We are in the heart of the digital currency age and cryptocurrency particularly has rapidly spread across the world in the last decade. In Canada, the year 2020 marked an explosion in digital assets like never before. This has been very much encouraged by the country’s favourable regulatory regime and industrial flexibility. Indeed, cryptos and blockchain technology have found their way to various sectors such as health, education, energy, and even online entertainment. Today, online casinos constitute a major field of application of cryptocurrency with an estimated annual revenue generation of about $1.2 billion.
Cryptocurrency and Online Gambling: An Overview
In the early days of virtual gaming, games were not as accessible to everyone as they are now. Over the years, the industry has grown to include games that could be purchased and played at will. Also, gaming software is now provided on dedicated platforms where players from almost anywhere are welcomed. These steps have also been a push factor for casino operators who saw an opportunity to get more coverage through the provision of online casinos in Canada. From being able to pay for game assets using fiat currency, players can do the same using cryptocurrencies like Bitcoin, Ethereum, Tether, and XRP.
These cryptos are just one of the numerous applications of blockchain which is a technology released in 2009 through the launch of Bitcoin. This is a new generation open-source technology through which decentralized and independent systems can be created to manage and transact assets. Online casino software providers have drawn inspiration from it to come up with crypto or blockchain games through which players can purchase and trade in-game items. This has gone a long way to offer gamers a more complex gaming experience while enabling software developers to earn a fee on every crypto transaction made.
NFTs or games with non-fungible tokens and cryptocurrencies make it possible for online casino players to get into a play-to-earn rewards system. Through this, providers can minimize the initial cost required to play such games and at the same time, make it possible for users to earn something in return. Assets obtained through NFTs belong to the player and are usually included in their crypto wallet. Apart from the financial part of it, involving crypto in the online gaming world plays the role of reducing the boundaries that exist between virtual and real life. Furthermore, online gamers enjoy a relatively higher security level compared to gaming via fiat currency - even via mobile casinos.
Current Landscape of Cryptocurrency Adoption in Canadian Online Casinos
In some way, Canada’s dominance in crypto innovation is linked to the fact that Toronto is home to the inventor of the Ethereum blockchain, Vitalik Buterin. This second-generation blockchain enables online gaming platforms to exploit decentralized applications to record gaming assets and transactions. As earlier mentioned, Canadas’s regulations have contributed to rendering the adoption of this technology easy. Although gambling remains prohibited in most parts of the country, Canadians can access offshore gaming sites for real money gaming.
Bitcoin and other cryptocurrencies have broken into the online casino world, however, there’s still a long way to go. A random pick of 10 casino sites would likely reveal only about two or three casinos that accept cryptos. These are solely “play for real money online casinos” where gamers can deposit and withdraw via a pre-determined number of crypto wallets. As expected, every crypto casino has Bitcoin which is always the main currency for bonuses and other forms of promos. Ethereum and Tether are equally quite common and are sometimes included in casino promos. In addition to these, online casinos also accept Bitcoin Cash, Litecoin, USDT, and Ripple.
Benefits of Cryptocurrency Adoption in Online Casinos
Considering how fast cryptocurrency has integrated the best online casinos, it definitely brings something big to the table. With fiat currency, players sometimes had no other option than to succumb to processing fees of up to 3% and above. This has considerably reduced with the introduction of cryptos whereby very low or no fees at all generally apply. On the side of casino operators, operational costs are also reduced since no third-party processors are involved.
Security and privacy are paramount issues that have always prevented many players from putting in their money at fiat currency casinos. Cryptos significantly offer more safety as there is no need for intermediary services like financial institutions and which are easy targets for cyber-attackers. Blockchain is a self-dependent technology that ensures that transactions are encrypted and saved in its system making it almost impossible for unauthorized persons to have access. Plus, with cryptocurrency, users are anonymous and no personal information is revealed at any point in time.
Player experience has also been greatly enhanced with the introduction of cryptocurrency into the online casino business. Gone are the days when players were forced to wait for days to have casino payments completed. Both depositing and withdrawing via crypto are fast thereby improving the overall player experience. Moreover, with cryptocurrencies being globally accessible, players from anywhere can play online games regardless of local financial regulatory restrictions. Plus, cryptos can provide gamers with a sense of control over their funds.
Price volatility is a major characteristic of BTC, ETH, XRP, LTC, and other similar currencies. Although this can be a source of risk when the price drops, the reverse is true when the value of a crypto increases. Players using cryptocurrency can have their money increase in worth thanks to volatility, however, precaution must never be under-minded.
Challenges and Considerations for Cryptocurrency Adoption in Online Casinos
Taking up from where we stopped in the previous section, online casinos and gamers stand to lose big each time cryptocurrency prices begin to drop drastically. The unpredictability involved calls on the proper management of funds to minimize eventual negative price volatility.
Regulatory-wise, there is yet to be a well-structured framework defining and governing the use of cryptocurrency. For online casinos, a major problem lies in the fact that it is difficult to implement AML and KYC procedures on players that use crypto. This also hurts efforts destined towards the promotion of responsible gambling.
In addition to the above, the complexity of blockchain makes it no easier for online gaming sites to include cryptocurrency among their accepted payment methods. It takes a certain level of expertise to integrate it and knowledge to use it. In other words, limited resources and technical know-how have been some of the major barriers so far.
Case Studies: Successful Cryptocurrency Adoption in Canadian Online Casinos
Since online casino actors realized how valuable cryptos could be, many casinos have integrated cryptocurrency into their platforms.
- Igu Casino is one of the new online casinos that has been successful in doing so. Here, games are available after a minimum deposit of $20, 0.8 mBTC, 0.012 ETH, or 20 USDT. One of the major strategies that has proven effective in attracting crypto gamers is the provision of deposit bonuses. Indeed, when players join the casino for the very first time, they can get up to $550 or up to 0.812 BTC over their first three minimum deposits. The casino’s frequent tournaments, VIP program, and other promos have also contributed to its popularity across and beyond Canadian borders.
- Bitstarz Casino is another gaming site where millions of gamers partake in real money gaming using cryptocurrency. The casino’s major pull factor is the availability of over 3,500 different games among which are crypto games. In addition, at Bitstarz, players can be awarded an amazing welcome bonus of up to 5 BTC. A deposit of at least $20 is required and if a player decides to deposit up to 40 CAD, 180 spins are given alongside – sometimes referred to as online casinos free spins. This bonus is spread over the first four minimum deposits. Overall, Bitstarz is proud to be home to over 3.4 million players and holds a 4.5/5 rating from more than 35,000 reviews.
Future Outlook: The Potential of Cryptocurrency Adoption in Online Casinos
For the longest time now, cryptocurrency and its related possibilities have been considered a gamble. Guess what, that makes crypto and online gaming a perfect fit if we can say so. As more crypto-related opportunities are identified and gaming sites gain crypto-use maturity, it’s expected that more competition paves the way to even better services for players. More than two-thirds of existing financial service providers are on the way to developing strategies that can enable them to secure a spot in the cryptocurrency market. On the other hand, casinos are aware of the potential that represents gamers that solely use cryptocurrency, which is why in the near future, more crypto casinos are expected to be operational online.
Also, as NFTs are proving to be worth the investment, it shouldn’t take long for players to have more than just gaming at online casinos. Indeed, with this kind of game, it is possible to purchase and trade in-game products in a similar way to what gamers do with Skins in Fortnite.
Final Thoughts
Bank cards, direct bank transfers, and even electronic wallets were the main payment services used at online gaming sites until blockchain technology introduced cryptocurrency. One of the major benefits of cryptocurrency has been the cutdown on processing time and fees for casino payments. There have also been significant improvements in the level of security offered plus an increase in online casino bonus offers. As we look forward to the future of Bitcoin and other cryptos, we can also expect a more regulated regime for the use of crypto in Canada. For more information about online casino regulations in Canada, visit this website.