Crypto corner: Operators need to change their priorities

Every operator likes to appeal to as broad a player base as possible through game studio integrations while back-office integrations are seen as a lower priority. However, in doing so operators are not only potentially turning their back on millions of prospective customers, but they’re also denying themselves the ability to increase their profitability – reduced manual interventions with processes such as KYC, lower processing fees and the small matter of totally removing chargebacks.

The integration and utilisation of crypto is a lot simpler than some may think. Rather than something seismic, it should be considered for what it is – a new currency that’s used for in-game credits.

Barrier to entry

Incumbent operators are more established and already have a pre-defined roadmap of developments and integrations. We know how many game releases there are going to be every month, so it can seem like tech teams are at full capacity just trying to keep up. Other considerations they may have include regulatory requirements from the jurisdictions where they are licensed, as well as new banking relationships that could be required. Entry into crypto is the same for all operators – it is internal prioritisation that creates barriers.

Adoption

Rumours on the grapevine suggest major players such as PayPal, Visa and Apple all plan to eventually integrate cryptocurrencies. It is inevitable that, like all good ideas, more mainstream brands will adopt them. Big brand endorsement generally brings with it enhancements in perception and trust for a product, thereby increasing utilisation and leading to greater company interest and participation. This in turn brings more choice to consumers and improves quality. Essentially, it’s a win-win all round.

Retail

Retail adoption has been slower but is happening, gradually. For example, in the Isle of Man there are pubs, restaurants and even taxis that accept crypto as a payment method. We are tipping into the early majority adoption point on the bell-curve and this is to be expected for new technology. Admittedly, it’s not yet widespread, but I believe this goes back to the traditional banking industry.

Until we get to the point where high-street banks admit that crypto brings significant advantages to everyday life, slow adoption is inevitable. Consumers want to use their crypto for everyday transactions but are hindered in their ability to do so.

Demographics

It is evident that people who participate in this type of activity are largely indifferent to what mechanism is used to facilitate their wagering. If the value of every wager is clearly displayed, easily understood and, if wagers aren’t made in traditional currencies, how a player converts from wagering currency such as casino chips to real money is clear, then the rest is pure mechanics.

In the gambling sector, it is unsurprising that Gen Z have proven to be the early adopters. However, not all in this classification are yet of legal age to gamble and this serves to emphasise another benefit of blockchain. The exceptional security surrounding player accounts, when combined with an operator’s internal procedures, can eliminate fraudulent accounts.

Security

Online casinos don’t traditionally have physical cash reserves in hard currencies, so all finances held are in digital form. Forex hedging is already commonplace within international businesses and crypto exchanges are being used in an increasingly extensive way. The safety and traceability of transactions are significantly enhanced by the very nature of them being on the blockchain.

Cashless society

As technology continues to evolve, the way we transact within it does too. The recent pandemic expedited our transition to a cashless society. Businesses adapted their way of working and caught up with online-only establishments. As general consumers become more comfortable with the notion of their finances being digital rather than physical , the lines between the dollar, euro, and pound will continue to blur.

Currencies, regardless of whether they are traditional fiat or new crypto, are units. As the world continues to evolve, what you spend becomes less about the currency denomination, and more about the unit value.

Simplicity

One of the key attractions of crypto betting is that significant changes aren’t required – games providers enable the in-game display of the bet and win amounts in units (.01, .50. 10). Payment processors and operators back-office systems are already able to facilitate multi-currency deposits and withdrawals. Incorporating crypto is as simple as adding a conversion factor into your accounting package.