Cryptocurrency gambling is experiencing widespread adoption and more users are wishing to use it for their online gaming activities. Some sites offer Bitcoin Gambling while others already offer deposits and withdrawals in various cryptocurrencies and this is something that will continue into 2021.
It’s no longer enough to just offer Bitcoin transactions on your iGaming site. Some users may want the choice to switch to fiat as well and you should provide the execution of transactions in a variety of different coins such as:
Cryptocurrency was once a niche market but it is now widely accepted and adopted. You can be paid in crypto, buy a house with crypto, do your weekly shop with crypto, and of course gamble with crypto. This application of the technology on everyday activities has led to peoples perception of it improving. It is now recognised as something with value, benefits, and that is secure and trustworthy. Incorporating crypto payments into your site is a must, read on to learn why…
The expected rise of Cryptocurrency Gambling
Those that have been seeking a greater level of privacy in their financial transactions have been increasingly drawn to cryptocurrency gambling due to its decentralized nature. Virtual currencies such as Bitcoin, Monero, Ether and various other cryptocurrencies have become increasingly more popular, particularly in the online gambling sector.
As we move into 2021, both players and operators are becoming more aware of the benefits of cryptocurrency gambling. Bitcoin Gambling Casinos and Sports betting platforms which accept crypto payments are successfully using it as a selling point and growing their client base. Additionally, other platforms and startups will show a willingness to adopt cryptocurrency as a valid form of payment.
The increase in its popularity and adoption is due to several factors that are particularly beneficial to the online gambling market. Benefits such as instant transactions, low fees, and anonymity all play a part in the way it is continuing to successfully infiltrate iGaming. This, in turn, is likely to contribute to an increase in players that are drawn to Bitcoin gambling, resulting in an increase in revenue across the board.
Benefits of Cryptocurrency gambling
Cryptocurrency and Bitcoin gambling is the future and there are numerous benefits for both operators and players.
Integrating cryptocurrency payments into your online gaming platform is something that all operators and online betting license holders should be considering for 2021. Here are just a few of the key benefits of offering cryptocurrency payments for your gaming company.
Cost-Efficiency and Low Transaction Fees
From an online gaming license holders point of view, providing crypto payments on your online gambling site also has many benefits. Merchants can often negotiate better rates for conventional payments but still, a big chunk of income is lost on paying fees to payment service providers. But with cryptocurrency payments, things are rather different. Some of the leading crypto payment gateways charge as little as 0.5% which is significantly less than fiat currency competitors. By providing for crypto payments on your site, you can funnel a large percentage of your revenue through a payment method that saves you a fortune on processing fees.
Instant and Borderless transactions
Chances are, your customers will not all be located in one country. Therefore, offering cryptocurrency payments means that your international client base can enjoy instant cross-border payments and transactions. The transaction is completed in a matter of seconds and it’s secure, immutable, and private. The best thing is that even those without a bank account or credit/debit card can send crypto payments making online purchasing and playing accessible for all.
When you transact in cryptocurrency, you don’t have to wait for it to be processed or clear and you certainly don’t have to pay international fees. Anyone with an internet connection can send a cryptocurrency transaction when they want, to whom they want, and for how much they want.
Privacy & Transparency on Cryptocurrency and Bitcoin Gambling
Cryptocurrency transactions all take place on the blockchain– a decentralised ledger that is completely immutable. This means that once a transaction is made, it is permanent and cannot be reversed, edited, deleted, or otherwise tampered with.
This means that the risk of fraud, identity theft and counterfeit payments are significantly reduced. Crypto payments provide both online gaming license holders and players with an extra layer of security.
No chargebacks on Crypto Payments
Businesses bear a lot of losses from chargebacks. This is where a customer makes a card payment, receives the item, and then reports the charge as fraudulent to get it refunded. There are zero risks of this with crypto payments. Once they’ve been registered on the blockchain, they can’t be edited or reversed. That means there’s no way a chargeback can be given without the consent of the company.
New technology savvy generations
The market is particularly popular with Millenials whose spending power is increasing as they progress through their thirties. Cryptocurrency payment facilities will allow you to share this forward-thinking and progressive group of consumers and entice them to use your services. Integration of cryptocurrency in your business is a smart move for those looking to engage this market.
Considering all of the benefits above, we can expect to see a significant increase in the number of crypto payments, particularly in the gaming sector, over the next few years. As far back as 2013, Bitcoin gambling transactions accounted for as much as 50% of all Bitcoin transactions. Bitcoins popularity has significantly increased since then. These figures show that incorporating cryptocurrency into any iGaming platform is no longer an option, it’s a necessity.
The cryptocurrency was once a niche market but it is now widely accepted and adopted. You can be paid in crypto, buy a house with crypto, do your weekly shop with crypto, and of course gamble with crypto. This application of the technology on everyday activities has led to peoples perception of it improving. It is now recognised as something with value, benefits, and that is secure and trustworthy.
But it’s no longer enough to just offer Bitcoin transactions on your iGaming site. You need to provide the execution of transactions in a variety of different coins including Etherum, Litecoin, Monero, DASH and Bitcoin Cash.
World’s Finest Crypto Jurisdictions for Cryptocurrency Gambling
When it comes to cryptocurrency gambling, there are two kinds of jurisdiction. The first are those that have created a legal framework to nurture and develop the industry, and those that haven’t. Some operators choose to work in jurisdictions that don’t have the necessary frameworks in place but this is something of a grey area. It can lead to issues with third parties, advertisers, software companies, and banks, as well as potential issues with the authorities.
Fast Offshore recommends only working in reputable jurisdictions that have an adequate structure in place to regulate and oversee the industry. Doing so helps you boost your credibility and stay on the right side of the law. Our top four crypto jurisdictions for gaming are:
Curacao is a prime jurisdiction for gaming and crypto gaming startups. They have been in the iGaming business since the mid-’90s and offer one of the most cost-efficient, quick, and simple licensing processes around. In addition to that, they are crypto-friendly and those with a Curacao gaming license are welcome to offer transactions in a range of cryptocurrencies and virtual coins.
Those that opt for a Curacao license for their crypto gaming company can enjoy 0% tax and VAT, quick and straight forward licensing, and a simple setup process with minimal red tape and bureaucracy.
We tend to recommend Curacao as the perfect jurisdiction for startup crypto gaming companies. The low costs involved in the process in-country means they can prove their concept and get the company in good financial shape before seeking to license in another jurisdiction.
Kahnawake’s online gambling license comes with a solid reputation. The Gaming Commission is known for its zero-tolerance approach to violations of fair play, underage gaming, or any criminal activity. As such, a license from them carries weight when it comes to negotiating with third parties or setting up bank accounts. They are also welcoming to online gambling companies that want to offer cryptocurrency payments.
The setup costs more than Curacao but significantly less than Malta, ongoing fees are affordable as well. In terms of timescale, everything can be done within a few months. While there is more paperwork to get through when compared to Curacao, there is less than in Malta or other crypto jurisdictions.
Those acquiring a Kahnawake crypto gaming license can enjoy 0% tax rates in Kahnawake as well, meaning there is more liquidity for expanding the business going forward.
Recently, the Maltese government has taken steps to incorporate crypto into the market. They became the first country in the world to create a comprehensive legal framework for cryptocurrency, blockchain, and virtual assets. Nicknamed “The Blockchain Island”, Malta is home to blockchain startups, crypto exchanges, and several gaming companies that offer transactions in a variety of cryptocurrencies.
The Malta Gaming Authority is by far the most reputable in the world and the license comes with a hefty price tag. But for those with the capital to invest, or established iGaming companies, it is a solid option. The Maltese government is extremely ‘pro-business’ in their approach and there are a wealth of benefits to operating a Maltese crypto gambling company. These include some of the lowest effective corporate tax rates in the EU and access to a highly-skilled, English speaking workforce.
The Central American country of Costa Rica does not offer an online gambling license. Companies are allowed to incorporate a company where the purpose is online crypto gambling and they are then allowed to conduct activities from Costa Rica. In terms of cryptocurrency, the Costa Rican government is very pro-crypto and supports the growth and development of the industry. Again, they take a somewhat hands-off approach which is great for startups that are finding their feet.
Incorporating a crypto gaming company in Costa Rica does come with some challenges. There may be difficulties. Likely, you won’t be able to get a conventional bank account, which is ok if you solely want to transact in crypto. We recommend launching your platform in Costa Rica, ironing out any issues, honing your offering and then going for licensing elsewhere.
Questions about Cryptocurrency Gambling? Contact Fast Offshore
If you are thinking of applying for an offshore betting license, we would advise you to consider incorporating cryptocurrency into your product. Fast Offshore has been working in iGaming and corporate services for over 22 years, and blockchain and crypto since 2009. This puts us in a position where we can give you comprehensive advice on how to incorporate cryptocurrency into your online casino or betting site.
We can assist with acquiring your gaming license, incorporating and setting up all the necessary corporate structures, and helping you provide cryptocurrency payments through your site. Intrigued? Contact us today to find out.
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