Will blockchain revolutionise online gambling?
The crypto industry has been thriving for years, producing innovations on a regular basis. Now a new hype is emerging that affects the gambling industry. GambleFi could revolutionise online gambling for money. What is it all about?
People are already talking about the "blockchainisation of culture" or similar drastic effects of cryptocurrency on all our lives. The fact is that the technology in question is becoming more and more embedded in everyday life. A new trend in the crypto industry is called GambleFi, which on a conceptual level is a combination of the terms "gambling" and "finance". This development marks the merging of gambling with blockchain technology.
Specifically, the combination of these two markets is expected to reshape the gambling industry. Fast transactions or winnings transfers without intermediaries, as well as a high level of transparency (provided by the blockchain, of course) and security are strong arguments in favour of GambleFi. On the other hand, there is the common Wild West mentality of the crypto industry, processes that are often opaque to the layman and difficult to regulate.
GambleFi can be active in online gambling in many places
It is no secret that gambling, or online gambling, is a rapidly growing industry. Wherever there is a lot of money in circulation, cryptocurrencies and their technology are quickly present. Of course, the crypto industry has long recognised the huge economic potential. According to Statista, among others, the global value of online gambling is expected to grow to around $115 billion by 2028. It is already well over US$50 billion.
The applications of blockchain are almost limitless. It can be used for slot machines, card games such as poker or blackjack, other online games or even sports betting and e-sports betting. It is even possible to build entire online casinos on the technology. Such platforms already exist. However, they do not comply with the German State Treaty on Gaming or its requirements.
GambleFi brings online gambling and finance closer together
Together, blockchain technology and cryptocurrencies can ensure that online gambling becomes even more convenient and secure in the future. Depositing with crypto for casino games or sports betting and then processing winnings withdrawals are just two of the many options.
The online games and bets offered on the blockchain benefit from similar security aspects to other applications of the technology. Transparency, high resistance to hacking and anonymity are key factors. You always remain in direct possession of your assets and can move them without long delays. There is no need to establish links to bank accounts or residences..
Where there is a lot of light, there is also a lot of shadow
As with almost all other technological breakthroughs, the crypto industry faces some not insignificant challenges when it comes to gambling. For example, it is still often like the Wild West. The technologies and the products they generate are unregulated. For all the security of the principle, this means an increased risk for the end user - in this case, the gambler.
In general, regulation with age restrictions and player protection measures would be difficult for games of chance based entirely on the blockchain. The technology does not provide for the enforcement of such restrictions.
Conclusion
Like other crypto trends, GambleFi holds great potential for both players and the gaming industry. However, there are some significant uncertainties lurking in the shadows. In particular, the lack of official regulation and the resulting lack of typical safeguards can pose risks to players. For beginners in particular, these risks are not immediately apparent.
These conditions also mean that such a blockchain gambling market will only be established in the illegal sector. Just like casinos and sports betting providers that allow customers to process payments with cryptocurrencies, full blockchain offerings will hardly be compatible with German laws.
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