The Role of Cryptocurrencies in the Gambling Industry

The gambling industry has come a long way since the early 90’s and the way clients pay to get in has changed drastically. There once was a day when nearly every bookmaker on the internet would gladly accept MoneyGram and Western Union, and vice versa on the payouts. This is no longer true and quite the opposite. There are very few online bookmakers that are accepting either of these methods and most of the reputable bookies are now looking for Cryptocurrencies as a safer, more efficient solution for client deposits. MoneyGram and Western Union have taken themselves out of the market for a clear-cut reason; money laundering. Money laundering is a massive global problem and it’s the last thing bookies want caught up in. Reputable bookmakers steer clear of any financial discrepancies and what they are finding; cryptocurrencies are on the rise.

  • What is cryptocurrency?

Clinical Definition: “A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”

~(Online Dictionary)

  • What is the most widely used cryptocurrency around the gaming world?

*Without question its Bitcoin. Bitcoin has fast become the number one deposit method for not only the largest online sportsbooks but the smaller, lesser known guys as well.

  • Bitcoin is considered to be the largest cryptocurrency in the world and has literally taken the gaming industry by storm.
  • Why has Bitcoin become popular with bookmakers?

*There are several reasons, but the number one reason would be what we talked about above, MoneyGram and Western Union are no longer a reliable source for bookies or gamblers. The limits are low, and the cutoffs are quick. Western Union has quickly become a dinosaur in and around the entire gaming world. They limit deposit amounts, they limit the number of times per month that an individual may deposit and then they will cut off the depositor completely. Both Western Union and MoneyGram view offshore depositors with an eye of skepticism. They have simply stopped doing business as they once did.

  • How does Bitcoin Work?

*In order for a client to use Bitcoin, they must have a Bitcoin e-wallet. The client will have an account and either use a mobile device or a PC. Once the client has secured Bitcoins in his wallet, they can then make payments to merchants with the use of an exclusive address for the recipient The process is easy, quick and comes with no hassle.

  • Why not use credit cards?

There are more than a few reasons to not accept credit cards from your gaming clients and the first and foremost reason would be chargebacks. Anybody that has ever been apart of the sportsbook-gaming industry at large, they know and can attest to the risk of accepting credit cards. It’s no lie, credit cards are quick, easy and certainly a fast way of getting the money in, but the financial loss can outweigh the gain. The “big timers” they can afford the losses, and you can believe, they take huge losses.

  • Credit card losses happen like this… New clients that have never deposited will call a sportsbook, they will make a deposit with a credit card and then they will bet, then they will lose, what happens next is a call to the bank (the credit card company), they lie to the bank and tell them they don’t recognize the charge, or they claim their card was lost or stolen. Nine out of ten times, the bank will offer a provisional credit and eventually charge-off what was a false claim of fraud. The banks will always give their clients preference over an off-shore gaming establishment. Many bookies disguise their merchant name, so as to show no correlation with any type of gaming. This changes nothing, a chargeback is still a chargeback. The banks nearly always show preference to their client.
  • Credit card processors cost a small fortune and effect the bottom line of a small business. It’s not cheap to find a processor that will work with your business model and comply with what you do. Again, you can disguise your business and call it “corn farmers of Iowa” but why do business this way? What a hassle and a giant headache.

There is no questioning the value of cryptocurrency and Bitcoin. Bitcoin has been around since 2009 and is by far the most widely traded cryptocurrency. You will benefit greatly from adding this tool to your deposit, and payout arsenal. Clients love Bitcoin and have become increasingly more and more adept to using it and understanding it. You do not have to be a Bitcoin expert , not at all, you do not have a need for the knowledge of how Bitcoin is mined, or how it’s traded. Forget about that. Call your PPH for help and they can give (will be glad to give) free advice and pointers as to getting started with accepting Bitcoin. The beauty of Bitcoin is your clients will not be turned down. When they want to deposit they deposit with no hassle, no calling the bank, no crazy security checks from the credit card provider, just acceptance.

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