Cryptocurrencies such as Bitcoin are just one of many use cases for block chain technology. In the UK, the Gambling Commission has examined whether playing with crypto currencies causes particular problems. It has expressed concerns about how well licensees will be able to implement effective controls to manage the risks associated with digital currencies. While Licence Condition 5.1 of the Commission’s Licence Conditions and Codes of Conduct (LCCP) now explicitly recognises that digital currencies can be used, licensed operators working with Bitcoin and other virtual currencies may need to implement additional policies and procedures to reduce the risk of money laundering activities and/or breaches of the LCCP’s social responsibility requirements.
What are the issues facing the online gaming industry?
The shortcomings identified by Kibo’s operators include problems related to the deduction of third-party fees from winnings and the lack of availability of payment methods in some areas. This is also the reason why casino fashion is more on the glamorous side and is considered to be the top of the line. However, among the issues that Blockchain technology can potentially address are fairness and transparency in Bitcoin’s casinos:
Fairness of the result/draw: In a traditional online gaming environment, players have no way to verify the fairness of draws or results. They must rely solely on trust and all controls and audits carried out under the regulatory regime applicable to the operator.
Transparency about payouts: Similarly, players cannot usually satisfy themselves that the winnings in a lottery are distributed honestly.
Does the Blockchain have the answer?
The block chain technology certainly seems to have many features that address these problems. Due to its decentralized nature, the block chain is not controlled by a single user, making it almost impossible to change the underlying data. Checking transactions or trades over a network ensures that no single player has an advantage at any stage of the game. This increases resistance to fraud and prevents the manipulation of records in the “chain”. Transactions on the block chain are also transparent to others on the network and therefore traceable.
Accordingly, this technology offers the concept of “demonstrable fairness”, so that all lottery entries, all bets and all payouts ever made within a block chain network are visible and verifiable. Instead of effectively running lottery draws and casino game logic in the operator’s “black box”, game algorithms can be provided to which all participants have access. It is important that they also offer the possibility of carrying out random number generation (RNG) in a completely decentralized and verifiable manner. Even if RNG is not fully decentralized, Blockchain technology can allow players to verify the RNG process in which a particular card is drawn or rolled in order to verify fairness for themselves, as Erik King, Gambla.com, explains in more detail in the articles he writes about the casino niche.
Transparency can also extend to the formation and distribution of the prize fund. This could possibly be relevant in the context of betting exchange activity, where every transaction or bet is carried out from person to person. The need for an intermediary to access a participant’s money is eliminated, as intelligent contracts can set the rules of the game, record the bets and automatically pay out the corresponding winnings.
It seems that Blockchain could become a real change for the iGaming industry. However, the biggest challenge of any gaming business today is the question of trust. Online Casino Zamsino players can be cheated and it is impossible to be sure that the results of the games have not been manipulated. Faced with both obstacles, the biggest players in the gaming market have a strong feeling that Blockchain may be the only reliable option for the industry to continue to grow. In addition to the blockchain features for securing bets and transactions, digital assets offer a number of advantages for those who want to play for money. All personal and financial information is secured and protected, there are no limits to transactions, payouts are made without the involvement of third parties, which means no additional fees.
The forecast: According to the latest reports, the gambling market is expected to grow to 525 trillion by the end of 2023, while the share of online companies may reach 82 trillion. These numbers could rise even further if Blockchain increases its value in the market by providing online games and casinos with a trusted platform where players can make safe bets and secure transactions. Incredible figures for sure, and one waits to see how this rapidly changing landscape will eventually evolve.