical points on ensuring successful payments, through use of crypto-currency, such as bitcoins, is the biggest hurdle in adoption of bitcoins, viz-a-viz to electronic payments, made via online banking transactions. The recent upsurge in bitcoins usage, by online gambling sites, and online casinos, has reduced barriers on this count. Comprehensively, world-over, the acceptance of bitcoins, is still in rudimentary phases, in business circles, in lesser advanced or progressive nations. Further, present laws forbid use of US banking channels, to pay for use of crypto-currency or bitcoins, in online gambling.
Use of newer programming codes, other-than erstwhile JAVA and HTML based programming components, have added security-layer to online gambling apps and websites. This feature facilitates better usage and accounting of online cryptocurrency in online gambling.
Online gambling and cryptocurrency, made secure with use of modern high technology re-enforces trust, where, all participants have view of each other presence online. The electronic transactions are safeguarded, with use of encryption and security features, such as automated cash-outs, that help sites scale, without permitting criminals, to take advantage of poorly configured scripts.
The use of specific technology advances cryptography–based decentralized autonomous networking principles, ‘dice’ gaming model, are some of the automation models used by different gaming sites, to improve interest and reward in gaming sites.
Different online games have been able to generate scenarios, where online transactions, are incurred, through use of bitcoins, as a part of gaming script, to facilitate transaction in crypto-currency. A game Just-dice introduced the concept of allowing players to be part of the bank, which was used as a promotional measure to promote use of bitcoins. Similarly another forum Cloudbet formed in 2013, is a sports book and casino environment where players can deposit instantly, bet, and withdraw again as soon as bets are graded.
This has created a more positive environment for crypto currency gambling sites.
Thus, a series of changes in security features and structure of websites, law regulations and improved awareness about use of bitcoins crypto-currency, have improved performance of bitcoins, in online gambling arena. The present mixed bags of regulation, have forced some of the online gambling sites, to withdraw operations from US markets.
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