The rapid growth of bitcoin and altcoins aligns with the continued expansion of the global online gambling industry. Cryptocurrencies facilitate fast, private, and secure payments perfect for iGaming.
The global online gambling market size already exceeded $66.7 billion in 2020. Technavio forecasts it could grow by $114.1 billion between 2021 and 2025. This rapid industry expansion means online casinos need payment solutions catering to privacy-focused players.
Cryptocurrencies like Bitcoin and Ethereum facilitate anonymous transactions using encryption. Gambling sites, like CasinoHause, adopting crypto can enable instant deposits and cash-outs for customers worldwide. Players also avoid sharing financial information with casinos.
While credit cards remain the top iGaming payment method, cryptocurrencies offer distinct advantages:
Faster Processing Times
|Up to 15 minutes
|Instant to 1 day
|Instant to 1 hour
Ethereum processes casino payments in under one minute while withdrawals finalize in 10-15 minutes. Players don’t wait days for cards or eWallet services.
Gamblers prefer anonymity given aviator online betting legal gray areas in some regions. Cryptocurrency transactions enhance privacy through encryption. Players connect wallets to casinos without exposing personal finances.
However, transparent blockchains like Bitcoin don’t offer complete anonymity. Improved privacy coins like Monero better shield user identities and transaction details.
Online casinos face heavy transaction fees from traditional processing services, especially across borders. The average credit card payment costs a merchant 2-3% per transaction.
Popular cryptocurrencies charge far lower fees. For example, an average Bitcoin transaction costs under $2.50 as of January 2023. Lower fees let gambling sites pass on savings to customers through reduced deposit/withdrawal charges.
Of course, cryptocurrencies come with their own unique regulatory and security considerations which the online gambling industry continues addressing. Yet crypto and iGaming seem destined for an ongoing lucrative partnership as both sectors continue expanding.
One of the main appeals of cryptocurrencies is their decentralized nature separate from banks and government oversight. Bitcoin and other popular cryptos rely on blockchain technology where transaction verification is distributed across countless nodes in a peer-to-peer network.
This lack of centralized control gives online gambling sites more options if faced with payment processing roadblocks. Major credit card brands have restricted gambling transactions in certain jurisdictions when local regulations shifted. Cryptocurrency adoption prevents disruptions, since decentralized networks have no single authority that can impose arbitrary transaction policies.
Decentralized blockchains also facilitate censorship resistance by design. Gambling sites needn’t worry about governments or other entities attempting to interfere with or block payments. As long as one computer in the peer network accepts the transaction, payments will process successfully.
AML and KYC Compliance
While cryptocurrencies enable private online gambling transactions, crypto casinos still must comply with anti-money laundering (AML) and know your customer (KYC) regulations in regulated jurisdictions. Reputable sites collect player IDs and proof of address before allowing withdrawals.
The public transparency of blockchains actually supports AML efforts. All transactions become visible, traceable records. Advanced analysis can track funds tied to suspicious activity. Casino operators can leverage blockchain analytics tools to pinpoint transactions linked to stolen credit cards, black market activities, sanctioned regions, or other compliance red flags.
Some privacy-focused cryptocurrencies like Monero do obscure transaction details and wallet balances. But online casinos following regulations may avoid coins with enhanced user anonymity and instead opt for more transparent blockchains. Hence a balanced approach helps crypto gambling sites meet security and compliance mandates expected of the traditional finance sector.