Online casinos and sports betting sites are popular all over the world, but most of them cannot boast of the trust of users. On such sites, for example, it is impossible to check the data on the solvency of an online casino, view statistics, or track whether the winnings have reached the winner. But, fortunately, all these problems are solved by cryptocurrencies and blockchain. Thanks to the solutions of the crypto market, any user can check the balance of the gambling platform, find out the rules of the gambling protocol, see if the conditions of referral programs are met and whether payments are made to the winners. We figured out how the crypto gambling market works, what advantages crypto casinos offer and how they differ from ordinary online platforms, as well as what are the prospects for this sector.
How the crypto gambling market works
Cryptocurrency gambling platforms basically operate in the same way as their traditional online counterparts. The main differences are only that:
- bets are made in cryptocurrencies
- blockchain allows transactions to be verified
- smart contracts are responsible for paying winnings
There are two main types of crypto gambling platforms: some work only with cryptocurrencies, while others accept bets in both cryptocurrencies and fiat currencies.
Most online casinos and gambling dApps operate on the Ethereum, TRON and EOS blockchains. The last two are more popular as they have lower fees and faster transactions. Among the accepted crypto assets, the most popular in online casino and sports betting sites are BTC, ETH, LTC, BCH, DOGE, USDT, TRX, EOS, DASH, XMR, XLM – find out more about this on bestcryptogamblingsites.info.
In addition to the two types of blockchain gambling platforms, there are two different categories of developers on the market:
- game developers – they create gambling games on the blockchain, which crypto-casinos and other blockchain platforms integrate into their services. For this, developers receive a percentage of each bet – an average of 5-15%. The biggest players in this sector are: Microgaming, Netent, Endorphina and Pragmatic Play;
- developers of blockchain platforms and website engines — they ensure the operation of gambling sites on the blockchain. Crypto casinos can create a blockchain module from scratch, but most often they use ready-made solutions. Developers of such solutions also charge a commission of 5-10%. The key players in this sector are Betconstruct, Casexe, Everymatrix, Softswiss and TruePlay.
It is the developers of blockchain platforms that largely determine what the crypto gambling sector looks like. Let’s consider the role of these participants in the crypto-gambling market using the example of TruePlay developer. It provides turnkey solutions for businesses and gambling providers based on the Ethereum blockchain. The company is also releasing a module called TrueSign to keep track of all transactions and stakes in blockchain casinos. At the same time, the honesty and reliability of the TruePlay smart contract was confirmed by the Hacken․io auditor.
At the same time, the company works only with those sites that conduct KYC / AML checks of users, that is, they request their personal and banking data. When registering in the TruePlay system, a wallet with a native TPLAY token is automatically created for users, which is used in the user loyalty program. TruePlay clients include the popular crypto casino Fairspin (formerly Fairplay).
Prospects for the crypto gambling market
According to forecasts, by 2025 the online gambling market will reach $97.69 billion, and the average annual growth rate until 2030 will be 11.7%. With the mass adoption of cryptocurrencies, the share of blockchain gambling in this sector will also grow.
According to sports betting software developer GammaStack, about 35% of all requests the company receives are for blockchain solutions. The company’s analysts note that blockchain-based mobile gambling applications are in the greatest demand.
Blockchain ensures the transparency of the work of gambling platforms: users can check the balance of the service, the honesty of the algorithm, and the frequency of payments. This makes the crypto gambling sector more attractive than simple gambling sites. However, the blockchain, despite the fact that it makes the game fair, does not guarantee victory. Therefore, do not play with money that you are not ready to lose.