In the modern iGaming world, cryptocurrency has emerged as a highly demanded casino payment method. They have swiftly acquired popularity among operators, though they are a relatively novel concept. But what precisely means opening a crypto casino and what you should know about it will be discussed below.
Operators often wonder if it’s beneficial to run crypto casinos because of the uncertain predictions about the crypto market, which can be confusing for those in the business. Each country has its regulations, trends, and rules concerning crypto and we will present our comprehensive research about what is a crypto casino, how it works, and discuss the most reliable iGaming crypto payment providers.
What is a crypto casino?
Crypto casino is an online casino that allows players to complete financial transactions such as deposits, and withdrawals using cryptocurrencies. Bitcoin, USDT, Ethereum, and other compatible currencies can be utilized for online gambling purposes.
Crypto casinos operate similarly to traditional ones, allowing audiences to create accounts, deposit funds, and engage in games with the opportunity to win big rewards. However, the key distinction lies in the utilization of cryptocurrency as the primary form of payment method.
Another significant characteristic is enhanced security compared to conventional online casinos, achieved through the implementation of blockchain technology. This well–cultivated technology makes it exceedingly challenging for hackers to compromise player information or manipulate game outcomes. Additionally, crypto casinos often feature lower fees when compared to their traditional competitors, making them demanded by users seeking cost–effective gambling options.
Key facts about crypto casinos
Essentially, there are no particular rules governing Bitcoin gambling, it is neither explicitly accepted nor banned, just existing in a gray area.
- Changing behavior toward crypto in iGaming: The point of view of authorities towards Bitcoin is undergoing rapid modifications, with an increasing number of countries adopting positive behavior and having conversations about how to regulate digital currencies all powered by blockchain services.
- Strict rules and regulations: Regulators may impose enough severe measures against crypto gambling websites and individuals who gamble using digital money or in nations where gaming is forbidden, like the US.
- Stronger security: Platforms for playing games with Bitcoin give users the benefit of greater privacy. Nevertheless, trustworthy casinos frequently continue to request credentials in order to adhere to anti–money laundering (AML) and counter the financing of terrorism (CFT) regulations.
- Crypto casino licensing: Certain globally renowned jurisdictions, including Curacao eGaming grant licenses to companies that operate Bitcoin–powered casinos. Online casinos and sports betting websites can ensure compliance with the regulations of their chosen company location, enabling them to operate within a legally sanctioned structure and assume the role of overseeing digital currency transactions.
Top benefits of integrating crypto payment method in iGaming
The iGaming industry encounters numerous payment-related challenges, and cryptocurrencies present distinct attributes that effectively tackle these issues, rendering them an ideal choice for the iGaming sector.
- Heightened Security: An eminent advantage of employing cryptos in iGaming lies in their heightened security. Conventional payment mechanisms, like credit cards and bank transfers, remain susceptible to breaches by hackers and cybercriminals, imperiling the personal and financial data of players. In stark contrast, cryptocurrencies employ cutting-edge encryption techniques to safeguard withdrawals and deposits and preserve anonymity.
- Expeditious Transactions: Another boon of integrating cryptocurrencies into iGaming is their swifter transaction times. Traditional payment methods often necessitate several days to complete processing, resulting in inconvenient delays for deposits and withdrawals. Cryptocurrencies, on the other hand, offer nearly instantaneous transaction speeds, granting players prompt access to their funds.
- Reduced Fees: Traditional payment channels frequently burden users with high transaction fees, which can erode their winnings and discourage frequent financial transactions. Conversely, cryptocurrencies impose markedly lower transaction fees, rendering them a more lucrative option for both players and operators alike.
- Global Accessibility: Traditional payment methods may be hampered by geographical and regulatory constraints, limiting the accessibility of iGaming platforms to a global audience. Cryptocurrencies, being decentralized and less subject to regulatory restrictions, foster greater accessibility for players from diverse corners of the world.
- Anonymity: Digital currencies bestow a degree of anonymity that traditional payment means cannot replicate. While conventional methods mandate players to divulge personal and financial particulars, cryptocurrencies allow for discreet transactions, preserving player privacy and shielding their identity.
Comparing cryptocurrencies to traditional payment methods underscores the fact that cryptocurrencies offer a suite of distinctive advantages, making them an exceptionally well-suited choice for the iGaming industry.
How to start a cryptocurrency casino?
Starting your crypto casino presents a remarkable opportunity for iGaming operators to generate more profit streams and captivate a fresh scope of audience demographics. Let’s get into the essential steps you should be guided by:
- Acquire license – The initial step towards commencing a crypto casino involves securing a license from a valid commission. This step holds paramount significance as it gives trustworthiness and legitimacy to your establishment. Your casino will not have a professional background and can even be closed by regulatory authorities if it doesn’t have a license.
- Select a cryptocurrency – Following the licensing procedure, the subsequent stage encompasses selecting the currency you will include in your payment methods. There are not many currencies accepted in the iGaming world, but Bitcoin and Ethereum are frequently utilized. Nonetheless, it is crucial to acknowledge the crypto market itself is not stable at all, moreover, not all cryptocurrencies have an equal value. Prioritize thorough research to identify those with higher stability and substantial trading volume, ensuring optimal viability for your operations.
- Develop and secure the iGaming platform – It is imperative to construct your platform, which can be achieved through either custom development or the acquisition of a white–label solution. However, in this process, one must not overlook the significant aspect of security, particularly for an online enterprise such as a crypto casino. Guaranteeing reliable protection against fraudsters is vital. Incorporate security features like SSL encryption, or two–factor authentication.
- Incorporate Payment Methods – Integrating payment gateways that include support for renowned cryptocurrencies is a must. The smooth integration facilitates effortless transactions for users, boosting their overall experience. Opt for a more user–centric payment platform that can be simple, have lower commissions, and swift processing times.
Top crypto payment providers in iGaming
For operators seeking the finest iGaming crypto payment gateway providers, we have curated a comprehensive directory encompassing elite companies. Whether you are entering the iGaming world for the first time or possess seasoned expertise, this article serves as a dependable and valuable resource to assist you in identifying the ideal top crypto payment providers tailored to your specific requirements.
Based in Belfast, UK, Mifinity is a trustworthy payment gateway with a strong track record since its establishment in 2002. Offering support for 10+ cryptocurrencies and 15+ fiat currencies, it’s a versatile financial hub.
Mifinity’s partnerships with over 50 other providers ensure fast and cost-effective transactions. Compliance is a priority, with licenses from regulators like the FCA and Malta Financial Services Authority. Mifinity serves users worldwide, except in a few restricted jurisdictions.
Security is paramount, with regular audits, top-notch encryption, and strict authentication standards. KYC is mandatory, ensuring user accountability.
Innovation shines through eVouchers, allowing users to fund wallets securely. A robust referral program further incentivizes customers. Mifinity’s reliability makes it a top choice for crypto users from all walks of life, including students, travelers, traders, and bettors.
CoinPayments is a versatile multi-currency crypto wallet designed to cater to individuals and businesses. Its primary focus lies in facilitating online payments rather than serving solely as an investment-oriented wallet.
This iGaming payment provider brings its users a broad selection of more than 2,300 digital currencies and tokens, ensuring they have numerous choices for securely storing their cryptocurrency assets.
One of its core functionalities is enabling merchants, especially those operating in the e-commerce sector, to effortlessly integrate cryptocurrency payments into their platforms. This feature empowers online retailers to accept the cryptocurrencies as forms of payment and retain their earnings in cryptocurrency, expanding their payment horizons.
CoinPayments caters to security-conscious customers by bringing robust protective measures, including the option of implementing 2FA for added account security.
CoinPayments goes beyond just storage and payment acceptance; it allows users to purchase cryptocurrencies directly within the application using their linked bank cards. Furthermore, it offers a convenient conversion tool for seamless in-app crypto exchanges, ensuring users have easy access to the cryptocurrency of their choice.
Another iGaming payment provider, BitPay was founded in May 2011, initially emerging as an exclusive Bitcoin payment service provider. Today, it has ascended to become the leading global crypto payment solution. With its headquarters in Atlanta, USA, BitPay extends its crypto payment services to both the USA and the UK, and it holds a multitude of licenses to comply with various regulatory frameworks in different US states.
BitPay empowers users to engage in transactions involving over 15 cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and more. Moreover, it supports transactions in 8 fiat currencies. As a trailblazer in its field, BitPay is renowned for its user-centric website navigation and dependable assistance. The platform also offers exclusive blogs and comprehensive cryptocurrency guides to assist newcomers.
BitPay is highly esteemed for its robust security measures. It provides users with the option of enabling 2FA and employs SSL encryption to enhance the security of user data.
Furthermore, BitPay grants users the flexibility to tailor payouts to their needs, facilitating settlements for mobile point-of-sale checkouts, establishing recurring billing arrangements, and generating invoices. This adaptability positions BitPay as an ideal iGaming payment gateway solution for casinos, catering to a wide range of financial requirements.
In the ever-evolving landscape of cryptocurrencies, Coinspaid stands as a beacon of innovation and trust. With a rich tapestry of features and services, it has carved a niche for itself in the crypto payment gateway realm. This financial trailblazer, born in 2014, has since been on a relentless mission to democratize digital currencies for all.
One of Coinspaid’s most remarkable attributes is its vast transaction support. Whether you want Bitcoin, Ethereum, Ripple, or traditional fiat currencies like USD, CAD, GBP, or EUR, Coinspaid has you covered. It’s a convergence point where crypto enthusiasts of all levels unite. Instant deposits and withdrawals are what businesses get, plus, zero commissions for all crypto transactions.
But Coinspaid doesn’t just stop at convenience; it’s a guardian of privacy too. While many competitors demand your bank details, Coinspaid offers the elusive cloak of anonymity. It’s a realm where transactions remain discreet, and user data is safeguarded with utmost diligence.
Coinspaid’s reach extends far and wide, serving a vast ecosystem of over 1100 merchants. As of 2021, it had operated cryptocurrency transactions worth a staggering 5 billion dollars. Such an achievement doesn’t just make it a leader; it’s the indisputable champion of crypto payment gateways. It’s the go-to choice for businesses, gaming platforms, and anyone venturing into the captivating world of crypto transactions.
Is it necessary to have a crypto gambling license?
Yes, having a gaming license is essential to start and operate a legal gaming company, and crypto casinos are no exception. Nevertheless, there is no dedicated crypto–related license, but if a casino accepts cryptocurrencies like Bitcoin as a payment option, they must hold the necessary authorization that endorses such transactions within the legal framework.
Are crypto casinos legal?
The legality of crypto gambling varies significantly based on your geographical location and the regulations governing online gambling in that area. In general terms, certain countries that adopt progressive stances toward online gambling encompass a considerable portion of the EU, Canada, the UK, and Australia. The United States occupies a middle ground, with distinct states opting for diverse approaches to online gambling. While laws surrounding online gambling remain rather stringent, the acceptance of sports betting is notably more widespread. Conversely, there exist nations where online gambling is outright prohibited, as exemplified by China, Indonesia, and the UAE.
How do online crypto casinos make money?
Online crypto casinos generate revenue through several methods. Firstly, they request fees for transactions, typically a minor percentage of the overall transaction value, which helps cover the casino’s operational expenses. Secondly, they offer gaming with a house edge, ensuring the casino maintains a long–term benefit over its users. They make money by taking in more from players than they give out in wins. Finally, commissions from affiliates and revenue from advertisements are huge source for crypto casinos to attract profits, which includes advertisement or sign up fees.
What is the future of crypto gambling?
The crypto casinos‘ life is long and bright. Before they started to be used in different aspects, including casinos, virtual currencies significantly increased in recognition, bringing a new business perspective for different sectors.
More players will likely embrace the use of digital currencies for online gambling. This could lead to an increase in the number of crypto casinos and a broader range of games and services tailored specifically for cryptocurrency users. Regulations surrounding cryptocurrencies and online gambling vary in different regions, so the future growth of crypto casinos will also depend on the legal framework in each jurisdiction. However, as governments and regulatory bodies adapt to the changing landscape, we may see more favorable regulations and increased acceptance of cryptocurrencies in the iGaming industry.
Which is the leading crypto payment gateway?
The landscape of crypto payment gateways is continuously evolving in iGaming, many prominent iGaming companies choose CoinPayments, or Skrill, as well as BitPay. Note that it’s important to research and consider factors such as fees, supported cryptocurrencies, security, and customer support when choosing a crypto payment gateway for iGaming purposes. Checking the latest industry news and consulting with experts in the field for the most up-to-date information on the leading crypto payment gateways in iGaming is recommended.
The reality is that crypto gambling is having remarkable growth day by day. Numerous iGaming platforms are emerging to cater to various types of cryptocurrencies. Legislations regarding Bitcoin are expected to rapidly evolve worldwide in the coming years. Casino operators should abide by the gambling laws that control conventional fiat money casinos in their target areas to ensure adherence and reduce any dangers related to illegal activities. By doing so, they can navigate the changing landscape and operate within the bounds of the law.