Influence of Blockchain on Internet Gambling

Ahead of the highly anticipated first ever segment on the long running CBS news magazine 60 Minutes covering bitcoin, Inside Financial looks at the impact blockchain has had on the gaming sector.

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We often point out here on Gambling911.com that bitcoin now accounts for upwards of 70% of the funding to and from online gambling sites in restricted markets.  Today, even the Pay Per Head sector has gotten into the game.

The blockchain is a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

One of the first benefits provided by blockchain tech, and arguably one of the most important for many, is the anonymity that is provided, Inside Financial states.  Some bitcoin-only casinos and sportsbooks do not even require a registration process, and this limits the potential for hacking.  Casino fairness and transparency concerns do come into play here however.

But don't be fooled.  In our coverage of sports betting forums and social media discussion, we highlight a thread on why it is important not to tie an online gambling account directly to a bitcoin exchange regardeless of the convenience and reduced fees.  That's because the exchanges are able to track their own bitcoin addresses.  And if they are moving to and from wallets associated with online gambling sites, this will be found out. 

Then there is the speed of moving funds, especially as it applies to payouts.

A bug bear of many online casino gamers is that in many instances they must wait for their withdrawals to be processed and then to clear, and this can at times take a few days. As blockchain tech is decentralised, it means there’s no middlemen, and therefore no waiting times. Online gamers will be able to deposit and withdraw funds in an instant, and there will be no fees applied for doing so, so it’s great news all round for casino platforms which embrace the technology.

It’s also important to remember that all these benefits and advantages that are provided through blockchain tech have the potential to attract a whole new audience to the online casino world. From gamers who want to enjoy a platform which is open and transparent, through to those who wish to deposit and play with cryptocurrencies, blockchain tech could breathe fresh life into the industry.

The 60 Minutes piece airs Sunday May 19 at 7 pm EST and should be available for watching thereafter on YouTube or elsewhere.

- Aaron Goldstein, Gambling911.com