With the introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, the US government declared their negative stance against online gambling:
«The Act prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law».
Such amendments to the law severely undermined the gaming industry putting its development on hold. However, the advent of the bitcoin casinos and sportsbooks brought rapid changes to the field.
With Internet as a driving force the 21st century can be referred to as the era of disruptive technologies and innovative solutions. As a result, many companies saw a shift to online system, thus being able to raise income and improve their service level significantly.
The global financial crisis of 2008 shattered the society’s trust in the traditional banking system and in dollar too. Banks failed to evaluate possible outcomes of the financial breakdown. However, at the time the US government provided financial support to the banks experiencing difficulties using US taxpayers’ funds. The consequences of the 2008 crisis can still be felt in many countries around the world. That is why, the dollar lost its status of the once mighty with the society not seeing it as perspective anymore, and the US market dominance was heavily disrupted.
Bitcoin makes a kind of revolution in the financial sector. Due to the anonymous nature of crypto-payments online gamblers can conceal their transactions from government; thus, bitcoin is gaining enormous popularity among players, overshadowing standard deposit methods.
In order to make deposit into the bitcoin casino account using the bitcoin wallet the player has to download special software for gaming purposes. Moreover, a wide spectrum of games can be installed from the Apple and Google Play Stores to one’s mobile phone or PC.
Bitcoin funds can be credited into user’s account in a number of ways, for instance, through a bitcoin wallet, account on bitcoin exchanges, such as Kraken, LocalBitcoins, Coinbase, or specialized debit cards.
Bitcoin casino industry
Bitcoin is a volatile cryptocurrency given its regular fluctuations, that is why it is advisable that the bitcoin account or wallet owner constantly keeps an eye on its price charts. In 2003 the founder of the bitcoin gambling website Satoshi Dice Erik Voorhees sold his business for 126.315 bitcoins equaled 11.5 million at the time.
The federal government of the US is keeping a close watch on bitcoin gambling platforms founded oversees. However, Americans are free to gamble on offshore websites granted with a legal certificate, meaning that they agree to run their business in accordance with the rules prescribed by the country’s’ jurisdiction.
The owner of former bitcoin poker website SealsWithClubs Bryan Micon in one of his interviews said:
«We don’t have a bank account at Seals with Clubs. There’s no bank account. There’s no bank of any sort that we do. We only do this one weird brand-new Internet protocol transaction that some of the nerds out there are calling money».
After this statement the government carried out the investigation at Micon’s company and discovered that he was running unlicensed gambling website. Despite the existence of many decent websites in the gaming industry there is still a risk that may come across unreputable platforms. It is highly recommended that newcomers carry out their own research on a particular gambling company and make sure it is licensed before they make any deposits.
To avoid an unwelcome situation, prior to converting one’s winnings into the local currency gambler should ensure that gaming is legal in his country. Another feature worth paying attention to is the implementation of the provably fair technology at the casino software which helps it stand out from other traditional gambling operators. The technology is based on the cryptographic hash functions. The process goes as follows – the server creates a secret seed and sends a randomly encrypted one to the player. Bitcoin offers an instant withdrawal system, however the processing speed of a particular transaction depends on the amount of cash transferred.
All bitcoin deposits to the casino account are registered in the public ledger and upon transaction an amendment to the ledger’s ownership record is made. The bitcoin address owner stays completely anonymous and can be only identified by a digital key that allows them to carry out the transfer of funds. The transaction is considered valid if the digital and public keys align with each other.
Some bitcoin casino platforms impose deposit limits. Typically, BTC is divided into the following units – one thousandth of bitcoin – mBTC and one millionth of bitcoin – uBTC. One bitcoin equals to 1000 mBTC.
Why bitcoin is so attractive?
As a revolutionary cryptocurrency that has rapidly gone mainstream, bitcoin, certainly has a lot to offer from instant, anonymous and reliable payments, low transaction fees to easy and fast opening account or bitcoin wallet processes. In the countries where traditional casinos are outlawed, the bitcoin-based gambling platforms pave the way to success; for instance, a number of gaming websites allow US gamblers to use their services.
Throughout the time bitcoin had many ups and downs. The cryptocurrency price skyrocketed in 2013, but later experienced its worst plunge ever. However, bitcoin is still on the rise given the interest of many financial industry and government representatives in studying this unique and modern money type.
Obviously, bitcoin has a promising future, and with the help of enthusiasts and tech-savvy users it is going to progress further on.
Please check our French partner website – L’EQUIPE.