In order to cater to players who want to play with cryptocurrency, such as Bitcoin, Ethereum, Litecoin, etc. you will need to either include cryptocurrencies as another casino payment method in addition to traditional payment solutions or operate a fully blockchain crypto casino.
With that said, you might be wondering what exactly is this type of casino and how can you launch one or upgrade your existing business to offer crypto payments? Top Casino Solutions has the answers you need to understand the basics of how offering this decentralized currency as a real money wagering and payment can be an advantage in the online gambling world.
Best iGaming software providers offering crypto and Bitcon casino solutions:
What is a Crypto Casino?
A crypto casino, sometimes called a Bitcoin casino, is a gambling platform that permits players to make deposits and withdrawals with cryptocurrency, such as Bitcoin (BTC) and/or other cryptocurrencies like Ethereum (ETH), Litecoin (LTC), Cardano (ADA), and so on. At these casinos that offer crypto gambling, players can bet on real money games (e.g. slots, table games, live casino games, etc.) with cryptocurrency for the chance to win cryptocurrency.
There are essentially two types of crypto casinos:
- A casino that accepts only cryptocurrency payments.
- A casino that includes crypto payments as well as traditional payment methods (e.g. credit cards, debit cards, eWallets, bank transfers, etc.) and currencies (e.g. EUR, GBP, USD, etc.).
Ideally, if you want to appeal to as many players as possible, the best option is to offer a variety of payment methods and currencies, and not only one type – crypto or otherwise.
What is Cryptocurrency?
Cryptocurrency is a decentralized digital currency. It is a digital-only form of payment that can be exchanged online for goods and services. Several companies have issued their own currencies, which are commonly called tokens. These tokens can be traded specifically for the services or product that the company offers. To obtain these tokens, you buy them in the same way you would casino chips or arcade tokens. Essentially, you exchange real (physical) currency for the cryptocurrency to access what the company has to sell.
Cryptocurrencies work using blockchain. This is a decentralized technology that is spread across a vast number of computers. It is responsible for managing and recording transactions and is highly secure tech.
To better understand how cryptocurrencies work, here’s a closer look at the world’s most popular, well-known and widely used cryptocurrency, Bitcoin.
What is Bitcoin?
In case you are unfamiliar with this form of currency, Bitcoin is a decentralized digital currency and peer-to-peer technology that has been in use since 2009. Its form is 100% digital, which means that there is no physical paper or coins for bitcoins as there are for traditional types of currency. Moreover, as it is decentralized, this means that there is no central bank or single administrator that oversees its operation. This level of anonymity is one of the reasons why cryptocurrencies have gained popularity over the past decade.
Users of Bitcoin use a crypto wallet to make secure and anonymous transactions to one another. These transactions are verified by network nodes through cryptography and recorded in a public distributed ledger known as Blockchain.
As of September 2019, a Statista report found that there were over 42 million Blockchain wallet users. Of all the cryptocurrencies currently available, Bitcoin remains the most widely used.
How do Crypto Casinos Work?
A crypto casino functions in a similar fashion to a traditional online casino. It uses gambling software that conducts and runs the games. It is common for most Bitcoin casinos with a large user base to run their own in-house gaming software. Smaller casinos, and those that offer other traditional payment methods, typically purchase or rent versions of software that can be customized by adding a few unique features to the games. Also, Bitcoin gambling sites have their own cryptowallet to accept BTC and other crypto deposits.
Due to the fact that everything is digital when it comes to crypto technology, it is important for these casinos to establish trust with their players by being fully transparent about how their software algorithms function. Keep in mind that crypto users are not typically strangers to technology, they often have a good idea of how cryptocurrency functions and have certain expectations. These are player who have crypto wallets, who know how to earn Bitcoin and other cryptocurrencies, and who frequently use this type of payment. Transparency and security is key to keeping these customers happy.
Additionally, it should be noted that if you intend to run a crypto-only (purely blockchain-based) casino (no other form of payment processing), you may not require a gambling license to operate, nor do you require a merchant account. The laws that govern gambling involves banks, credit cards and cash processors. Cryptocurrency requires none of these and it does not meet the definition of currency in any of the current gambling laws.
Advantages of A Crypto Casino – Why is Crypto Gambling so Popular?
The primary advantages of operating a crypto casino is that it will attract a large number of players who appreciate the unique benefits that cryptocurrency, like Bitcoin, offers them. Among these benefits include (but are not necessarily limited to):
- Anonymity – Hands down, anonymity remains the number one reason why players like Bitcoin casinos. Users can make transactions without being tracked because bank account information is not needed. Their personal data remains confidential as it is not required to conduct transactions. Some cryptocurrency-only casinos don’t even require players to register to play, further increasing anonymity.
- Low or no transaction fees – While some casinos offer no traction fees, even those that do offer lower transaction fees compared to those associated with traditional payment methods. The simple reason is that there are no financial institutions involved. Therefore, crypto players do not have to pay higher commissions when making deposits or withdrawing their money.
- Low deposits – Players can make bets with bitcoins that are much lower than traditional minimum deposit limits. For instance, they can make a deposit that may be equal to an amount less than a dollar.
- Near instant payments – Cryptocurrencies can be deposited and withdrawn quickly, with little to no wait time. They take significantly less time than typical payments do to process as crypto transfers are made directly.
- Global access – Cryptocurrencies are available worldwide. Players all over the globe who use it can play at any BTC casino at any time of the day or night.
- Top privacy and security – Blockchain is highly secure and the anonymous nature of cryptocurrency gives it a natural high privacy rating.
- Win bitcoins – Players can win bitcoins when they gamble. Although this is not the same as earning bitcoins, it is another way to acquire them.
It is these benefits that can help you get a leg up over the competition, especially if you manage to not only attract a larger number of players, but also maintain their loyalty.
Advantages for the operator
In addition to why players tend to love these casinos, the advantages of running casinos with cryptocurrencies include:
- Anonymity of client data and payments – no third-party involvement
- Cryptocurrencies are not controlled by any existing taxation system, so limitations and restrictions are not necessary
- You can offer fast transactions, deposits and withdrawals
- Offer a wide choice of games from top industry providers
- Deliver financial security without the threat of fraud
- Cryptocurrencies are available in every country and its possible to covert it into any existing currency
- You can market promotions and loyalty programs specifically too Bitcoin players
- Lower transaction fees as payments carried out in cryptocurrencies is comparatively lower than traditional (fiat) payment methods.
- No taxation
- Gaming license may not be required*
*As previously mentioned, a gaming license may not be required for crypto-only casinos. However, having a licensed establishment gives your casino operation credibility and ensures that you’re carrying out a fair, secure and responsible operation. Additionally, be advised that certain software providers may require licensing to operate in certain jurisdictions.
Beware of Cryptocurrency volatility
The advantages aside, it is important that you are aware that Bitcoin and other cryptocurrencies are notoriously known for being highly volatile. The price of cryptocurrencies depends on a variety of factors and can change in a short period of time, easily doubling in value or dropping to near zero.
How to Open a Crypto Casino
Starting a crypto casino is very similar to following the basic steps you would take if you were to launch a traditional gambling platform, be it on your own or with the help of a white label or turnkey solution provider. In other words, it is vital to analyze the market, devise a business plan and obtain a license.
With that said, as is also the case with launching and operating any casino online or via mobile, the software development is one of the most critical and complex parts of the process. For this reason, you need to make sure that you purchase casino software that will be fully secure and reliable. Unless you know how to build this software yourself, you should only choose trusted developers with experience in the iGaming industry, particularly those that specialize in crypto gambling and that provide integrated payment systems.
An example of what a reliable, high-quality provider of iGaming crypto software may offer includes (but is not necessarily limited to):
- A reliable casino with smooth operation that is hosted on a secured sever
- Crypto-friendly casino games across multiple channels (desktop, mobile and tablet)
- A strong back office with casino management and control tools
- High quality UX, including eye-catching interface and user-friendly front end with smooth navigation
- Major cryptocurrencies support with ready-to-use financial infrastructure that features integrated cryptocurrency systems that let users make deposits with bitcoins and other popular crypto payments
- Multicurrency support if having traditional popular and local payments is desired
- Tracking technology and anti-hacking programs to uncover suspicious activity and fully protect casino operation
- KYC system to ensure the safety of your platform
- Marketing tools for crypto and Bitcoin casino bonuses, promotions, tournaments, comp points and other gamification tools and strategies
- A strong CRM system to analyze player behavior and improve player retention
- Loyalty programs to keep crypto players engaged and interested in your casino and returning
- Knowledgeable customer support for customers as well as IT support for operators
- Affiliate system
- Appropriate license support
Unless you are highly skilled and experienced with online casino software for cryptocurrency, choosing a knowledgeable company to help you incorporate crypto payments into your gambling operations is a must.
Costs of Running a Crypto Casino
The costs of running a cryptocurrency online casino depends on the software you employ, the types of products and services you would like to include, and from whom you obtain this software.
To obtain a solid idea of the price of crypto casino development, get in touch with the company that you are considering to help you run your casino operation and ask them to give you a quote based on your requirements and what they offer.
Crypto Casino Tips – What to Remember
Here are a few final tips that you may find of value while you consider your options as a crypto casino operator:
- Obtain the help of experienced professionals – Do not rely on just any type of casino software. Make sure that the software you use is of high-quality, is well developed and guarantees a safe and smooth operation.
- Offer a variety of payments – You can operate a casino that deals only in cryptocurrencies, however, this will restrict you to a niche market and limit the number of players you will attract to your gambling operation.
- Bitcoin is volatile – Remember, cryptocurrency is known for its high volatility. Carefully consider if the risks associated with this form of payment fits in well with your business goals.
Bitcoin Casino – Final Thoughts
Running a crypto casino may make excellent business sense if you’re seeking to launch an online gambling operation that attracts a diverse range of players. That said, including Bitcoin or any other type of cryptocurrency into your mix of payments takes the right software, security measures and protocols.
Learn more about Bitcoin casinos as well as white label and turnkey solutions in TCS reviews. Discover how the many different and top iGaming software providers in the industry can help you bring your business goals to fruition, help you incorporate crypto payments into your offering, and support your efforts toward success.