The gambling history has always had a shady image. Bookies and casinos are well known for manipulating the system in their favour. However, casino platforms created on open-source blockchains could be about to transform the gambling industry.
Online Gambling Will Keep Growing
The Internet and the introduction of online gambling transformed the face of the gambling industry forever. It allowed anyone with an internet connection to participate in their favorite casino games and place bets from pretty much anywhere in the world.
Gambling quickly grew into one of the most lucrative and popular online businesses, and despite heavy regulations, online gambling is continuing to grow at an impressive rate. Market research firm Modor Intelligence forecasts a growth of 8.77% CAGR between 2019 and 2024.
Despite this optimistic outlook, online gambling casinos are faced with several key challenges, especially a lack of transparency.
Historically, online casinos offer low transparency on wins and losses, and have been accused of using unfair practices to give themselves an advantage, since players have no way of checking the fairness of any result.
This leads to many gamblers avoiding online platforms due to a lack of trust, which is stunting the industry’s growth. The introduction of blockchain technology looks set to transform the online casino and gambling industry by providing transparency.
Advantages of Using Blockchain
Games built on smart contracts allow users and businesses to verify transactions on a shared ledger. All transactions: wins, losses and payouts are recorded permanently on the blockchain ledger which helps to eliminate bad practices and brings fairness back to the online gambling industry.
Blockchain technology offers users instant payouts in digital currencies, compared with regular online casinos who on average have a processing time of 3 to 5 days for withdrawals, and some can take considerably longer especially if it's your first withdrawal.
Anonymity is another key benefit as users don’t have to enter any personal details and by operating with digital currencies. Also, users no longer have to share sensitive banking information online.
Disadvantages of Using Blockchain
There are a number of regulatory concerns which surround blockchain gambling. Any blockchain gambling platform that intends to gain mass adoption would have to comply with the regulatory framework within the country it is considered to be in.
For example, a company considered to be based in the United Kingdom would have to comply with the Gambling Act 2005, even if it is not intended for UK customers.
Anonymity may prove to be a major obstacle for blockchain gambling adoption. Although anonymity is a buzzword among the crypto space, it won’t sit well with regulators who have voiced concerns about effective age checks and anti-money laundering procedures.
Apart from legislation, blockchain gambling faces a range of other problems, such as, the wide-ranging implementation of the technology, risk of abuse and raising public awareness in cryptocurrencies.
It’s no surprise that blockchain gambling is seeing considerable growth at this moment in time. Blockchain gambling creates a win-win situation for players and operators by creating an environment based on fairness, trust and transparency.
It might not be the perfect solution, but it does go a long way to addressing some of the major concerns associated with online gambling. If regulatory concerns are overcome, then I believe blockchain will revolutionize the gambling industry in the coming years.
Author: Ronan Mullaney