Bitcoin
Deciphering the Mysteries of Bitcoin and DarkWeb Gambling
Most people don’t pay much mind to crypto gambling, unless they are players themselves. However, crypto gambling is a significant part of the cryptocurrency market. For example, in 2018 Bitcoin casinos were responsible for approximately 50% of all BTC transactions. So let’s look past the surface and dive a little deeper. Here’s what you should know about Bitcoin gambling on the surface web and the deep web.
Simply put, crypto casinos are casinos where players can top up their wallets, hold accounts and pay out their winnings in some form of cryptocurrency. Casino Guru, which has the largest up-to-date database of online casinos, additionally defines two varieties of crypto casinos. The first variety could be considered a “standard” crypto casino, is basically the same as any other online casino, but allows players to make deposits, play, and/or cash out in cryptocurrencies.
It requires identity verification, a standard feature of the online gambling industry. But there are also so-called “anonymous” casinos, which require no identity confirmation at all, only an e-mail, username, password and a crypto wallet. The Casino Guru database contains 161 casinos that can be classified as crypto casinos, but only 32 anonymous casinos.
Why has crypto gambling gained so much traction? To understand the answer to that question, we need to have a quick look at some of the legislation concerned with online gambling in general. Online gambling is very strictly regulated or outright banned in many countries. For example, there are only three states in the entirety of the USA, where online casinos are allowed operation. The Unlawful Illegal Gambling Enforcement Act (UIGEA) of 2006 forbids online wagering. But it has a loophole. It only specifies wagering in fiat.
And it’s not just America, that has a hole in their legislation in terms of crypto gambling. In truth, there are only 7 countries in the entire world which have a semblance of crypto gambling regulation. Namely, these are: the UK, Italy, Netherlands, Greece, Poland, Belgium and Japan, which is currently considering legislative solutions.
Coming back to the two varieties of crypto casinos mentioned earlier, anonymous casinos actually can’t get a license anywhere at the moment, even if they wanted to. The way they operate just doesn’t match the requirements of any reputable online gambling licensing authority.
For the majority of the world, bitcoin and other crypto are casinos in a legal grey area – not technically legal, but not illegal either. So, players that couldn’t scratch their gambling itch otherwise suddenly found themselves with a solution. A solution that allows them play anonymously (in some cases), from the comfort of their home and offers them an incredibly wide variety of games to choose from.
Though it is true that countries can still bar their citizens’ access to certain sites, like these crypto gambling sites specifically, this has done nothing to stop determined players. In the past, gamblers needed to download the TOR browser (abbr. The Onion Router), which granted them access past the constraints of surface web browsers and into the deep net. There, Hidden Wikis, which are sites aggregating links to various parts of the deep net linked to a crypto casino of their choosing and their game began. The benefit of this being that the combination of TOR and cryptocurrencies made them virtually untraceable by their own governments.
But there is a reason to why there are so many horror stories about the deep web. The deep web harbors numerous fraudsters and scam artists, which we’ll get into in a second. But thankfully, the advent and popularization of VPNs (abbr. Virtual Private Networks) has enabled players to enjoy safer experiences on the surface web. Crypto casinos operating on the surface web often publicize parts of the code they run on to boost trust with their customer base and avoid the negative reputation deep web crypto casinos have garnered.
As you can imagine, there’s a big “BUT” to everything we’ve told you so far. Be honest, you saw it coming from a mile away. So, what’re the issues with crypto gambling?
1) Crypto gambling can be fraught with crime. Especially so on the deep web, but you can run into scams and unfair practices even on the surface web. As the Routine Activities Theory of crime states, crime occurs whenever a suitable victim, a lack of capable guardian and a motivated criminal come together in one place. And when you have people willing to risk their hard-earned crypto on gambling, in an environment with limited or no law enforcement, you’ll find plenty of people more than willing to rid these players of their BTC.
The most popular crypto gambling scams across the web are:
- Ponzi schemes
- Deposit scams
- Fixed games
- Deposit syndicates
On top of that, money laundering is also a quite common occurrence in the crypto gambling sphere. But it’s not just the players who are at risk. Even the casino itself can become a victim to hackers, which would love nothing more than to empty out the casino’s crypto wallet.
2) Crypto gambling can be even more addicting than traditional gambling. Problem gambling, also known as gambling addiction, is an issue that the entire gambling industry at large has to face. However, though traditional casinos and betting can be addictive, online gambling even more so, crypto gambling poses the biggest risk to unsuspecting gamblers.
Crypto casinos operating on the fringe of the law can titillate potential customers with very aggressive advertising and marketing tactics, making them offers on bonuses and benefits, which no other casino can. That’s due to the fact that unlicensed casinos do not have to pay the standard fees that come with gambling operations, like tax, licensing fees, etc.
Then, once the player is drawn in, they get hit with the promise of fast payouts, quick game results and nearly limitless bet heights. Some illegal BTC casinos take full advantage of their position and completely disregard the recommended responsible gambling practices. After all, the more players you hook, the more money you make.
Then, there’s the simultaneous benefit and downside of anonymity. Since anonymous crypto casinos don’t require any form of identity confirmation, they’re easily accessible even to people who have no business being there. That goes for self-excluded players, as well as underage gamblers, who are especially vulnerable to gambling addiction.
In closing, though the siren call of crypto casinos may be tempting, be aware of the dangers that you might face by choosing to chase those sweet crypto winnings. Though there always is a risk factor in gambling, but playing in unlicensed casinos may make the risk greater than it is worth.
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Stake Colombia Partners with NetRefer for its Casino and Sportsbook Affiliate Marketing Platform
Stake Colombia, the Latin America division of Stake, has entrusted its Casino and Sportsbook brands to NetRefer’s Affiliate Marketing Platform.
Colombia serves as Stake’s operational base for expansion throughout Latin America. Their influence in the booming LatAm iGaming market began in 2023, through the strategic acquisition of Betfair Colombia and its license. “Expanding into the Colombian market is a strategic decision that aligns perfectly with our vision for growth and innovation,” said Brais Pena, Chief Strategy Officer at Stake.
This vision underscores Stake’s commitment to establish itself as a key player within Colombia’s market, increasing the assertion of the nation’s status as a home for innovative foreign investments.
Stake has multiple high-profile sponsorships, and missing the iGaming giant is almost impossible. It sponsors the likes of Everton FC, the UFC Franchise, and now in 2024, they announced their biggest move to date: their very own Stake F1 Team. The company’s redefining of brand partnerships also includes a deal with Megastar rapper Drake. Now, with the establishment of Stake Colombia, the company is accelerating its massive influence in the LatAm market.
In iGaming, it takes more than high-profile sponsorships to get to the top and stay there. To win that battle, Stake Colombia has an armada of popular Casino Games, Slots, Live Casino, Blackjack, and Drake’s favourite, Roulette, to accompany its extensive Sportsbook and keep the iGaming business skyrocketing to success. Apart from providing their customers with world-class games, how-to guides, and display boards promoting the best paying-out games, their easy-to-use platform allows players to place bets on various sporting events with minimal clicks and effort.
Stake works hard to maintain its dedication to fair play, legal operation, and transparency. This is demonstrated in their verified status with the Crypto Gambling Foundation and projects to promote responsible gambling. Their status as a ‘Crypto Casino’ is backed by all the cryptocurrency giants, such as Bitcoin, Ethereum, and Dogecoin, to name a few, in the jurisdictions in which this payment method is allowed.
Also noteworthy is the company’s commitment to security. State-of-the-art encryption methods and 24/7 customer support come as standard with Stake Colombia. Their priority to maintain player satisfaction is achieved through unique reward programs and campaigns, including their superb betting events with the rapping legend Drake, enhancing a better gambling experience and contributing to overall affiliate commission earnings.
Being a Stake.com.co Affiliate means earning commission for all bets placed on its Casino and Sportsbook, which, unlike traditional affiliate programs, means earning money even if players win. This ability to go above and beyond industry practices in various sectors has surely paid dividends to Stake’s rise to power.
Stake Colombia has partnered with NetRefer as their Affiliate Marketing Platform provider with Casino and Sportsbook brands. NetRefer expresses its delight to have such a renowned market leader join their client portfolio and become part of their journey to continued success.
Become a Stake Affiliate: https://stake.com.co/es/afiliados-resumen
Learn more about NetRefer: https://netrefer.com/
In March 2024, Bitcoin soared to a historical high, nearing 70,000 euro per coin. How does this impact the iGaming market? Being a tech company with over 15 years of experience and an innovator in crypto iGaming software development, SOFTSWISS shares anticipations in its quarterly crypto analysis.
Over 220 brands powered by the company engaged in crypto transactions during the first quarter of 2024, which is 12% higher than the previous quarter. SOFTSWISS experts analyse the data gathered from crypto-friendly brands by employing extrapolation, comparative, and correlative analysis.
iGaming Market Overview: Unveiling Anticipated Growth
The size of the global online gambling and sports betting industry is expected to rise significantly and exceed 170 billion euro by 2032, according to Statista. Based on SOFTSWISS data, the iGaming market has demonstrated a stable pattern of growth year after year.
In absolute terms in euro, the Total Bet Sum grew by 5.8% in the first quarter of the year compared to the last quarter of 2023. Analysing the year-on-year increase, comparing Q1’24 with Q1’23, the growth is more impressive, showcasing a 47.2% boost.
Simultaneously, the Total Bet Count, both fiat and crypto, displayed a slightly larger gain in the first quarter of 2024 compared to the previous quarter, surpassing 6.1%. The indicator’s year-on-year boost is much more notable, revealing a 57.2% increase.
The popularity of iGaming in recent years has been fuelled by its global reach and accessibility due to constant technological advancements. On one hand, the quality of internet connectivity continues to rise, while on the other, new payment methods are emerging, simplifying payment procedures.
The in-depth quarterly analysis, ongoing since the beginning of 2022, reveals that fiat bets are undergoing more substantial growth compared to crypto bets. In Q1’24, the Fiat Bet Sum increased by 6.9% compared to Q4’23, while the rise of Crypto Bet Sum was at 2.4%.
The more active growth of fiat bets led to a slight decrease in the share of crypto. In the first quarter of 2024, the crypto share in the Total Bets Sum settled at 24.4%, decreasing by 0.8 percentage points (p.p) compared to the last quarter of 2023.
What is the State of Crypto in iGaming?
Analysing crypto bets, it is crucial to highlight that almost 93% of them are facilitated through the in-game currency conversion tool, which is gaining traction. This mechanism allows operators to engage players with cryptocurrency assets in games initially tailored for fiat only. Operators that adopt such options are gaining more competitive advantages in the market.
While the Q1’2024 Crypto Bet Sum shows a moderate 2.4% growth compared to the previous quarter, the year-on-year analysis demonstrates a 20.8% increase. The Crypto Bet Count remained unchanged in Q1’24 compared to the previous quarter’s indicator. Simultaneously, the metric increased by 21.3% year-on-year. The figures speak volumes, showcasing a consistent interest among players in crypto gaming.
“The lack of a substantial increase in the number of crypto bets during Q1’24 can be partly attributed to the significant rise of the Bitcoin exchange rate during this period, leading players to be more cautious with their crypto bets. This trend mirrors the situation in the first quarter of the previous year when the Bitcoin exchange rate surged following a decline at the end of 2022,” comments Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.
What Distinguishes the Average Crypto Bet?
The average crypto bet increased to 1.71 euro in the first quarter of the year from 1.66 euro in the last quarter of 2023. This growth correlates with a significant strengthening of the Bitcoin rate during the first quarter of 2024.
The average fiat bet remained steady at around 0.81 euro in Q1’24 and Q4’23. The average total bet stayed constant since the second half of the previous year and is equal to 0.93 euro.
Notably, the average crypto bet is double that of fiat. This indicates that digital currencies are preferred by higher-income players.
Why Did Bitcoin’s Share Drop?
The Top Five most operated digital coins in iGaming have remained stable during the last two years with minor changes in ranking order. The top still includes Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.
In Q1 2024, Bitcoin experienced a significant decline of 9.4 p.p. compared to Q4 2023. This could be attributed to the bolstering Bitcoin exchange rate and players exercising a more cautious approach towards it.
In contrast, the shares of other digital coins have increased. Ethereum and Litecoin showed growth of 4.0 p.p. and 3.8 p.p., respectively, during the same period. Simultaneously, Dogecoin rose to fourth place in the ranking, leaving Tether behind.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarises: “The benefits of employing digital currencies, such as fast transactions and anonymity, still attract many players. Embracing cryptocurrencies in iGaming can boost operator profits despite their volatile nature.
As the Bitcoin rate is expected to strengthen after the Bitcoin Halving, the average crypto bet and projected gains may see a notable impact. During such promising times, it is crucial to have reliable and experienced partners to navigate the path to success.”
About SOFTSWISS
SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform, and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.
The post Navigating Bitcoin’s Impact: SOFTSWISS’ iGaming Industry Overview appeared first on European Gaming Industry News.
In its LinkedIn newsletter, ‘The SOFTSWISS Special’, SOFTSWISS, a global tech expert with over 15 years of experience in iGaming, delves into the impact of Bitcoin Halving on the iGaming realm.
The recent historical moment of Bitcoin Halving took place on 19th April 2024. SOFTSWISS, a pioneer in crypto-friendly iGaming software, shares its insights and forecasts for how this event may shape the future of iGaming, shedding light on potential opportunities and challenges for industry stakeholders.
What is Bitcoin Halving?
The Bitcoin halving is a scheduled event that occurs approximately every four years or every 210,000 blocks. During this event, the reward for mining and verifying new blocks is reduced by 50%, resulting in miners earning only half the number of BTC per mined block.
Since its launch in 2009, Bitcoin’s mining reward has halved four times, occurring in 2012, 2016, 2020, and 2024. The recent April halving reduced the reward to 3.125 BTC per block. Such events are crucial for Bitcoin’s scarcity and inflation control, ensuring that the total supply never exceeds 21 million coins and aligning with its deflationary principles.
Historically, each halving event has resulted in a rise in Bitcoin’s price. This is attributed to the reduced supply and increased scarcity, although other market factors have also influenced these outcomes.
Exploring the Impact of Bitcoin Halving on the iGaming Industry
To provide an in-depth analysis of the Bitcoin Halving impact on iGaming, SOFTSWISS invited Bradley Peak, blockchain expert and tokenomics adviser, to share its anticipations.
- Bets rise: The halving is expected to lead to an increase in Bitcoin’s value. If the trend of impressive price surges persists, Bitcoin-friendly iGaming brands could see a positive impact.
- Crypto adoption increase: Implementing crypto-friendly models has the potential to boost player trust and transparency in iGaming. Additionally, it could rejuvenate unique gaming experiences like provably fair games and decentralised casinos.
- Regulatory frameworks improvement: The recent Bitcoin halving could prompt regulatory bodies to reassess their stance on cryptocurrency gambling. This could lead to new regulations ensuring fairness, responsible gambling, and anti-money laundering measures in the crypto-driven iGaming sector.
Bradley Peak, blockchain expert, comments on the recent changes: “Any transformation will not be without its challenges. It is important to adapt – invest in employee learning and development, onboard crypto processing, and make sure your platform remains secure in the process.”
Explore the influence of the 2024 Bitcoin Halving on the iGaming industry in the fourth edition of The SOFTSWISS Special newsletter on LinkedIn.
About SOFTSWISS
SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.
The post Should iGaming Be Worried About 2024 Bitcoin Halving? appeared first on European Gaming Industry News.
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