Digital Assets in Gaming: Future Prospects

Experts of the Online Casino Market company will tell you how blockchain is changing the entertainment industry, and what are the perspectives of virtual money. We will help you to launch a successful and profitable business.

About the Concept

It is a digital payment system that does not require the participation of banks in the process of verifying transactions. The data is encoded using cryptography. This approach provides increased security. Information from the public blockchain registry can be viewed but it is impossible to delete or modify it.

Features of crypto settlements:

• they exist only in digital form and in an online database, which describes specific transfers;
• no connection with physical money of different denominations;
• fixation in a public registry;
• storage in virtual wallets.

The first blockchain unit was Bitcoin, created in 2009. Today, its capitalisation varies between $39,185 and $47,893. By 2030, according to forecasts from the Traders Union online publication, the cost of BTC will exceed $130,000.

The global crypto niche is estimated in larger sums. Thus, at the beginning of 2024, its market cap was $2.6 trillion. The figure is comparable to half the nominal GDP of Germany, the leading economy of the European Union. Popular digital assets include Bitcoin, Litecoin, Ethereum, Ripple, etc.

Today, they are used in many sectors of the economy. These are finance, insurance, banking, logistics, tourism, and gambling.

There are more than 420 million owners of blockchain wallets in the world, of which 31 million live in Europe.

Benefits of Using Digital Assets in the Casino Sphere

Global Betting and Gaming Consultants report that, at the beginning of 2024, the industry’s volume was $90 billion. The number of entertainment platforms that are based on this technology has exceeded 200 sites, and the number of active players is more than 130 million.

It is obvious that the volume of blockchain transactions in the casino niche will only grow every year. Today, many companies are fully or partially switching to crypto settlements, realising the enormous advantages of this option.

The main benefits of using such payments:

1. Anonymity. Only the numbers of blockchain wallets involved in the transaction are entered into the public registry. No other info is provided, which ensures anonymous gambling from anywhere in the world.
2. Low-cost. Transfers of this type do not involve conversion or other expenditures that online casinos and bookmakers’ offices often face. Therefore, crypto operations are cheaper, especially when players replenish their accounts with small amounts.
3. A variety of financial solutions. It is possible to deposit funds in Bitcoin, Throne, Litecoin, Monero, and other promising tokens. BTC is the most in-demand digital unit among customers. According to Traders Union, 58% of transactions on entertainment portals are carried out using this currency.
4. High speed. The technology provides instant money transfers. The process takes literally from 10 to 15 seconds, after which clients can immediately spin the reels in slots and receive generous prizes. At the moment, virtual assets are the fastest and most efficient payment method in the world.
5. Excellent security. It is achieved through innovative cryptographic encryption programs. Each digital unit uses its unique algorithm. This makes cryptocurrency the most secure money in the world. They are not afraid of hacker attacks, large-scale failures, data leakage, and other crisis situations.
6. The lack of chargeback. This is a groundless return of funds, which is often utilised by scammers. If, for example, a user has lost a large amount, they can report an erroneous transfer to a casino or a sportsbook platform. Then the bank returns this money to the gambler's account, and that is why the operator loses profit. In the case of blockchain transactions, chargeback does not exist at all, which significantly reduces the risk of fraud.
7. Decentralised operation. The activities of entrepreneurs do not depend on regulators, tax structures, banks, financial organisations, and other control bodies. Casinos independently set limits on the deposition or withdrawal of funds, determine the rules of iGaming entertainment, and initiate additional customer verification.

How Crypto Casinos Work

There are 2 types of gaming projects that are based on decentralised technology.

Off-Chain Sites

In this case, digital currency is used as a way to replenish an account, often along with traditional fiat units (US dollars, euros, and pounds sterling). Thanks to this, betting resources can be equally interesting for both lovers of blockchain operations and those who prefer to play using local money.

Project owners can accept payments independently or work with third parties. Conversion solutions are provided by BitGo, B4U Global, Alphapo, and other aggregators. All of them obtained the necessary licences, so businessmen do not have to worry about the legality of transactions.

Brands that manage this category of portals use decentralised services. Therefore, for lawful gambling, people are required to register and pass the verification procedure. Besides, such entrepreneurs often block IP addresses, prohibiting the placement of bids by customers from jurisdictions where this kind of activity is considered illegal.

On-Chain Platforms

The work of these iGaming sites is based on decentralised blockchain applications.

All information about the operation is recorded in smart contracts and is a public confirmation of bettings. Such agreements also serve as a guarantee that if a player’s wager is successful, they will automatically receive a prize.

The described apps ensure high reliability and security of transfers. Users can play anonymously and from anywhere in the world without prior registration on the casino’s portal.

On-chain resources are not subject to government requirements. For a legitimate operation, there is no need to obtain a licence, wait for the bank’s approval, etc.

Legal Regulation of Blockchain Casinos

The future of crypto funds largely determines how it will be perceived by people and authorities.

The more citizens and state bodies start using digital money, the stronger its position in the world will be. Therefore, the development of the law and IT infrastructure are important components for the cloudless future of digital assets.

Today, blockchain-based gambling is legal if 2 conditions are satisfied:

• the country allows online casino products;
• the jurisdiction has recognised the circulation of cryptocurrency as an official method of payment (for example, the United Kingdom) or as a unit of account (like in Germany).

At the moment, these requirements are met in only a few states. Therefore, entrepreneurs are increasingly turning their attention to special zones where iGaming was legalised about 20 or 30 years ago.

Offshore Territories

Countries that have a positive attitude toward the launch of blockchain-based casino startups are:

• Malta;
• Isle of Man;
• Curacao;
• Gibraltar;
• Kahnawake;
• Panama.

The Isle of Man is one of the leaders in the number of issued permits for crypto gaming projects. In 2019, the jurisdiction introduced a procedure for licensing platforms that deliver services for the B2C and B2B segments.

The local Blockchain Office and Sandbox consults and provides legal support to businesses that use decentralised technology, as well as offers programs to support entrepreneurs in the form of grants/portfolio investments.

Taxes in the country are among the lowest in the world, from 0.1% to 1.5% of GGR.

Curacao is also changing its gambling legislation toward blockchain transfers. In 2017, the jurisdiction was the first in the world to issue a licence for owning such a platform, and in 2024, it entered the top 3 offshore zones that support crypto entertainment.

The region is famous for its low taxes, well-developed community, and simple procedure for obtaining a permit.

USA

North America is one of the most promising markets for launching and scaling a casino business. The iGaming activity is officially allowed in only 6 states. These are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. It is there where operators need to implement their projects.

Crypto legislation varies depending on the chosen region. There is also a general guide for blockchain companies issued by FinCEN (Financial Crimes Enforcement Agency) in 2019. According to the document, all legal casinos that implement decentralised technology are subject to the Bank Secrecy Act.

Europe

Most EU member states independently determine the legal framework for iGaming. For example, in Estonia, Germany, Finland, and Denmark, a special certificate for conducting transactions in digital assets is required to launch a casino project.

In 2025, the MiCAR document will come into force. It should regulate the circulation of such funds in the European Union and introduce a unified procedure for licensing/taxation of financial operations.

In the UK, there are no common rules for regulating the work of blockchain platforms. Entrepreneurs are mostly driven by the UKGC guidelines from 2017.

Switzerland is leading the European race in integrating cryptocurrency into the traditional banking structure. Today, its government already allows levies to be paid in digital money and strongly supports startups based on the described settlement method.

The Future of Blockchain Solutions

Elon Musk, founder and CEO of Tesla and SpaceX, said:

I hope that digital assets will increase the efficiency of funds, as well as reduce the costs and distracting factors in the traditional financial system. Decentralised technology will also improve the standard of living and eliminate borders between countries.

The prospects of crypto payments:

1. Increase in the number of specialised exchanges. These are services that act as a link between casinos and their visitors. Experts predict that in the next 5 years, there will be even more such projects, which means that entrepreneurs will have access to high-quality options.
2. The emergence of new types of virtual currencies. Thus, the authorities of India and China are actively working on creating national digital signs. In the future, such money will be integrated into the business environment of countries and all iGaming startups.
3. Changing regulation. Many jurisdictions are already updating the legal status of blockchain transactions or are actively evolving toward it. This approach increases trust in the funds of this type, both among the B2B segment and players.
4. Development of IT infrastructure. For example, the emergence of quantum computers poses a danger to cryptographic protocols. Therefore, providers should improve the currency’s security. One of the most promising innovations is the creation of digital units with constantly updated encryption algorithms.

The Main Things about the Future of Blockchain in iGaming

This is a promising technology that is gaining popularity in the entertainment industry.

Key aspects that operators need to take into account:

• The benefits of using crypto funds include anonymity, safety, and the low cost of transfers. Players like the fact that there are many settlement methods, their high speed, as well as the ability to place bets from anywhere in the world.
• Blockchain projects are divided into 2 types. Off-chain sites accept bids in both virtual and fiat money. On-chain platforms function as decentralised applications where all information about the operations is recorded in smart contracts.
• Legal regulation of digital assets varies depending on the chosen country. It is most profitable to start a casino or bookmaker’s office of this type in offshore zones. These are regions with a developed economy, stable legislation, and low taxes.
• The future of crypto payments depends on many factors. New virtual signs are expected to appear soon, and even more specialised exchanges are expected to open.

You can buy a turnkey portal, a White Label resource, and other solutions at Online Casino Market. We suggest using our configurator to quickly create a unique iGaming project.

From us, it is also possible to order the following useful services:

• development of HTML5 slots based on individual sketches;
• installation of financial systems;
• security software connection;
• assistance in obtaining a licence;
• promotion of casino startups, and much more.

Order a service