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The flipside of crypto gambling - Mitigate risky bets

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Since the industry’s explosive growth in the last two years, crypto gambling is all the rage. Keep the following in mind with crypto bets.

Over the past two decades, the online gambling industry gradually moved to become a safer and regulated space for punters around the globe. Technological advances and experience within the online casino and betting space allowed operators and regulators to create processes and laws that ensure protection for players. Regardless, it is still not legal in all regions, and there is still room for improvement within regulation. One of these areas includes crypto gambling.

Although it has taken time for Bitcoin casinos and crypto gambling to become popular, this form of remote wagering experienced marked growth in the past two years. The problem with this is that crypto gambling is mostly unregulated, presenting a list of issues for online gambling and those who want to wager with their favourite decentralised coins.

Yes, Bitcoin and other cryptocurrencies present consumers and online gambling providers with impressive advantages, but like any new technology, it comes with some disadvantages too. The good news is that with the right knowledge at our disposal, it is possible to mitigate the dangers presented by decentralised finance and gambling with it.

Licensed and regulated are not enough

The first step to finding a reputable online casino is to check whether it has a licence to operate in the relevant jurisdiction. With crypto-only online casinos, this is very tricky as most only hold a Curacao licence. Because of unscrupulous operators holding a licence from the former Dutch colony, this licence does not come with the best reputation.

Paired with the regulator’s low expectations of its licence holders, a gambling licence from Curacao is simply not enough to guarantee a safe remote wagering experience.

This does not mean that all Bitcoin casinos with a licence from the region are shady, as some of the best crypto-only casinos hold a Curacao licence.

This means that players who prefer wagering in cryptocurrency need to dig deeper to ensure an enjoyable and secure online gambling experience. Platforms like CasinoWow help by rating casinos and pointing players to the best in the industry.

The good news is that because of the rise in popularity of crypto gambling, many of the revered authorities in iGaming now consider it a priority to create relevant laws for the decentralised sphere of online gambling. Hopefully, leading regions like the UK and major European countries will soon regulate crypto gambling.

Vulnerable spots

Some Bitcoin casinos offer players the opportunity to deposit cryptocurrency, but the platform converts it into standard Fiat money for wagering purposes. It works exactly like foreign exchange and is perfectly legal. The risk involved with this is the extremely volatile nature of cryptocurrency. Although there is always a chance of a gain, the risk exists of a loss, and with the volatility of BTC, players stand to lose a lot.

Crypto-only online casinos allow players to deposit and bet with a range of coins, including Bitcoin, Ethereum, Litecoin, and more. With the straightforward betting system, it is easier to keep track of your crypto, but the downside is the enormous value tied to one cryptocurrency coin. At the time of writing, BTC 1 was worth nearly £17,000, and its counterpart Ether came in at a value of £880 for ETH 1. Considering that most crypto casinos have little to no limits in place, punters stand to lose massive amounts with the simple spin of online slots, not to mention an extended wagering session.

The big attraction to decentralised finance is the anonymity that is possible on the blockchain. Unfortunately, along with this advantage comes the problem of underhanded transactions from money launderers and other criminals. Some crypto-only casinos take the approach of being anonymous themselves, and it is advisable to take extra precautions with these operators, as they are not bound to any regulator, and consumers have no recourse.

Voluntary responsible gambling practices

Due to a lack of regulatory protocols, many operators who provide crypto gambling expose vulnerable players to poor responsible gambling. Unlike other regulators, Curacao does not impose stringent player protection laws, leaving its licensees to take on voluntary responsibility.

This puts the most at-risk players in harm’s way if they choose a crypto casino. Compulsory safeguards imposed by regulators of online casino games allow players to block themselves or use time and wagering limits. Without these tools or effective alternatives, crypto casinos expose compulsive gamblers to severe risk.

Knowledge is power

Understanding cryptocurrency and its relationship with online gambling platforms is essential before deciding to stake with DeFi (decentralised finance). Once players are confident with their blockchain knowledge, the second step is finding a reputable crypto casino through trusted reviews.

Implementing personal limits and sticking to them will enable punters to stay in control of their gambling while the gambling industry works toward a solid regulatory framework for the crypto gambling industry.

Published: June 24, 2022

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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