Will Crypto Ever Be the Most Popular Gambling Payment Method?

We have all heard the phrase “cash is king” one too many times, but when it comes to the world of online gaming, another king, cryptocurrency, is emerging. The use of cryptocurrency in the online gambling space has disrupted the industry in a way that no other payment option has. 

Crypto came into the picture and broke down the barriers that used to make gambling tedious. But are the added advantages that crypto payments bring to the market enough to make them the king of gambling payments? 

Factors that Can Influence the Increased Adoption of Crypto Payments 

Crypto as a payment option appeals to gamers not just because more online casinos are beginning to offer that option. Below are some of the things that crypto brings to the table that make it a viable option for casinos and gamers alike:

Anonymity and Privacy

One of cryptocurrency’s biggest selling points has always been the level of anonymity and privacy protection it offers. The best crypto casinos offer more than one crypto payment option, even outside the popular ones like Bitcoin and Ethereum. Users also get attractive sign-up bonuses without having to worry about ID requirements and KYC verifications, even after hitting it big. 

Unlike the traditional payment system, which relies on a central authority for validation, cryptocurrency relies on the blockchain, which is consensus-driven. This means that no single entity has control over the records of transactions. Crypto’s anonymity and privacy help to protect gamers from the potential stigma associated with gambling in some cultures and keep their financial dealings as private as possible. 

To initiate and conclude a crypto transaction, a user does not have to provide personal information. Instead, they use pseudonyms, which protects them from data breaches even though the records of their transactions are publicly recorded on the blockchain.   

Lower Transaction Fees

Another factor responsible for the increased adoption of cryptocurrency in gambling is the lower transaction fees when compared to bank transfers and credit cards. Lower processing fees mean that gamers have more money to stake, and for operators, it also means more money coming in from bets than going to intermediary financial institutions. 

Lower transaction fees also help democratize the industry, as players with small budgets would get more involved rather than being discouraged by transaction fees that could sometimes rival the value of their bets. 

Fast Transactions

With cryptocurrency, the frustration of waiting days on end to withdraw your earnings is eliminated. Cryptocurrency transactions offer the advantage of speed, particularly when it comes to international transactions. Cryptocurrency removes the multiple layers of intermediaries and verification checks that can cause traditional payments to be delayed. 

On the other hand, crypto transactions take place on decentralized networks that validate and confirm transactions in due time, allowing gamers to make faster deposits and start playing almost instantaneously. And when they win, they can get their payouts just as easily. This improves user experience significantly, making them likely to continue to resort to crypto as a payment option. 

Security and Fairness

Blockchain technology offers more robust security that helps to mitigate the risks of fraud, identity thefts, chargebacks, and hacks. This has made online gambling a more transparent process, making more users more trusting in the system.  The decentralized and transparent nature of blockchain means that every transaction is recorded on a public ledger, accessible to all network participants, and is almost impossible to alter or delete once validated. 

The use of crypto in gaming also promotes fairness in the industry, as self-executing contracts (smart contracts) can ensure that games are not rigged in favor of the operators. 

Global Accessibility

Crypto payments in online gambling have also ensured that more people have access to different gaming sites, including offshore casinos that are outside their regions. Cryptocurrencies are no respecter of physical borders, and gamers can easily deposit and withdraw funds regardless of their location as long as the gambling platform accepts their chosen crypto.

This has made gambling sites that might otherwise not be accessible to gamers from regions with restrictive banking policies available to them. 

Challenges to Overcome

Despite the obvious advantages that crypto brings to the gambling industry as a payment method, there are challenges to be overcome if crypto ever becomes the most popular payment method. These include: 

Adoption and Awareness 

Unfortunately, the crypto community is still very niche, and only a few gamers understand how it works. Crypto requires some level of technical knowledge that not everyone has. To improve adoption, crypto must become more mainstream as a means of exchange, and this will have the ripple effect of making it more popular in gaming. 

Regulatory and Legal Issues

In most jurisdictions, cryptocurrency is either over-regulated, under-regulated, or outrightly banned. Some jurisdictions also have gambling laws that do not recognize cryptocurrencies. As governments struggle to understand what to do with crypto, its adoption in the gambling industry will continue to be negatively impacted. 

Volatility

Cryptocurrencies are a highly volatile asset class, and much of their value is driven by speculation, hype, and media activities. This can prevent players and operators from holding them for long or using them as a primary payment method.

Future Outlook for Crypto Payments in Gambling

Already, many online casinos are accepting cryptocurrencies as payment, and there are even dedicated crypto casinos for different classes of cryptocurrencies. Also, as online gambling becomes more popular, more gamers are becoming more tech-savvy, and it is only a matter of time before cryptocurrencies become commonplace.

However, the rate of adoption of crypto as the most popular payment method will depend largely on how regulators of both the crypto and gambling industry are able to navigate the space. Crypto payments in gambling no doubt require regulation, but care must be taken not to stifle the growth of the industry with heavy-handed regulation. 

The rise of stablecoins might help address issues with crypto’s volatility, but this remains to be watched over time. Ultimately, raising proper awareness in gaming circles on the benefits of cryptocurrency in gambling and the right education might just be the piece to crown crypto as the new king of gambling payment methods.