SJM Holdings and European game developer SmartPlay.tech have finalized their cooperation, which could completely revolutionize the gambling industry. The cooperation between the two parties looks promising, as introducing the blockchain in gambling machines has presented multiple unprecedented advantages.
According to Hong Kong’s HK01, SJM Holdings Limited, one of the largest management companies in the Chinese gaming industry, and SmartPlay.tech developers discussed the possibility of incorporating the latter’s blockchain platform into existing gambling and slot machine software. Such a partnership may be a win-win that could benefit private casinos and the gambling industry as a whole.
Said Wei Huang, SJM’s Gaming Business Development Manager in Macau:
Our corporation has been exploring such possibilities since the early 2017. Our key client market research has revealed that the introduction of cryptocurrencies in gambling not only makes the service more attractive, but also contributes to the reduction of agent charges and optimizing internal processes. SmartPlay.tech has an extensive experience in the field of developing blockchain solutions and integrating its advantages in the software space.
Huang noted that due to tightening of the requirements for the cryptocurrency market by the Chinese regulatory authorities, the corporation was forced to suspend negotiations with the developers. However, it has since become possible to finally implement the agreement on joint cooperation.
Earlier, SmartPlay.tech announced the launch of the world’s first blockchain-based slot machine, called SmartBox. Its first generation is a high-tech sensor table which may include a cash acceptor.
SmartPlay.tech also has its own crypto-token called RouletteToken (RLT), which is primarily used for accessing all its games, products, and services, including SmartBox. It’s also traded on cryptocurrency exchanges. With said cooperation, RLT could become one of the most accepted cryptocurrency tokens connecting partners and customers.
SmartPlay.tech’s developers have demonstrated the cost-effectiveness of implementing blockchain-based solutions in the gambling industry. For example, in one of its games, the team was able to reduce the processing fee from 10% to 0.5%. The introduction of such a solution into a multibillion-dollar market, according to preliminary estimates, could reduce operating costs by several tens of millions of dollars.
Both parties agree that China is the leader in the turnover of digital currencies and is ahead of other countries in terms of cryptocurrency trading volume. It is quite logical to assume that if the possible ban on cryptocurrency exchanges comes into force on the mainland, Macau’s casinos will be some of the very few places where it will be legal to spend such crypto-assets.
Earlier, China had already closed all major cryptocurrency exchanges functioning in its territory. However, according to the authorities, they even plan to block access to local and offshore platforms that offer centralized trade to their citizens. It is possible that following the inflow of domestic funds, the emergence of cryptocurrencies in gambling institutions will attract an influx of external capital. Is this a benefit for the authorities, who not so long ago expressed a desire to issue their own cryptocurrency? How will the gambling institutions declare their income?
Against the backdrop of the informal ban on cryptocurrency gambling in Australia earlier this year, the government of Malta, in turn, plans to create an entire cryptocurrency gambling zone. The Chinese authorities could resort to such innovative ways to increase their competitive advantage.
In addition, there is a risk that in the face of capital outflows, the Chinese government might tighten restrictions on the cash flowing into Macau. Macau is heavily burdened with debts from all six casino operators, and is primarily focused on serving VIP customers. In order to save money, the company has also reduced dividend amounts. Therefore, the integration of cryptocurrency in gambling will bring about considerable changes in Macau.
The presence of casinos has helped China out of its crisis. Therefore, even with a negative attitude towards it, Chinese authorities continue to expand gambling, particularly in Macau. The introduction of cryptocurrency could be a decisive measure in the pursuit of new indicators.