The inception of online gambling dates back to 1994 when Antigua and Barbuda passed the Free Trade and Processing Act, allowing licenses to be granted to online gambling companies like Kapow Casino. Since then, the online gambling industry has exploded into a $66.7 billion market, with projections estimating it will grow to $100 billion by 2026.
This astronomical growth is largely attributed to increased internet and mobile access globally, but technology innovations like blockchain and cryptocurrency have also propelled the industry forward at warp speed, radically transforming user experiences and operator models.
Improving Security and Transparency
One monumental benefit blockchain introduces into online gambling is vastly improved security and transparency measures superior to traditional online casinos. Blockchain’s distributed ledger structure gives the technology innate encryption, tamper-proofing, and decentralization attributes.
Every transaction on a blockchain network is secured with advanced cryptography, recorded permanently on an immutable ledger, and executed without intermediaries. These features mitigate concerns of hacking, cheating, identity theft and make online gambling exponentially more secure. They also increase transparency for regulators and build player trust.
For example, because no centralized entity controls the network, there is no single point of failure vulnerable to attack. The decentralized nature also decreases chances of malicious activity or coded biases going unnoticed since everything is visible on a public ledger.
Furthermore, blockchain-based online gambling sites utilize smart contracts to automate payments, random number generation for games, and other processes. These self-executing contracts are immutable and transparent, allowing users to independently audit outcomes.
Cryptocurrency Payments
The other major transformation blockchain enables for online casino list operators is accepting cryptocurrency payments. Cryptos allow for cheaper, faster, 24/7 transactions compared to traditional fiat payment methods. Their decentralized nature also provides users with improved financial privacy.
By integrating cryptocurrency payment options, online casinos expand their customer base to eager crypto holders. Top cryptocurrencies used for online gambling transactions include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Dash, Monero, Tether, and Dai.
Cryptocurrency deposits and withdrawals are becoming more commonplace on gambling sites due to fast processing times of just minutes compared to days with bank transfers or credit cards. Lower fees also make tiny transactions viable that would normally be too costly through traditional finance. This allows for innovative micro-betting models.
And because cryptocurrencies operate without attachment to banking institutions or governments, there are no transaction blocks or account shutdowns. Regulatory jurisdiction complexities are also mitigated, increasing access for excluded populations.
Provably Fair Gambling
On top of security reinforcements and crypto payments, blockchain also facilitates provably fair gambling through its transparency features. Provably fair systems derive random game results from hashed seeds on the blockchain visible to both players and casinos.
This showcases hands aren’t tampered with behind the scenes to skew odds in the house’s favor. Players can independently audit outcomes with certainty they weren’t manipulated, increasing trust and satisfaction.
Without blockchain enabling verification of random number generation and game histories, users would have to blindly trust online operators weren’t altering software for profit gains. Now, users can conclusively validate game integrity on the tamper-proof distributed ledger.
Key Players Emerging
With blockchain technology’s clear advantages for improving today’s online gambling, industry development in the niche has rapidly grown. Some key players emerging are:
FortuneJack
Founded in 2014, FortuneJack is the largest Bitcoin casino in the world. It offers thousands of casino games, sports betting, binary options trading, live dealers, poker, financials, and more with cryptocurrency deposits. FortuneJack also features generous signup bonuses and accepts over 20 cryptos including BTC, BCH, LTC, ETH, XRP, TRX, and many more.
Bitstarz
Multi award-winning Bitstarz was established in 2014 and provides over 3500 casino games with fast withdrawals and 3500+ slots. This self-proclaimed “world’s best bitcoin casino” carries licenses from Curacao and accepts 8 cryptocurrencies – BTC, BCH, LTC, ETH, DOG and USD stablecoins.
BetFury
Launched in 2019, BetFury has exponentially grown to over 50 000 users with 600+ games. It focuses on innovative gambling products like BFG Staking, BFG Bonus, and BFG Token rewards for loyal players. The casino carries cryptography-verified fairness and withdrawal certificates for guaranteed player security and satisfaction.
Stake
Popular for its speed, low house edge, and provably fair control system, Stake offers Baccarat, Blackjack, Roulette, Crash, and instant withdrawals/deposits. Major draws include free daily rewards, high betting limits, and over 20 cryptos supported including BTC, ETH, LTC, BCH, XRP, TRX, DOG plus stablecoins.
The Verdict
While online gambling has been on a steady incline since its beginnings in 1994, blockchain stands to rocket the industry to unseen heights. With transparency, security, anonymity, accessibility and regulatory technology advantages, blockchain gambling projects have gone from non-existent to flourishing in just a few short years.
Moving forward, crypto and blockchain implementations will likely be adopted by traditional online casinos to keep pace with fintech transformations. But blockchain-based gambling sites will continue leading innovations as adoption expands globally in the years to come.