Crypto Casinos 101: Opportunities, Benefits, Risks, and Growth in Blockchain iGaming

Blockchain Implementation in the iGaming Industry

Jean-Michel brings years of experience in blockchain, cyber security, and fintech. He has been attracted to Bitcoin since 2011 after reading the whitepaper. In the LinkedIn Live video, which can be watched on Revpanda’s YouTube Channel, Faruk begins the discussion by mentioning how “blockchain technology has been making some waves across various industries,” including the fintech space and the iGaming industry. His first question focuses on the adoption of blockchain technology in iGaming and its benefits for brands and players.

According to Jean-Michel, “the ideal path hasn’t yet been identified” as far as blockchain implementation in the iGaming sector is concerned. The way cryptocurrencies are being adopted varies greatly because everyone uses a different approach. For instance, traditional casinos tend to use crypto as an additional payment option besides fiat currency. This approach does not have a significant impact on their everyday operations.

From the user’s perspective, Jean-Michel thinks that “the real paradigm starts to shift” when some online casinos do not natively support fiat currency for payments. However, the change may not have a notable effect because players can still purchase Bitcoin and other cryptocurrencies with bank cards.

Risks and Benefits for Operators and Players

Citing the ICO boom and rug pulls in NFTs, Jean-Michel acknowledges that the blockchain and cryptos pose several challenges. Faruk also argues that human greed is part of the problem, contributing to the risks associated with using the blockchain technology in the iGaming scene.

Although fraud is a major concern, Jean-Michel believes that operators can capitalise on robust KYC processes, tie incentives such as welcome bonuses for new players back to the user, and use cryptography to prevent bonus abuse. In addition, using RNG validators to prove game outcomes and showing the code for audits may also help to build trust. For him, honest operators will share links to their smart contracts and RNGs. This will allow the average person who does not understand complex codes to get the necessary proof of fairness.

Although some people are sceptical, Faruk strongly believes that “blockchain technology brings trust” to the iGaming landscape. It’s open for everyone, allowing operators to go global and even facilitate borderless payments. Another benefit noted by Jean-Michel is the fact that there are no chargebacks when using cryptocurrency. Additionally, users can form communities and integrate popular cards such as Visa and Mastercard. Moreover, users will be able to use wallets to log into their gaming accounts without sharing sensitive details.

Crypto Casinos vs. Traditional Casinos

The rise of crypto online casinos can be attributed to several factors discussed by Jean-Michel and Faruk during the Live session. Responding to Faruk’s question about the difference between land-based and crypto casinos, Jean-Michel asserts that traditional casinos can run entirely on fiat currency while crypto casinos can solely depend on cryptocurrencies. However, there’s no blueprint for blockchain-powered casinos, and the degree of decentralisation varies. Moreover, most owners wish to stay anonymous in terms of identity and operations.

Another important point raised by Jean-Michel is that traditional casinos have clear regulations whereby each country employs its own regulatory framework. For crypto casinos, he explains, “everyone’s forging their own path and trying to figure out what the best way is to do it” and build trust. He references casinos that provide proof of reserves to show VIP players who place huge bets that the jackpot prize is real.

The Biggest Challenge for Crypto Casino Operators

Eager to know the problems crypto casinos face, Faruk asks Jean-Michel about the biggest challenge for these gambling platforms. “I think the biggest challenge is finding the right person to guide them,” Jean-Michel answers. The problem is that most crypto casino operators come from the traditional gambling industry.

With that in mind, marketing to a traditional gambler is not the same as marketing to crypto users. Moreover, casino bonuses for new players work differently, and it’s difficult to differentiate between scammers and serious people who know how the blockchain works. For Jean-Michel, blockchain is “a really complex, boring subject for most people.” Therefore, it is advisable to conduct extensive research on the team members, contributors, and third suppliers.

Despite the challenges associated with the adoption of crypto casinos, Faruk is pleased with governments that have started to invest in and embrace Bitcoin.

Crypto Casinos in 2024: Key Trends and Insights This Year

Faruk expresses his fascination with how the younger generation is particularly interested in crypto casinos and the newest advancements in technology. He also likes the fact that more streamers and influencers have emerged in recent years to promote crypto casinos. A notable increase in the number of people who search “what is blockchain” on Google and ask ChatGPT questions about the subject is also a noteworthy trend.

2025 and Beyond: Expert Predictions on the Future of Blockchain in iGaming

Focusing on the future of iGaming, Faruk and Jean-Michel highlight trends and innovations that will impact the industry several years down the line. Jean-Michel has no doubt that the “rise of the wallet” will have a significant impact on the ecosystem. Players will enjoy exclusive benefits and gain more trust for operators. Moreover, affiliates will be attracted to crypto casinos because their payments are guaranteed.

Describing the blockchain as a triple entry accounting system, Jean-Michel explains how a tracking link powered by a smart contract can help process payouts with low transaction costs. As the traditional payment industry continues to align with cryptocurrency, “I think a lot of traditional gaming traffic will move to crypto,” Jean-Michel asserts. Additionally, operators with the right intentions are more likely to thrive and have a large market share in the future.

Faruk also supports the idea of using smart contracts in the industry, saying that, as people start talking about it, the number of cryptos and crypto casinos will increase.

Regarding potential markets for crypto operators, Jean-Michel describes the US as “a sleeping giant” and an interesting market. Faruk expects to see significant changes after the 2024 elections, including friendly regulations for crypto casinos.

Tips for Investing in a Crypto Casino

Answering a question from one of Revpanda’s social media followers, Jean-Michel advises entrepreneurs in the crypto casino industry to “choose the right support” and be aware of the benefits cryptocurrencies bring to businesses. For traditional and crypto casino operators, Faruk recommends extensive market research to understand the dynamics. The seasoned iGaming experts at Revpanda can also help you attract and retain loyal players.