People love to gamble. Sure, not all of them, but most of us enjoy gambling from time to time, to test our luck or just to have fun. But there is a problem. Most of the regulatory bodies demand that they know and understand who their players are, as per the KYC (Know your customer) protocol.
These regulations cause real casinos in countries with stricter gambling laws, like the USA, to perceive Bitcoin as an entirely intangible way of accepting deposits into their accounts. It would be a logistical nightmare, to potentially have people they don’t recognize, walking around the casino, making bets, even winnings. Let alone the horror if one of these individual causes trouble.
These statements above are the thoughts of a casino manager. He needs to create a process that will satisfy the law, won’t cost as much and will not bore customers. The usual way first-time customers are handled is through a short registration period, where the casino acquires the client’s information, before allowing entry.
This registration is natural and completely understandable, as they have a lot of assets to protect and must hold somebody accountable if anything goes wrong. They also have to deal with a massive regulatory burden most of the time. It takes a lot of paperwork to run a casino.
What we know
Bitcoin is perfect for gambling. Not only does it allow the implementation of Provably Fair Algorithms, which physical casinos have a lack of, but they also allow gaming activities to override conventional societal structures, such as tax. Winning players more often than not, simply don’t pay taxes on their winnings. Depending on the laws of your country this may, or may not be legal, but what is necessary to realize is that nobody is going to ask you to pay taxes for winning Bitcoin online.
What we expect
In the future, Bitcoin will surely have a place in real casinos. One could simply walk into the venue and deposit directly into a machine using a QR code. The transactions if approved by the network, will be accepted instantly, with 0 block confirmations. Depositing and Withdrawing would be a breeze. But this all depends on the level of rigorousness that regulatory systems would like to incorporate into gambling activities with cryptocurrency.
If they are extremely strict, we expect the process to involve a card, similar to a debit or credit card; the casino would issue that. On this card, you can deposit your Bitcoin, and any profits you make would be taxed automatically upon withdrawing.
What casinos think right now
Right now, land-based casinos around the world, and especially in the USA are not that concerned with the introduction of cryptocurrency in their structure. CoinDesk contacted one of the heads of the Nevada Gaming Control Board. They only stated that customers do not express enough interest in using Bitcoin, and this means that it would not be justified to implement this currency as a real method of depositing.
Not all casinos think like this, especially in less strict jurisdictions where there is a certain freedom to undertake gambling activities.
What is important
Bitcoin Gambling has opened the way for new games and industry innovations to appear. We should be grateful for these products and services, typically appearing with just 1% house edge. The nominal advantage of land-based casinos is at least 10% if not more. It’s really difficult to know for sure, except with well-researched games, such as blackjack or roulette. But the slots or other automated forms of gambling are obscure and it is quite difficult to determine the house edge.
There are many different online gambling and betting options where you can use your Bitcoin effortlessly. While it would be interesting to use Bitcoin in a physical environment, online gambling is just as fun!