Cryptocurrency has taken the world by storm in recent years, but not for good reasons. The underlying technology of cryptocurrency is changing the way we transact, invest, and spend. With that change, it’s no surprise that so many industries are being influenced.
Online gambling is one of the latest to be impacted by the blockchain and the digital currency revolution. From the way we play to the way we pay, digital currencies are changing the industry from the inside out. In this blog post, we’ll explore the ways cryptocurrency is influencing the future of online crypto gambling , and what it means for future growth of the industry.
The Rise Of Cryptocurrency Gambling
One of the first high-profile use cases of cryptocurrency in online gambling was in the online sports betting industry. In 2014, the online sportsbook “FanDuel” and the fantasy sports website “DraftKings” became the first to launch daily fantasy sports (DFS) products that allowed users to bet real cash on their DFS performances.
DFS is a rapidly growing industry with over 100 million registered users and a combined annual revenue of over $4 billion. However, there were significant regulatory hurdles to overcome in order to allow users to bet real cash on these contests. In 2016, these companies moved to a blockchain-based model that removed the need for third-party verification.
This opened the door to decentralized, blockchain-based betting sites where users could place real cash bets on the results of professional and collegiate sports contests. Both FanDuel and DraftKings have since shut down their blockchain-based betting products, citing regulatory concerns.
Another example of how cryptocurrency is influencing the future of online crypto gambling is in the online casino space. Since the early days of online gambling, casino operators have struggled to generate a profit — they are only able to earn a small amount of profit by charging players a fee on top of the house edge.
Blockchain Is The Future Of Gambling
Digital currency gambling isn’t the only way that cryptocurrency is influencing the future of online gambling. The blockchain is also being used to create new and innovative ways to play. One of the most exciting uses of blockchain technology in this space is in the development of decentralized or “app-based” casinos.
These types of casinos are creating their own apps that are often hosted on decentralized blockchain networks such as the Ethereum network. Users simply download the app, make a deposit into the casino, and play the games on the app. When they win, they receive a payout directly into their cryptocurrency wallet.
This eliminates the need for a third-party payment provider like credit card companies and banks. App-based casinos are a great example of how cryptocurrency is influencing the future of online gambling. With no need for a third-party payment provider, any app with cryptocurrency functionality will be able to offer the feature. This could result in a host of new casino apps we can’t even imagine now.