The online gambling industry in the United Kingdom has never shied away from adopting necessary innovations. When online casino gameplay began to go mobile, the UK industry was one of the earliest to provide mobile-optimised games. This trend is why many are closely following the adoption of blockchain technology and cryptocurrencies in the UK casino industry.
What is blockchain betting?
Conventionally, when players want to use a platform, they have to register with identities that have to be corroborated on a government-approved means of identification. Also, making deposits or receiving withdrawals would entail using confidential bank details.
However, blockchain or crypto betting offers a solution. Blockchain betting uses decentralised technology to run some aspects of a casino game, such as handling transactions. Blockchain casinos make use of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) in processing deposits, withdrawals and, on certain occasions, the gameplay itself, where crypto APIs are used in building apps. This takes away reliance on traditional banking methods or storing data on centralised servers.
One advantage that blockchain betting comes with is that it allows players to verify the fairness of every outcome during gameplay. Games can be tried and proven to be fair using special cryptographic tools.
Why are players choosing crypto betting?
Beyond the buzz that comes with new technology, players who choose crypto betting have several solid reasons for their choice. Let’s look at a few of those reasons:
- Speed: When you are playing a slot game and run out of balance, you would want to quickly top up your balance so that you can continue. However, making deposits with the services of many traditional banks does not promise an immediate response, as you may have to wait a while before it appears on your dashboard, unless you use pay by mobile services like PayForIt and Fonix. Crypto transactions, on the other hand, can be near instant, which keeps players happy.
- Anonymity: Many players prefer to play under the guise of anonymity, but conventional platforms would require one to present their government-acknowledged means of identification. For crypto platforms, users can register with minimal personal information.
- Security: Centralised data centres have been a target of cyber-attacks for ages, where a single breach can result in colossal losses in customer trust, user details, and even funds. Blockchain’s decentralised feature makes these attacks difficult to perform because it takes several nodes in a network to store and adjust data. Also, encryption features make it difficult for funds to be stolen, making crypto casinos a secure gambling option.
- Lower fees: Many traditional banking methods charge transaction fees per deposit or withdrawal. While the initial transaction costs may be low, over time, they amount to significant costs. This is why crypto transactions are preferable; the fees are lower.
- International play is more seamless: Due to the decentralised nature of crypto platforms, many players can pay and play without border restrictions. For players in the UK who want to participate in global competitions, this is one benefit they will appreciate.
What are the legal implications of crypto use in UK online casinos
The explanation is not exactly black and white. Note that the UK Gambling Commission (UKGC), which oversees the gambling industry in the UK, is one of the strictest regulatory bodies in the world. At the moment, they have yet to fully embrace crypto technology.
That pretty much explains why most UK-licensed online casinos do not use crypto deposits directly. This is partly because while crypto-based operations protect anonymity, UK-licensed casinos have to meet Know Your Customer (KYC) guidelines.
In addition to these, crypto casinos that operate fully on a decentralised network or are not registered in the UK are hardly under the jurisdiction of the United Kingdom Gambling Commission. These issues make crypto casinos and their operations a matter of legal grey areas for players in the UK.
All these, however, don’t rule out the fact that some licensed online casinos in the UK do accept crypto payments. To process these transactions, the crypto platforms have to use third-party services. This allows players to convert crypto to fiat before they can use it on the gaming platform.
How are casinos in the UK adapting to crypto use?
Despite the legal uncertainties surrounding crypto casinos in the United Kingdom, some platforms are already finding ways to adopt crypto-based technologies.
One option on the table is the addition of cryptocurrencies as a payment option, which can be converted to British pounds upon deposit. Another option is to partner with blockchain providers for game verification tools. Although it’s still a topic for the future, we may see hybrid casinos that allow players to use both fiat and cryptos directly on the platform.
The reality is that interest is growing, and demand is gradually increasing. Although full-blown blockchain casinos are not common among operators licensed under the UKGC, the growing demand may force regulations to evolve towards accommodating full-blown crypto operations.
What’s limiting mainstream adoption in the UK?
There are a few reasons why the UKGC, a few stakeholders, and even players have had cold feet towards full adoption of crypto-run casinos. Let’s look at some of them:
- Cryptocurrency prices are not steady. They can fluctuate dramatically except for stablecoins. This volatility can be a huge risk for players and operators.
- It may be too complex for new users to adapt quickly. That’s because they would have to understand how to set up wallets, secure passkeys, or how fees work.
- Most regulated platforms have features to protect responsible gambling, but the anonymity of crypto casinos makes it difficult to identify and track gambling behaviours that regulators are out to monitor.
- Some money laundering cases have been tied to cryptocurrency use, and regulatory bodies are cautious to avoid legal implications.
Despite these hurdles, there are strong indications that with time, we may see more crypto-based casinos in the UK. However, it must be facilitated by clearer and more crypto-friendly regulations.
The future of crypto gaming
Cryptocurrencies are no longer vague concepts; they’ve worked their way into modern payment systems, and we’re now seeing a gradual entry into the UK gambling space. While we cannot accurately say that the moment blockchain betting becomes mainstream, the foundation is already being laid.
In the near future, it is expected that increased player demand, technological advantages, and the potential for greater transparency might force the hand of regulators and operators to make crypto casinos more readily available.
Apart from that, if you want to know more about 3 essential ways to keep your online casino payments secure then visit our Gaming category.
