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Bitcoin

Deciphering the Mysteries of Bitcoin and DarkWeb Gambling

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Most people don’t pay much mind to crypto gambling, unless they are players themselves. However, crypto gambling is a significant part of the cryptocurrency market. For example, in 2018 Bitcoin casinos were responsible for approximately 50% of all BTC transactions. So let’s look past the surface and dive a little deeper. Here’s what you should know about Bitcoin gambling on the surface web and the deep web.

Simply put, crypto casinos are casinos where players can top up their wallets, hold accounts and pay out their winnings in some form of cryptocurrency. Casino Guru, which has the largest up-to-date database of online casinos, additionally defines two varieties of crypto casinos. The first variety could be considered a “standard” crypto casino, is basically the same as any other online casino,  but allows players to make deposits, play, and/or cash out in cryptocurrencies.

It requires identity verification, a standard feature of the online gambling industry. But there are also so-called “anonymous” casinos, which require no identity confirmation at all, only an e-mail, username, password and a crypto wallet. The Casino Guru database contains 161 casinos that can be classified as crypto casinos, but only 32 anonymous casinos.

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Why has crypto gambling gained so much traction? To understand the answer to that question, we need to have a quick look at some of the legislation concerned with online gambling in general. Online gambling is very strictly regulated or outright banned in many countries. For example, there are only three states in the entirety of the USA, where online casinos are allowed operation. The Unlawful Illegal Gambling Enforcement Act (UIGEA) of 2006 forbids online wagering. But it has a loophole. It only specifies wagering in fiat.

And it’s not just America, that has a hole in their legislation in terms of crypto gambling. In truth, there are only 7 countries in the entire world which have a semblance of crypto gambling regulation. Namely, these are: the UK, Italy, Netherlands, Greece, Poland, Belgium and Japan, which is currently considering legislative solutions.

Coming back to the two varieties of crypto casinos mentioned earlier, anonymous casinos actually can’t get a license anywhere at the moment, even if they wanted to. The way they operate just doesn’t match the requirements of any reputable online gambling licensing authority.

For the majority of the world, bitcoin and other crypto are casinos in a legal grey area – not technically legal, but not illegal either. So, players that couldn’t scratch their gambling itch otherwise suddenly found themselves with a solution. A solution that allows them play anonymously (in some cases), from the comfort of their home and offers them an incredibly wide variety of games to choose from.

Though it is true that countries can still bar their citizens’ access to certain sites, like these crypto gambling sites specifically, this has done nothing to stop determined players. In the past, gamblers needed to download the TOR browser (abbr. The Onion Router), which granted them access past the constraints of surface web browsers and into the deep net. There, Hidden Wikis, which are sites aggregating links to various parts of the deep net linked to a crypto casino of their choosing and their game began. The benefit of this being that the combination of TOR and cryptocurrencies made them virtually untraceable by their own governments.

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But there is a reason to why there are so many horror stories about the deep web. The deep web harbors numerous fraudsters and scam artists, which we’ll get into in a second. But thankfully, the advent and popularization of VPNs (abbr. Virtual Private Networks) has enabled players to enjoy safer experiences on the surface web. Crypto casinos operating on the surface web often publicize parts of the code they run on to boost trust with their customer base and avoid the negative reputation deep web crypto casinos have garnered.

As you can imagine, there’s a big “BUT” to everything we’ve told you so far. Be honest, you saw it coming from a mile away. So, what’re the issues with crypto gambling?

1) Crypto gambling can be fraught with crime. Especially so on the deep web, but you can run into scams and unfair practices even on the surface web. As the Routine Activities Theory of crime states, crime occurs whenever a suitable victim, a lack of capable guardian and a motivated criminal come together in one place. And when you have people willing to risk their hard-earned crypto on gambling, in an environment with limited or no law enforcement, you’ll find plenty of people more than willing to rid these players of their BTC.
The most popular crypto gambling scams across the web are:

  • Ponzi schemes
  • Deposit scams
  • Fixed games
  • Deposit syndicates

On top of that, money laundering is also a quite common occurrence in the crypto gambling sphere. But it’s not just the players who are at risk. Even the casino itself can become a victim to hackers, which would love nothing more than to empty out the casino’s crypto wallet.

2) Crypto gambling can be even more addicting than traditional gambling. Problem gambling, also known as gambling addiction, is an issue that the entire gambling industry at large has to face. However, though traditional casinos and betting can be addictive, online gambling even more so, crypto gambling poses the biggest risk to unsuspecting gamblers.

Crypto casinos operating on the fringe of the law can titillate potential customers with very aggressive advertising and marketing tactics, making them offers on bonuses and benefits, which no other casino can. That’s due to the fact that unlicensed casinos do not have to pay the standard fees that come with gambling operations, like tax, licensing fees, etc.

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Then, once the player is drawn in, they get hit with the promise of fast payouts, quick game results and nearly limitless bet heights. Some illegal BTC casinos take full advantage of their position and completely disregard the recommended responsible gambling practices. After all, the more players you hook, the more money you make.
Then, there’s the simultaneous benefit and downside of anonymity. Since anonymous crypto casinos don’t require any form of identity confirmation, they’re easily accessible even to people who have no business being there. That goes for self-excluded players, as well as underage gamblers, who are especially vulnerable to gambling addiction.

In closing, though the siren call of crypto casinos may be tempting, be aware of the dangers that you might face by choosing to chase those sweet crypto winnings. Though there always is a risk factor in gambling, but playing in unlicensed casinos may make the risk greater than it is worth.

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Bitcoin Miner celebrates two years of hugely successful collaboration with ZBD

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Bitcoin Miner, the world’s number one Bitcoin game, is celebrating two years of its collaboration with ZBD, a leading fintech company powering digital economies for gamers and developers. Since the partnership began, Bitcoin Miner has gone from a forgotten title with no players to becoming one of the largest play-and-earn games ever, with over 2 million lifetime users.

ZBD’s Lightning-powered payments technology enables developers to inject instant rewards into their games to boost retention and community engagement. Fumb Games, the studio behind Bitcoin Miner, partnered with ZBD in March 2022 to help revive its flagship title, enabling it to reward players with fragments of Bitcoin for playing the game as normal. From the outset, the integration of ZBD’s tech had a marked impact, leading to a 12x boost in 30-day retention. Two years on, Bitcoin Miner is achieving 40,000 daily active users, making it the biggest Bitcoin game by user count.

Besides the retention benefit of rewards, which leads to player retention that exceeds 6 months, the success of Bitcoin Miner has also been fueled by community-based features such as regular live events. The majority of Bitcoin Miner players are US-based millennial males who enjoy engaging with gaming communities, with weekly events leading to a 20% increase in revenue. As well as its own community of engaged players, Bitcoin Miner benefits from the ZBD app user base of more than a million gamers.

Paul West, Founder of Fumb Games, said “Bitcoin Miner has proven that US players love games that are fun, snackable and rewarding. The  game is not only sustainable, but has soared to new heights since the partnership with ZBD. It’s no surprise that I’m very excited for the future of bitcoin and player-friendly rewarded games.”

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Ben Cousens, Chief Strategy Officer at ZBD, said “The two-year collaboration with Paul and Fumb Games on Bitcoin Miner has been a quintessential success story for what we’re building at ZBD. It proves the value in offering rewards for gamers and the success of ZBD’s rewards and payments tech at making it possible at speed and scale. We will no doubt see further impressive numbers for Bitcoin Miner that cement its status as world’s number one Bitcoin game, and we also look forward to extending the potential benefits of Bitcoin rewards to more developers.”

In November 2023, Fumb Games also integrated ZBD’s technology in its idle tycoon RPG SpaceY. ZBD works with more than 100 game developers worldwide, including major brands such as Square Enix, and is also used by innovative adtech companies like Slice and AdInMo.

The post Bitcoin Miner celebrates two years of hugely successful collaboration with ZBD appeared first on European Gaming Industry News.

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Bitcoin

Time to Invest in Crypto? SOFTSWISS 2023 iGaming Market Overview

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In 2023, crypto bets expanded by more than 20%, as reported by SOFTSWISS. The leading technology company, with over 15 years of expertise in iGaming and number one in crypto-optimised software, shares its analysis of the dynamic crypto landscape.

According to industry research, the global iGaming market is projected to double by 2030 at a compound annual growth rate of 11.7%. Revenues are expected to exceed 140 billion euro, with a significant share attributed to crypto gambling. 

SOFTSWISS, as the innovator in crypto iGaming software development, regularly conducts research to track the dynamics of crypto within the iGaming market. Using extrapolation, comparative and correlative analysis, experts analyse the data gathered from over 600 crypto-friendly brands powered by the company.

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iGaming Market Overview

Based on SOFTSWISS data, the iGaming market had a stable expansion in 2023. In absolute terms in euro, the Total Bet Sum grew by 38.2% year-on-year. At the same time, the Total Bet Count displayed an even stronger increase, surpassing 51.2%

The average bet is slightly decreasing for several reasons. One significant factor is the broader reach of online gaming, fueled by advanced technology and increased internet availability. This trend is more evident in emerging markets like LatAm and Africa, where bets are usually smaller. Additionally, the increasing number of players under 30 with budget constraints adds to the decline in the average bet size.

State of Crypto

The in-depth quarterly analysis, initiated at the beginning of 2022, reveals that fiat bets are undergoing more substantial growth compared to crypto bets. In Q4’23, the Crypto Bet Sum saw an 8.2% rise in absolute terms, while the Fiat Bet Sum surged by 16.4% compared to Q3’23. At the end of 2023, the crypto share in the Total Bets Sum (27.5%)  decreased by 3.9 p.p.

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The comparative analysis of the 2023 Crypto Bet Sum against  the previous year shows 21.1% growth. Simultaneously, the Crypto Bet Count increased by 50.5% year-on-year. The growing number of bets indicates rising interest in crypto gaming, but the greater availability of digital currencies may lead to slightly more economical bets.

“The advantages of employing digital currencies, such as swift transactions and anonymity, are key drivers for many players. Given these dynamics, the market demands expanding iGaming projects’ opportunities for crypto players. The in-game currency conversion, for example, allows operators to engage players with cryptocurrency assets in games initially designed for fiat transactions. The projects that embrace such possibilities continue gaining more advantageous market positions,” shares Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.

Crypto Bet Stabilisation

The average fiat bet remained steady at around 0.82 euro throughout the previous year. Despite fluctuations in the average crypto bet during 2023, ranging from 1.59 to 1.88 euro, the changes appear modest compared to the twofold drop observed in the average crypto bet during Q4’22, which reached 1.56 euros. This indicates a certain level of stabilisation in the average crypto bet throughout 2023. 

Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, comments: The dynamics of the average crypto bet align with crypto market fluctuations. When digital currency values stabilised in H2 2022, the average crypto bet also levelled out. Another thing is that the average crypto bet is almost two times higher than the average fiat bet, which testifies that digital currencies are potentially used by players with higher incomes. Operators should consider this to increase project profitability.”

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Cryptocurrencies Rating

The Top Five most operated digital coins in iGaming landscape have remained stable during the last two years. 

In 2023, the cryptocurrency structure looks as follows:

  • Bitcoin – 73.3%
  • Ethereum – 9.9%
  • Litecoin – 6.6% 
  • Tether – 4.6%
  • Dogecoin – 3.1%

In Q4 2023, Bitcoin experienced a slight decline by a 5.7 p.p. compared to Q3 2023. Conversely, Ethereum and Litecoin showed growth of 4.7 p.p. and 2.2 p.p., respectively, during the same period.

Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarises: “The digital currencies market is rapidly expanding, with estimates showing over 50% growth in capitalisation in 2023. Despite the risks caused by the high volatility of crypto and its dependence on various factors, using it can bring extra profits for operators. The iGaming industry is promising for investments due to growth in both fiat and crypto markets, but success depends on trustworthy and experienced partners.

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About SOFTSWISS 

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

 

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Evgeniy Babitsyn from Bets.io Comments on the Future of BTC

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In January 2024, the SEC approved 11 Bitcoin ETFs, marking a significant announcement for Bitcoin and the wider crypto-market. This approval demonstrates the growing integration of traditional finance with decentralized finance. The announcement has sparked mixed reactions, with crypto experts questioning what this means for the future of tradable crypto assets. On the back of the announcement, the news that BlackRock will now be the biggest holder of Bitcoin has made the issue more complex.

Evgeniy Babitsyn, CMO of Bets.io, is an expert crypto commentator who has been closely monitoring these latest developments.

“There are pros and cons to the BTC ETF. On the one hand, it gives retail investors another avenue of access to the crypto market, allowing them to invest through a traditional finance instrument. This is important because investors not well-versed in crypto investing can find it difficult to access and invest in crypto assets,” he said. “However, the bigger point here is that BTC’s incorporation into an ETF goes against the founding principles of cryptocurrency. Its evolution is a consequence of advanced technology removing the ‘middleman’ in transactions, empowering individuals to make transactions free of bureaucratic institutions.”

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When it comes to the regulation of crypto assets, Evgeniy does admit that there is a role for regulators to play. However, he advises it should not go against the fundamentals of cryptocurrencies. “While there is a role for regulation to play, having an ETF in play goes against what BTC initially set out to achieve as an alternative to traditional financial systems.”

Increased institutional involvement in crypto trading can also distort the market, posing significant questions for the future. “News is now emerging that the world’s largest asset manager, BlackRock, is on track to becoming the biggest holder of BTC because of the ETF,” Evgeniy said. “Coupled with this, the ongoing developments from state entities to regulate crypto assets, the question now is whether the institutional embrace of BTC marks the beginning of the end for the coin, at least in its original form.”

Bets.io is a renowned brand within the world of crypto iGaming. It was launched in 2021 and has been rapidly expanding ever since. In 2022, the brand was acclaimed as The Rising Star Operator of the Year by SiGMA Europe for its ambition, results, and potential in the online entertainment industry. As such, it has been keenly watching the developments of crypto assets unfold.

Looking to the future, Evgeniy sees big announcements on the horizon. “For now, we know that 2024 will be a monumental year for the future of BTC, cryptocurrencies, and Web3.”

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