Bitcoin Acceptance in Online Gambling to be Expanded?

Updated: January 8, 2016

Bitcoin powered casinos and sportsbooks are very unlikely to return to real-money payments ever again, as there isn’t a single reason now for them to do so.

In 2015, there were at least two major branches of the virtual entertainment industry – Internet casino gaming and bets on sports – where Bitcoin did very well as a payment method. Conventional solutions like credit cards and wire transfers systems are still used by some gamblers, but they are well aware of all the drawbacks of the latter, including long transaction completion times and unreasonably high processing costs. We’re wondering here if the cryptocurrency is powerful enough to continue its rise, or its potential is in actual fact finite.

BTC offers numerous advantages and opportunities over real-money payments, so it’s quite easy to understand why online Bitcoin casinos rule the day. Unlike Bitcoins, all the ‘regular’ payment solutions like bank cards, wire transfers etc. we’ve got used to are state-controlled and regulated, with fees on all transactions, including deposits and withdrawals on gambling portals, imposed by operators. Bank transfers are even less favored in that sense, both for players and casino owners, as, apart from being too unprofitable in terms of accompanying costs, it also takes too long for third parties involved to process and complete the transactions, whereas gamblers are unlikely to be patiently waiting for their payouts for several days, or even longer.

Then, there is PayPal, a payment method initially schemed by its creators as the perfect blend of advantages of the widespread electronic solutions, which, ironically, now has a set of its own negative sides. First of all, PayPal is the only plastic card based electronic means of settlement that has shown itself as highly vulnerable to fraudulence. On top of it, it’s also subject to chargebacks and account blockings by security department, especially if a user’s transactions are in one or another way related to virtual casino games or betting on sportsbook portals, which have always been a kind of a no-no for PayPal.

With BTCs and Bitcoin casinos in particular, you may forget about all this. To begin with, transaction costs for BTC gambling portal customers are close to non-existent (forget the regular 3,5% rate you get on real real-money betting websites). Aside from it, Bitcoin funds are transferred from one’s wallet to the designated address (and vice versa) in less than a minute in most cases, which is mind-blowingly fast compared to what you get usually in traditional casinos and sportsbooks. Last, but not least, the Bitcoin system is completely free from possible chargebacks, which is, again, another reason why it is praised by players and online crypto gambling business operators.

There are lots of betting portals on the Internet these days, from the above mentioned Bitcoin casinos to poker rooms where Bitcoins are accepted as either the primary, i.e. the one and only, or the auxiliary currency. The more existing and potential gamblers learn about Bitcoin’s advantages, the wider its acceptance is, and the higher are chances the cryptocurrency payments will eventually become available on other virtual betting websites.

Likewise, bets on sports have always been one of the genuine passion for lots of people all around the world. Now that we have Internet, betting on your favorite sports events and athletes is widely available in online sportsbooks, although this is not the case in all countries, as virtual gambling entertainment is being heavily restricted in certain jurisdictions. Hence the necessity for all legally operating Internet sportsbooks to adopt Bitcoin and thus become open for the global community of bettors. The number of sports bets websites supporting payments in Bitcoin may still be too small to refer to it as a rapidly developing industry branch, but the situation is more than likely to change in the coming years, meaning sportsbooks clients and their operators may be expecting a local boom caused by BTC integration.