Are Crypto Casinos Better Than Standard Platforms?

Posted by Harry Kane on Tuesday, February 15, 2022

We’ve all heard of the metaverse by now, with this term describing a network of three-dimensional, virtual worlds that are focused on social connection. Having moved out of the realms of science fiction to impact on the consumer mainstream, you can now find iterations of the metaverse on sites such as Meta and various cryptocurrencies.

Most blockchain-based metaverse locations (such as Decentraland) make provisions for virtual, 3D casinos, creating an immersive and completely decentralised betting experience that replicated offline wagering. This is an evolution of existing casinos, where players are free to bet and make deposits using tokens such as Bitcoin (BTC) and Ethereum (ETH). But are these platforms better for players than traditional casinos?

The Benefits of Crypto Casinos

Before we discuss the potential drawbacks of crypto casinos, it’s important to consider the advantages offered by such platforms. Here are some of the most telling:

#1. Enjoy a More Secure Betting Experience

Security is a key watchword in the UK’s iGaming market, particularly as the sector has become increasingly profitable and a growing number of rogue operators have entered the space. This is one of the main advantages of crypto gambling, which introduces additional layers of inherent security that are synonymous with blockchain.

More specifically, all blockchain transactions are secured by cryptography, with each block containing a unique private key that can encrypt and decrypt all sensitive data. If there’s any change in transaction-related data, the block’s unique key becomes invalid and is subsequently discarded from the chain.

This creates a much safer and more secure option for casino players, both when depositing and withdrawing funds from your account. Like standard online casinos, Bitcoin and Ethereum-backed platforms are also protected by 128-bit SSL encryption, ensuring that data and financial transactions can be processed securely at all times.

So, while it would be wrong to say that standard online casinos are fundamentally unsafe, the use of cryptography and blockchain’s inherent anonymity ensures that crypto platforms definitely stand apart. This is undoubtedly a key consideration, and one that’s becoming increasingly important in a crowded and mature UK marketplace.

#2. Reduced Transaction Fees

Recently, online casino platforms have strived to remove all costs and fees from their transactions, although some operators continue to charge players when crediting their account or removing cash to their bank. For example, an operator may apply a nominal processing fee when completing a deposit or deploy a similar change to complete withdrawals and remove money from account to another.

Either way, such costs will eat into your bankroll and future profits, while they’ll also accumulate quickly in instances where you make a high volume of daily or weekly wagers. If you play at a crypto casino, however, the decentralised nature of this platform completely eliminates any so-called “middle-man” or third-party point of control.

So, there’s nobody to apply or profit from transactions fees, enabling you to access and move your capital freely and without having your margins squeezed. Additionally, the free and decentralised nature of blockchain means that you don’t have to use cards or e-wallets to credit your account. This negates the transaction fees often charged by independent payment processors, which also eat into your bankroll before you even log into your account!

#3. Improved Transparency

The UKGC has had issues with the market’s transparency throughout its expansion, with some casinos having been found to have concealed information from players pertaining to bonuses and withdrawals. Until recently, there was also confusion about the deployment of player deposits as part of operator welcome bonuses.

More specifically, operators were including their customers’ deposits within the wider wagering requirements, placing unfair withdrawal restrictions and creating extensive playthrough amounts that could prove prohibitive over time. Such issues in transparency are caused by a lack of clarity and disclosure, while the small print associated with welcome offers may also mask terms and conditions that are prohibitive or potentially unfair.

While the work of the UKGC since 2018 has helped to tackle some of these issues, it’s fair to say that no such issues occur when wagering at a cryptocurrency casino. This is thanks largely to the inherently transparent nature of Bitcoin and Ethereum casinos, which as we’ve already touched on aren’t centrally controlled and must present their T&Cs as clearly-defined blocks.

These transparent terms and conditions are also presented as completely immutable records, so players can freely enter into an agreeable contract with casino platforms and make informed decisions about how they deploy their native tokens.

The Last Word – What About the Disadvantages of Cryptocurrency Casinos?

There’s no doubt that these advantages outweigh the potential drawbacks of playing at a crypto casino, but it’s important to be aware of the volatile nature of tokens such as Bitcoin before wagering through this type of platform. If we look at the price of BTC over the course of the last 12 months, for example, we see that this peaked at £49,838.79 on November 8th, 2021.

However, it has also plunged as low as £21.849.65 (on July 20th of this year), with this representing a decline of around 60% in an incredible short period of time. Of course, the long-term trend for BTC and ETH has seen prices rise incrementally over a period of years. However, this doesn’t completely compensate for the type of short and medium-term fluctuation referenced above, particularly when you’re using tokens to fund real-time deposits and wagers.

Ultimately, there’s the potential for the value of your bankroll to depreciate markedly in a short space of time at a crypto casino, impacting on your experience and potentially encouraging you to spend more and wager outside of your means. Of course, the result is also true, and the value of your real-time bankroll can appreciate sharply at crypto casinos and elevate the experience considerably.