Staying safe in the world of crypto casinos

The online gambling sector has made rapid strides since its inception in the 1990s and is now valued at over $250bn. Key to this growth has been innovation, including technology such as blockchain and cryptocurrencies in what is being labelled the ‘GambleFi’ market. This is reflected in the hundreds of crypto casinos now operating, as well as the fact almost 25% of all online gambling payments are made with cryptocurrencies.

The global online gambling market is expected to continue its fast-paced expansion with revenue predicted to grow annually by 7.8% over the next five years. The role of crypto casinos in driving this expansion is also increasing, influenced by a range of factors, such as accessibility, reach and speed.  

The speed and efficiency at which crypto casinos operate regarding payouts is also an advantage. In bypassing mediators such as central banks, casinos can not only save costs that can be passed onto users but also complete transactions at an increased speed.

These advantages are contributors to the increasing popularity of crypto casinos but, as with any gambling providers, it’s important to make sure they are adhering to all necessary regulations in order operate legitimately. So, what do users need to look out for?

Licensing and certification

Legitimate crypto casinos often obtain reputable licences from different jurisdictions such as the Isle of Man Gambling Supervision Commission or the Curaçao Gaming Control Board, that are welcoming crypto casinos at an increasing rate. A licence requires casinos to adhere to strict licensing rules to operate legally, establish a framework of trust and professionalism for users and safeguard them in case of disputes. Information and certificates regarding licensing, regulation and compliance should all be clearly signposted for users on a casino’s website.

Fair play

The randomness and fairness of crypto casino games, as well as transparency on these two metrics, are fundamental to casinos’ legitimacy. This can come in the form of more traditional algorithms such as random number generators (RNG) or innovative blockchain technology such as provably fair.

Standard online casinos often use RNG and other third-party auditors to test the fairness of games. While its good practice to ensure legitimacy, this does require users to rely on independent testing bodies as well as the casino’s guarantee that the fairness of games has not been impacted in between audits and games.

If a game is labelled ‘provably fair’, its game result will undergo cryptographic hashing and be stored on the blockchain for the player to verify when the round is played. If the technology is properly integrated into a casino’s portfolio of games, it makes it impossible for the player to be cheated.

Reviews and support channels

Often, first-hand experience can shed light on a platform’s reliability and speed, as well as customer service and overall user experience. Customer service in particular offers a two-way communication channel for casinos to address concerns, and users should be wary of sites with poor reviews in this domain. While not a foolproof means of assessing legitimacy, a positive reputation usually correlates with a crypto casino’s adherence to industry standards and ethical practices.

Given the fast growth of the online gambling sector, and specifically GambleFi, new concerns surrounding safeguarding and regulation will undoubtedly emerge. But, armed with the right research and a keen understanding of key indicators, users can confidently place their bets.

As head of partnerships at Rollbit, Sam Norman is responsible for forging strategic alliances within the cryptocurrency and gaming sector. With an eye for emerging trends and innovation, Norman has overseen many of Rollbit’s impressive partnerships, including its recent collaboration with Italian football club SSC Napoli.