Understanding the Growing Appeal of Crypto Casinos
Posted by Harry Kane on Friday, August 26, 2022
While it’s fair to say that the number of cryptocurrency users in the UK continues to rise slowly, this growth is likely to accelerate as the number of potential blockchain applications increases. At the end of 2021, it was thought that 6.2% of UK adults (or around 4.2 million people) held at least some form of crypto.
This percentage was up markedly year-on-year, from a starting point of 4.95% in 2020. Make no mistake; this will have been influenced by the growth of crypto and its underlying blockchain technology in a number of different markets, including the UK’s iGaming and remote betting space.
There’s no doubt that so-called “crypto” casinos are becoming increasingly commonplace and popular online, despite the infamous cryptocurrency crash that extended throughout 2022 and the inherently volatile nature of even relatively mature assets such as Bitcoin (BTC) and Ethereum (ETH).
But what’s behind the rising popularity of these sites, and are there risks to betting at an online crypto casino and sportsbooks? We’ll explore this in the post below, so that you can hopefully make an informed decision about whether or not this type of platform is right for you!
Exploring the Draw of Crypto Casinos in the UK
Let’s start by appraising the ample cons of betting at a crypto casino online, which serve as key motivations for players to switch from more traditional online platforms. We’ve listed three of the most telling motivations, especially in the context of the current marketplace and increasingly stringent regulatory framework.
#1. Access Your Choice of Crypto Casino from Anywhere
Crypto casinos are renowned for offering genuine anonymity to players, as it’s possible to register for an account and process both deposits and withdrawals simply by using your crypto wallet ID. Of course, blockchains like BTC aren’t 100% anonymous, as transactions can still be traced on the distributed ledger, but you won’t need to provide your name or email address when registering.
Similarly, fully fledged crypto casinos are built on completely decentralised networks, which means that there’s no third-party point of regulatory control or data collation. As a result, it’s possible to access the crypto casino of your choice regardless of your physical location, especially if you also use a reputable VPN client.
This removal of geographical restrictions opens up an entire world of casinos, which may operate in far-flung and disparate parts of the world. As a result, they may also be licensed by completely different regulatory bodies, which may vary in terms of the terms and conditions that they impose on operators.
Of course, this creates potential regulatory challenges, and we’ll explore these in a little more detail later in the piece. However, it’s undoubtedly tempting from a player’s perspective, especially when you consider the potential impact of the gambling review in the UK and how this may restrict both operators and players going forward.
#2. Enjoy Superior Bonuses and Less Stringent Verification Processes
The focus on regulatory strictness is a key consideration, especially if some of the measures recommended by the gambling review are upheld following the ongoing consultation period. For example, let’s say that the £2 maximum slot betting cap is rolled out for young and supposedly high-risk players, with this enforced at all UK licensed casinos.
This creates a significantly restricted gameplay experience for a potentially large number of players, and it’s important to note that such limitations may not be in place at crypto casinos. Remember, these platforms are completely decentralised and difficult to regulate within specific jurisdictions, so they’re likely to be unconstrained by slot betting limits or thresholds.
At the same time, crypto gamblers won’t be subject to affordability checks, as they’re not required to provide proof of their age or identity when registering for an account. Because of this, we could well see younger players and high rollers gradually transition to crypto casinos, as they look to access games and verticals that offer increased stakes and inflated returns.
#3. Superior Security and Encryption
Even on a fundamental level, the use of blockchain technology to underpin crypto gambling is associated with enhanced security and far levels greater transparency. These reassurances are coveted by players in the digital age, especially with rogue operators comprising the safety of online players and using unfair and ‘rigged’ games to effectively steal funds.
To begin with, crypto transactions are secured by unique public and private keys, which are cryptographic hashes that are virtually impossible to hack. Private keys are also unique to users and be used to decrypt transactions when receiving funds, making withdrawals more secure than ever before.
In terms of fairness and transparency, rogue online casinos may not have their games independently tested or choose to publish inaccurate return-to-player (RTP) rates. They may also not deploy random number generator (RNG) software to generate random outcomes in games, whereas the inherently transparent nature of crypto creates a much fairer gameplay experience and naturally lowers the prevailing house edge.
Regardless, players can typically enjoy a more secure and transparent experience when gambling at a crypto casino, and this is becoming an increasingly pressing consideration for players in an age where cybertheft and fraud remain so prominent.
Are There Risks Associated with Crypto Gambling?
While these benefits explain the growing lure of crypto gambling, it should be noted that this practice isn’t completely risk free. After all, blockchains can also be targeted by rogue operators and casinos, although such entities would need technical expertise to launch this type of elaborate scam.
The lack of defined or universal regulation in specific jurisdictions is also a cause for concern, as this may make it difficult to escalate complaints or chase lost money (as such queries would usually be dealt with the regulator or an ombudsman). This remains a significant risk when betting at any crypto casino, so this isn’t to be recommended if you’re new to the currency or underlying technology.
Experienced crypto investors are also better equipped to track and deal with cryptocurrency price fluctuations, which can have a huge impact on how much capital you have to wager. So, while the appeal of crypto casinos is obvious in the current regulatory climate, you should approach the market with caution and build your knowledge before making a firm commitment.