Cryptocurrencies and Gambling: How does One License Bitcoin Games?
The cryptocurrency and blockchain technologies are developing at an incredible speed, with more usage options cropping up every day. One of the most important industries penetrated by this innovative technology is iGaming, also known as online gambling.
According to expert estimates, the global gaming industry will exceed 525 billion dollars by 2022 which is approximately equivalent to 68 dollars per person planet-wide. Cryptocurrencies, on the other hand, already have established relations with iGaming – around 50% of bitcoin transactions are currently attributed to online games.
What is the Formula for Success of Cryptocurrency Games?
Firstly, cryptocurrencies such as Ether and Bitcoin facilitate access to the market for people residing in jurisdictions where gambling is prohibited. For instance, any transactions involving gambling websites would raise suspicions on the part of banks and subsequently supervisory state authorities in most Asian countries.
Secondly, there are a lot of online gamers who simply do not wish their gaming transactions to be reflected in the bank statements, and cryptocurrencies ensure anonymity while also simplifying money deposits and withdrawals.
Finally, yet importantly, cryptocurrencies and blockchain technologies are a way to show users that the games are safe and fair. With all cryptocurrency transactions registered within the blockchain technology and thanks to the implementation of smart contracts, the operators’ credibility could be enhanced significantly, and there is less room for foul play.
Bitcoin Games – to License or Not to License?
It is important to keep in mind that a gaming license is a must for gambling businesses that need to set up corporate accounts with banks or other financial institutions and operate online payment systems officially.
But when, say, an online casino uses bitcoins, all payments can be processed in the cryptocurrency without engaging third party services.
Funds are deposited and withdrawn almost immediately, and bitcoins are transferred directly between gamers’ bitcoin wallets and those of the casino. Thus there is no need to provide any financial institutions with a gaming license, and one may say that when bitcoins are involved the gambling license is unnecessary or at least is not mandatory for accepting payments.
On the other hand, many players consider bitcoin casinos like any other traditional online casino. They want to make sure that they are investing their money in a reliable and secure online environment and that their rights are protected by an independent authority. This being the case, a valid gambling license issued in one of the licensing jurisdictions becomes a powerful marketing tool contributing to gamer loyalty and boosting the casino’s reputation.
Planning to launch an online gaming project? Contact us for a consultation right now: our lawyers will recommend the optimum solution for the jurisdiction selection, licensing and implementation of all essential payment solutions. SBSB: your business – our care. Join our Telegram chat for free online consultations.