In recent years, Bitcoin and other cryptocurrencies have revolutionized the gaming industry by introducing a safe, reliable and quick payment method that enables players to enjoy a smoother playing experience.
On the other hand, casinos prefer cryptocurrency because it’s easier, faster and cheaper to process than regular credit cards and checks. You see, processing player deposits and withdrawals can be a costly affair for online casinos due to all the fees involved in each process.
Then you have to consider some of the roadblocks they have to deal with when it comes to dealing with credit card companies. In most cases, credit card companies will try to block transactions to online casinos, which means gambling sites have to work with third-party companies in order to get their money. The casino must also protect itself from chargebacks and fraud credit card charges which are quite common, unfortunately.
Then you have government organizations who are always trying to keep money from casinos by brandishing them as “illegal establishments.”
Considering all these challenges online casinos have to face just to process money, it only makes sense that cryptocurrency and online casinos would make natural allies.
While lawmakers have tried every trick in the book to stop people from gambling, frustrating the transactional side of things has been their most successful tactic. Fortunately for players and online casinos, cryptocurrency is an easy way to get around the red tape.
At the end of the day, online casinos want to see happy customers and part of that is making sure the players get paid fast so they can come back and make gambling deposits again.
Bitcoin: Savior of the Online Gambling World
The revolution started in 2016, at a time when most online casinos were at their wits’ end. Processing credit cards and check payouts were becoming increasingly expensive not to mention difficult. Credit rules and regulations sought to choke the industry out of business as the number of successful credit card deposits dwindled to 50% and 60%.
Luckily, Bitcoin was introduced as the ultimate solution for both players and casinos that were becoming incredibly frustrated at this point. Online casinos started accepting Bitcoin in droves during 2016. This meant investing in infrastructure and skilled personnel whose job it was to integrate Bitcoin payment and cash out systems that worked.
Some of the first online casinos and sports books to jump on the bandwagon include Betonline Bookmaker, Pinnacle, 5dimes, Intertops, and Bovada.
This widened the scope of online casinos that accepted Bitcoin and opened the two industries to one another in a big way. Most gambling affiliates stopped accepting check payments altogether. It wasn’t hard for them to convince players to transact in Bitcoin either, as most casinos gladly offered incentives to players who use crypto on their platforms.
Some even went as far as to offer crypto only bonuses and benefits, and of course who could resist the allure of getting paid fast and efficiently?
However, it seems like these establishments counted their chickens before they hatched because Bitcoin subsequently experienced a spectacular fall.
The Challenges of Accepting Bitcoin
It’s no secret that as a currency Bitcoin is volatile, and has been for a few years now. The exchange rate moves so fast that you never know when it’s going to work for you or against you.
Also, it’s not entirely true that Bitcoin withdrawals are faster than checks and credit cards. Sometimes, withdrawing your winnings with Bitcoin can take longer than using a debit or credit card because Bitcoin is processed manually.
Scamming is another huge issue that online casinos accept Bitcoin have to deal with. Although cryptocurrencies like Bitcoin are based on transparency they also offer users complete anonymity which can make it difficult to track someone’s Bitcoin wallet.
That’s why Bitcoin and other cryptos are pretty much the safest and only payment method that people use in the dark web. Plus, it’s easier for online criminals to access a Bitcoin wallet than it is to access your online banking details. Unfortunately, this problem has led to considerable losses for Bitcoin casinos and it can be difficult to predict.
Other challenges facing online casinos that accept Bitcoin include lack of poor licensing and documentation. You see, Bitcoin doesn’t come with any licensing requirements, which means casino providers can save a ton of money in license application fees. But, this can also diminish their credibility with players and attract the wrong sort of customer that doesn’t really play fair.
There’s no denying that cash is still king in the world of on and offline gambling. But, as virtual currency continues to shake the world, it only makes sense that online gambling establishments should adapt to the changes by accepting Bitcoin payments and withdrawals.
As you can see, Bitcoin doesn’t come with the same red tape associated with using credit cards and checks. But, as with anything, it has its pros and cons so your best bet as a player is to only support reliable Bitcoin casinos that have a positive track record.