Blockchain in online casino segment: How decentralized gambling business actually works
Decentralization provides new solutions for the gambling industry, which is why blockchain casino is a popular trend today. Let’s analyze what distinguishes blockchain-based gambling from traditional lotteries and what advantages gambling gets thanks to modern technologies.
How does blockchain-based online casino work?
A blockchain casino functions based on smart contracts, meaning that the winnings are calculated and sent to the cryptocurrency wallet of a player automatically. All transactions are carried out without intermediaries, which increases their speed.
As blockchain allows storing data on numerous computers and data cannot be changed, it makes the system fair and reduces risks of fraud. Moreover, all information is stored publicly and players can always get access and check it.
Advantages of decentralized casinos
Use of the technology in the gambling business gives benefits to both players and casino operators.
- Anonymity. Punters can play blockchain-based casino games anonymously. Decentralized casinos do not demand to provide documents and users even do not need to create an account in order to participate in some blockchain lotteries.
- Low fees and quick transactions. The absence of third parties in online blockchain casinos allows making quick payments. Moreover, compared to traditional online casinos, blockchain-based gambling offers lower fees.
- Transparency of the system. Thanks to the public access to terms and conditions and sums of winnings, online casinos increase the level of player trust in operators.
Popularity of online casinos
Today a great number of decentralized gambling companies and traditional online casinos emerge.
Online casinos were legalized in Belarus by the decree of the President Alexander Lukashenko on August 7, 2018.
Tax rules and license acquisition terms were defined for online gambling. For instance, to launch an online gambling business, you must own a deposit to be able to make payouts, and you must have identification procedures for players. Besides, online casinos will be connected to a single point-of-sale system to monitor the turnover of each casino.
Land-based casinos will have to provide video surveillance for the whole perimeter to track visitors and cash disbursements.
Introductions touched upon players as well, as the Belarusan government raised the age limit for participation in gambling from 18 to 21 years old.
It is not clear how soon Belarusan casinos will start using blockchain, but the latest events show that the gambling industry will continue integrating high-tech solutions.