Bitcoin and online gambling. Analysis and predictions from CASEXE expert
- Ivan, you’ve previously made presentations at the industrial conferences, speaking about using Bitcoin in online gambling. Could you tell us, who are gamblers making bets with a cryptocurrency?
Majority of such players are young people. Up to 70% of players can be referred to age category of 18-44 y.o. Average age is 32 years. About 90 per cent are men, although female audience is increasing. Same trend that is seen in the classic online casinos – at first, the majority of players included male, but now 55 per cent of the audience are female. Most Bitcoin players live in North America – USA and Canada. These countries engage up to 50% of the total audience. 30% more are concentrated in Europe. So, up to 80% of the market is focused on the developed Western countries.
- Let’s talk about what drives them to use cryptocurrency in gambling.
I can name a few main advantages of playing with bitcoins: instant payouts; anonymity; guarantee of a fair game; low cost of transaction; security; decentralizing. These factors make Bitcoin almost a perfect tool for online gambling.
- Let’s talk about each of these factors in details.
Well, all operators today face delay in payout of deposited funds to players. Casino sends a transaction on player’s first demand, but payment systems make a delay to check if it’s legal and comply with other regulating requirements. Delay time may last from one day to eternity. Bitcoin makes it easier; transaction is done instantaneously, it depends on the amount and deal parties.
- I understand anonymity – owner of the wallet can be defined only theoretically. But how to solve the issue of a fair game?
There’s a special system - Provably Fair. It is built on the same math principles as all the Bitcoin system. Not to bore you with complex technical details, I’d only note that Provably Fair guarantees that operator is using a random number generator. Player can be 100 per cent sure that his win depends on the luck, and result is not known beforehand. And as for anonymity, it’s generally possible to identify a wallet owner, but it’s very difficult, one has to use possibilities and technologies of something similar to secret services in the leading countries. That’s why, 99% of times it’s impossible.
- Interesting. And what about the security and decentralization?
Fraud from both sides is absolutely impossible when working with Bitcoin. Player can be assured that there’ll be no data leak or ‘freezing’ of deposit from operator. Moreover, players are secured from any sanctions from the regulator.
- And what about games? There’s a trend of moving from classic slots towards new types of games nowadays.
This trend is more distinct in Bitcoin casino segment. Players are actively involved into latest high tech innovations, and keep up with the news. They want to see new and better games. On the other side, they are disciples of the certain sub-culture emerging from cryptocurrency. Not so long ago Endorphina launched the first slot devoted to a mysterious creator of bitcoins – legendary Satoshi Nakamoto. Statistics show that this slot - Satoshi’s Secret - is the most popular product in all bitcoin casinos.
- And what about our gamblers? In the former USSR countries slots form local providers seem to be the most popular?
I don’t know about other providers, but CASEXE platform allows to integrate any slots, independent from the developer company. For us, the player’s choice of games and currency for bets and deposits is pursuable. We can simply integrate all software into one platform and ensure secure functioning of the solution.
- How much of fiat money and cryptocurrency bets are there in online casino sector?
Today Bitcoin is already taking up to 15 per cent of the market and continues to grow. Although the amount of Bitcoin wallets is relatively small – less than 5 million – it’s increasing as well. There’s a rapid growth dynamics – at the end of 2014, there were about 2,5m users, and in less than a year this number increased to 4,5m.
- Now let’s head over from theory to practice. According to your data, the best prospects are there for casinos operating on the Asian market and focusing on the female audience.
Not exactly. I’d recommend operators to launch projects with a global focus, without a special tie to a certain region. Create a quality platform, gather interesting games, establish all processes and everything should be ok to go. And if you invest in marketing, sure, you have to look at the North America and EU, most of the audience lives there.
- So launching of Bitcoin casino focused on the CIS market is a knowingly failing project?
I’d put a question in another way. Regional online casino is a thing of the past. For example, CASEXE platform allows to track the geographical location of player and automatically transfer him/her to the necessary website page. Gambler from CIS sees Russian interface, a guy from the US – English page. Also, I’d recommend operators not to abandon fiat money completely. Why limit the audience? Technical possibilities for operating with different kinds of payment tools are already there.
Full version of the interview - http://newsofgambling.com/intervyu-ivan-kondilenko-casexe.