Despite the fiery crypto bear market, online prediction and gambling markets in the blockchain space have kept growing, as data from Defi Llama shows. At the height of the crypto bull market in November 2021, the crypto gambling market topped $68.36 million before sliding down 74% by June 2022, as the broader crypto market lost over $2 trillion in market capitalization. As of writing, the crypto online gambling market has shown signs of recovering to its previous highs – with the total locked value (TVL) on these platforms reaching a yearly high of $64.84 million as of July 2023.
Chart showing the growth of the crypto predictions market (Image: DeFi Llama)
Following the staggering growth of crypto gambling sites and online casinos in the bear market, we have witnessed impressive developments in this market, from high-end games to an increase in ‘provably fair’ games and added trust on these platforms. Additionally, newer generations are increasingly adopting crypto-enabled online casinos, as they offer the most profitable investment opportunities (despite the high risk) and quick cash withdrawals compared to their traditional counterparts.
Platforms such as Stake, Duelbits, and FUN Token have witnessed massive popularity and value growth over the past year, and the trend looks to continue as players continue to flock to crypto online casinos. Today, we discuss why these blockchain-enabled sites are rising in popularity, the advantages they offer over traditional gambling sites and the benefits of the explosive growth of these online casinos on the broader crypto market.
Crypto Online Casinos are Taking Over Traditional Sites
One of the significant features of successful online casinos, whether it be a game of skill or chance, is the presence of trust between the developers and the players. The players have to trust that the house is not working to increase its odds more than what has been stated. To ensure trust in traditional casino houses and online casinos, regulators must audit every single game every single time. Nonetheless, it is almost impossible to prove that the game is fair, especially when it is not. To ensure the game is fair, there is a need for a certain level of trust whereby not the game’s owners or players can game the system.
Here is where blockchain comes into play.
For instance, Duelbits, a crypto gambling site, introduces blockchain to its games and predictions market. Simply, blockchain allows the game to be fully transparent as every game is recorded on the blockchain. Apart from offering ‘Provably Fair’ games, the blockchain also introduces highly secure accounts, immutability, and quick cash deposits and withdrawals.
Moreover, given blockchain does not need any third party, Duelbits is able to offer low fees and high rewards to users. Additionally, the owners also publish the source code in open access and provide verification tools for their lottery and casino draws, allowing players to authenticate the fairness of the games.
Understanding the ‘Provably Fair’ Concept
As explained above, blockchain technology introduces a novel concept of ‘provably fair’ games to online casinos. A game is referred to as provably fair if there is a mechanism in place allowing users/players to confirm with certainty the fairness of the game process.
An online casino on the blockchain records all games, accounts and values on a public ledger – allowing everyone with the game’s address to check all ticket purchases and prize payouts on the blockchain explorer. With the advent of smart contracts, online casinos can be governed directly with program code, removing any need for human interference.
Furthermore, in virtual sports gaming, the platforms have to use a random number generator (RNG) to decide the outcome of the match to ensure the outcome of every match is not influenced by the bookmarker in any way.
How Online Casinos Are Influencing Crypto Adoption
The burgeoning proliferation of crypto online casinos and gambling platforms is playing a pivotal role in fostering the widespread adoption of digital currencies on a global scale. This transformative trend is characterized by several interconnected factors that collectively contribute to the growing integration of cryptocurrencies into mainstream financial and entertainment ecosystems.
First and foremost, the rise of crypto online casinos and gambling sites has provided a practical and engaging use case for digital currencies. These platforms enable users to seamlessly transact with cryptocurrencies, offering advantages such as enhanced privacy, reduced transaction costs, and increased accessibility compared to traditional fiat currency-based gambling options.
Duelbits is the official regional sponsor of the Argentina F.C. men’s team. (Image: Duelbits)
Furthermore, numerous online crypto casinos have established partnerships with leading sports teams and organizations, thereby increasing global awareness of cryptocurrencies. For example, Duelbits has partnered with Argentina’s men’s national team and Aston Villa FC, an English top-flight team, and Stake.com is the official sponsor of Everton F.C., the UFC, and Alfa Romeo F1 team. With millions of views in these sports, these advertisements bring new users to crypto.
Lastly, online casinos follow the ethos that often accompanies the world of cryptocurrencies – higher risk/rewards. This synergy has attracted a significant demographic of cryptocurrency enthusiasts who are not only interested in financial investments but also intrigued by the potential for substantial gains through gaming and betting. As these individuals engage in cryptocurrency gambling, they become more accustomed to digital asset transactions, thereby contributing to the broader acceptance of cryptocurrencies in everyday life.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.