As bitcoin hit the scene and the online gaming market realized its potential, there has been a steady flow of momentum.
Bitcoin is a decentralized system that is not beholden to traditional banking rules and regulations. The underlying technology allows for anonymous accounts and provides the foundation for worldwide growth in the gaming industry.
For gamblers and casinos alike, trust is a dominant factor in the market. Bitcoin allows anonymous accounts, but secure and transparent transactions. Players can virtually fund accounts in minutes and cash out in a similar fashion. The casino operators have a secure platform and trusted way to offer games of skill and chance in the online environment.
The foundation for exponential growth is set in the bitcoin technology and the gaming and gambling market simply took advantage of a market opportunity.
There is more to offer than online dice games and slot machines. Bitcoin transactions are transparent, so players can validate that games of chance are not unfairly manipulated.
Bitcoin Enhances Sports Betting
Across the world, betting on sports has an impressive history and huge market opportunity. For example, in the United States alone, the March Madness college basketball tournament generates close to $10 billion in bets every year.
Casino and sportsbook operators offer bitcoin betting exchanges to offer more games to players. Unlike traditional sports betting (where the house places the odds and the players must take the odds or not play) bitcoin betting exchanges offer players a chance to play both sides.
The betting exchanges work by supplying a venue for the action of players, who are able to place odds themselves or accept the odds of another player.
Players can bet against each other and not only the house. The exchange allows anyone to find some action as the house and offer odds (layer) or back any bets (backer). Both layers and backers can choose the odds they prefer, or create their own and allow other players to accept them if they wish.
Bitcoin exchanges leverage technology and reduced overhead. Exchanges typically offer rates around 2%, while the industry standard take rate is generally between 5% to 16%.
Bitcoin Transforms Online Poker
Poker has been a staple of the internet since mass adoption began in the late ‘90s. In 2015, there were over 50 million different online poker players to participate in real money games around the world.
In the mid 2000s, regulators around the globe passed rules to restrict banks from facilitating transactions associated with online pokers sites. As a result, the amount of players drastically dropped. For those players that wanted to find action, then it was increasingly difficult to deposit and withdraw funds.
Bitcoin allows many mainstream online poker sites to accept deposits and withdrawals. The emergence of a digital currency that is not tied to the traditional banking rules and regulations has transformed the online poker market and contributed towards exponential growth in bitcoin gambling.