Why it Matters There is no doubt that cryptocurrencies have come a long way since Nakamoto launched Bitcoin when he mined the starting block of the chain in January 2009, or Laszlo Hanyecz offered to pay 10,000 bitcoins for a couple of pizzas in May 2010. When it first hit the financial scene, bitcoinlooked like a solution in search of a problem – now it and other more modern cryptocurrencies can used to pay for items as diverse as insurance, consumer staples, luxury watches, and event tickets. These cryptocurrencies can also be used in many online casinos to place bets and receive winnings. In this article, I’m going to talk about the pros and cons of using crypto for online casinos, how it’s done, and why you should consider doing it yourself. The Benefits of Crypto for Online Casino Gambling • In today’s world, it’s impossible to ignore the incredible growth in cryptocurrencies. According to last year’s projections, worldwide revenue in the cryptocurrencies market is estimated to reach US$45.3 billion in 2025 alone, while the number of users in the cryptocurrencies market is expected to reach 861 million users by 2025. This phenomenal growth has been driven by the advantages of crypto, for both retailers and customers, with these advantages applying as much to online casinos as pretty much as any other transaction. These advantages can be summed up under the four headings of security, speed, cost, and privacy. • Security: the blockchain technology underlying cryptocurrencies provides a secure, decentralized database that stores and shares information across a network of participants. The combination of Blocks, Cryptography (which includes encryption), and Consensus provides a high level of confidence for all users. Other advantages of blockchain include Transparency and Accuracy. • Speed: cryptocurrencies offer much faster transactions, with average transaction speedsthat are much swifter than conventional banking methods or even more modern e-walletssuch as PayPal. This means players can receive their wins almost instantly, without lengthy verification processes or waiting times. • Cost: With fast transaction speeds due to blockchain technology, transaction fees have dropped 90 percent for more technologically advanced cryptocurrencies like Ethereum and XRP, even as players get more secure ways to gamble online. • Privacy: Because of the inherent security in blockchain technology, all such transactions are effectively foolproof with players’ funds free from cyber-attacks or other forms of theft. Cybercurrency casinos do not reveal private information, while the identity and security of individuals are protected as they participate in online gambling. The Potential Downsides However, there are still significant regulatory concerns about the use of cryptocurrencies, especially in rapid-transaction and cash-rich environments like online gambling. The primary regulator of UK gambling industry is the Gambling Commission of Great Britain . Under the Commission’s regulations, all licensed online casinos are subject to identification verification Know Your Customer (KYC) processes. Cybercurrency casinos, however, bypass this process and thus allow players to gamble anonymously from any location, which can result in illegal online gambling, exposing those operators to a significant risk from money laundering and fraud. This absence of a clear regulatory framework for cyber casinos can pose major risks for operators and players. Additionally, cryptocurrency markets are notorious for their extremeshort-term volatility, especially when compared to traditional financial markets, exposing users to the possibility their expected winnings could fall just because of crypto-currency fluctuations. Using Bitcoin and Cryptos for UK Online Casinos in Practice At the risk of stating the obvious for some readers of tech news outlets such as Cryptodaily , I’ll also run through the steps you need to follow to use cryptocurrencies for online casinos. 1) The first step is to set up a crypto wallet, ideally with a crypto-exchange which will allow you to keep your coins, send them to your chosen online casino, and buy crypto. Crypto providers approved by the UK Financial Conduct Authority (FCA) as at September 2024 included Portofino Technologies UK Ltd, BNXA UK VASP Ltd, PayPal UK, Revolut, and eToro. Note that the once popular Binance could no longer provide regulated activities and products in the UK as of June 2023, as the FCA had canceled its unused permissions. 2) Once your wallet is funded, you can then make your choice from a wide range of different online casinos with a varied selection of games including casino games, sports betting, and virtual poker. If you would like to see a selection, click here . Then, once you have identified your preferred casino, locate the cashier section, choose your cryptocurrency as your payment method, then copy the provided crypto-wallet address on your screen into your own crypto wallet. Finally, select how much money you want to deposit into the casino, and confirm the transaction. 3) Assuming the gambling gods have smiled on you, withdrawing your winnings will also be as reasonably simple. Firstly, copy the address provided by your own wallet, then select the “withdrawal” option at the cashier section of your casino account, paste in your crypto wallet address, and wait for the casino to process your withdrawal. This process typically only takes a few minutes, so you should find the appropriate cryptocurrency available in your account almost immediately. Conclusion As can be seen, bitcoin and other cybercurrencies offer significant advantages for the online casino gambler, including enhanced security, greater speed, reduced transaction costs, and sometimes increased privacy. However, while users who stick to UK regulated online casinos shouldn’t face any of the potential money-laundering and fraud risks suffered by customers who opt for cybercurrency casinos, all cryptocurrency users are still exposed to greater risk from short term currency volatility. You can also see from the above that the process of buying crypto, using it in the casino, and withdrawing your winnings, are comparatively straightforward. Just remember, it’s always wise to reduce your risk by sticking to properly regulated casinos, and gambling responsibly, and don’t forget to have fun. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
