If you’ve been in the online gambling industry as long as we have chances are good you experienced the old ‘wild west’ days. Back then a bunch of trigger-happy cowboys dotted the landscape while regulation was just a byword and often frowned upon when it pitched up in conversations.
Fast forward to today it’s a different story altogether, regulation is key and plays a pivotal role in keeping licensed online casinos in check. In other words the random number generators (RNG) of the casino games stocked in their game libraries must be audited regularly to ensure safety, they must endorse responsible gaming, reward regular depositors and have on going promotions where players can earn additional rewards.
When Bitcoin entered the online gambling arena the crypotcurrency ushered in the dawn of a new wild west era. Due to its centralized nature many governments feel that the time has come to properly regulate it.
Why Bitcoin is the Way to Go
Bitcoin or any other cryptocurrency offers both online casinos and players a slew of advantages. Transactions fees are practically zero, there are no chargebacks, it’s anonymous and cash outs are cleared within a few minutes. When compared to traditional operators, Bitcoin casinos are far more transparent thanks to its blockchain technology.
There have been isolated cases of crypto theft and other nefarious activity associated with the digital currency, much like the early days of online gambling. When new technology and large amounts of cash are involved cloak and dagger stuff will occur, unfortunately it’s the nature of the beast. However, cryptocurrencies like Bitcoin has a built in security feature that’s a country mile ahead of any fiat currency.
Even in a highly regulated gambling environment like the UK, players still become frustrated with the standard deposit and withdrawal methods, not to mention chargebacks. When you play at a Bitcoin casino there are no chargebacks because once the transaction is placed on the blockchain it cannot be reversed. As a result it gives Bitcoin casinos and players peace of mind, or so to speak. Furthermore, once a transaction is made on the blockchain it can be traced and seen by the relevant parties.
Bitcoin is Transparent
When discussing cryptos and blockchain technology transparency is a word we hear a lot. Every transaction providing you know how to do it can be viewed on the blockchain. The last bit is important especially when it comes to using blockchain technology in the gambling industry. Before Bitcoin can become the mainstay of the online gambling world the ‘who’ issue must be addressed first. Luckily the blockchain has been build specifically for this.
What Does ‘Provably’ Fair Mean?
The first thing Bitcoin casinos tell you about their games is that they are ‘provably fair’. With the odd case of pirated software our industry is no longer plagued by operators using underhanded methods to further their cause. In most cases the games are completely random and fairness is guaranteed.
”Players like to be in control of their cryptocurrencies. This is one of the main reasons why Bitcoin was created, it gives control back to the individual.”
How does the ‘provably fair’ model work? Before a bet is made a part of the seed (string of text) is placed, you will then be presented with a hash (another string of text) that only you can create with your seed and a seed provided by the Bitcoin casino which results in the hash. Herewith a simplified explanation how it works:
Seed A + Seed B = hash
The roll of the dice or spin on the slot reel is presented by the hash which is an alphanumerical string. Now, if a Bitcoin casino tries to tamper with its gaming platform it won’t succeed, here’s why. Before you placed a bet it showed you a string of characters, a specific string only has a single outcome. The best bit to us is that the fairness of each and every game for that matter can be verified by anyone who knows how to view it.
The crypto solutions for gambling must have built-in AML (anti-money laundering), KYC (know your customer), additional regulatory features and responsible gaming policies. This is where government regulation comes in. Not only must they ensure that these solutions are kept but they guarantee the long-term success of cryptocurrency-friendly online casinos.
Operators must not alienate their Bitcoin customers by imposing stringent terms and conditions banks and regulatory authorities are guilty of. Players want to avoid it all cost since they prefer to remain anonymous.
Why Regulation is Important
”Education along with a mindset of compliance are essential ingredients of a successful future between crypto and gambling.”
Before Bitcoin or any other crypotcurrency can fully emerge from the shadows it must foster a sustainable working relationship in regulated online gambling markets (Nevada, New Jersey, UK and Europe). The Double C Foundation has been established expressly for this. It’s a non-profit organization based in the Isle of Man that educates, promotes and encourages the use of cryptcurrencies in the internet gambling business.
There’s an ocean of potential crypto gamblers out there, before new customers can be roped in regulators must address the challenges Bitcoin faces today. Since the gambling industry is always the first to use technology, it must be the catalyst that drives new regulatory mechanisms. To do this it must educate players, itself and the powers that be. Casinowhizz.com
This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.