Crypto Casinos Are Booming — But Only Certain Coins Survive

With the new rise of crypto being brought into online casino gambling, many coins are gaining traction. This new evolution brings players a new level of security, trust, and transparency— in turn building trust with the casino. With that said, casinos have to be selective when allowing which coins they allow, and that is what this article will go over— let’s start by defining  what a gambling cryptocurrency is first, and then we can move onto what makes one fit for casinos.

What are Gambling Cryptocurrencies?

Due to the rise of crypto, many casinos have adopted wagering tokens as a way to up the stakes. This allows players to wager with blockchain-based payments or casino tokens, rather than traditional fiat— offering decentralized gambling and blockchain technology.

Many players enjoy using these tokens due to the secure environment that casinos offer, as well as the fast transactions offered by using the coins. These tokens are the new way for players to wager on various outcomes and are designed to be used on the gambling sites themselves.

As crypto users explore the tokens and currencies, these coins aim to give users full control over their funds (before a deposit) by using encryption technology and make it a versatile choice. But why are these coins being chosen? Is it due to the popularity around them or due to the simple fact that they have a high reputation standard they hold? Let’s go onto how coins are chosen and the criteria casinos set for these coins.

How are Coins Chosen?

Casinos do not just allow any coin to be used to gamble with. So what are the standards that need to be met in order for a coin to be used at a casino?

Wallet Support

Many casinos rely on wallet addresses and third-party support, so relying on a well-integrated wallet matters. If the coin is not supported by mainstream infrastructure, then it can become a headache for casinos. Wallets that casinos deem easy to deposit and withdraw to are key factors into what coins they allow, and if the coin is not supported for that wallet, then it is most likely not going to be accepted by the casino.

Transaction Speeds

Fast and easy transactions are not only what users are looking for, but casinos as well. They understand what the users want, and that means instant transactions and, in some cases, smart contracts. Many coins will be rejected if they are known to take too long to confirm, have high transaction fees, or get congested and clogged during peak hours of usage.

Market Stability

This is one of the most important reasons that can either be accepted or rejected. Casinos need coins that are able to be easily converted into fiat payments and sold without collapsing the market all together. Casinos don't want to allow coins that have a low trading volume, high volatility, and thin exchange support.

Security History

Another reason a coin may not be chosen is simply due to the fact that, in the past, the coin's security has lacked due to past exploits or unstable consensus models. Casinos hate when things change and get reorganized, and when there is a chance of it being attacked. The security of the coin directly correlates to the security of the casino. If a coin lacks security, then that brings down the casino with it.

Regulatory Risks

Strange to say, but even casinos keep regulators in mind. If they believe a coin does not comply with their standard or regulatory measures, they will not allow a coin to be used. Exclusion can be due to a coin being privacy first (such as Zcash and Monera), could be seen as a money laundering scheme (many casinos participate in AML protocols using KYC), or lack transparency when tracking past transactions. Some casinos still allow this, but most reputable casinos won't let this slide.

Player Demand

After their standard, the casino then measures how well it works in terms of popularity. If many crypto users are talking about a specific coin and directly say that it is the coin they enjoy gambling with, and it gains traction, then it is most likely going to be offered at casinos. Only after said coin goes through the basic standards set by the casino. This is a factor they keep in mind, but does not mean that just because the community wants it the casino will allow it.

Operational Costs

Just like any business would, they factor in the cost and weigh their options. They factor in all the risks and computed resources needed for a coin and decide, "Would this coin bring more value than it costs in resources to support it?" If not, then it most likely will not move onto being used at the casino. Coins that add extra accounting difficulty or even extra customer support and knowledge will not make the cut in the end, so the simpler the better.

Conclusion

Just because the coin may have a hype around it does not mean that it will be chosen to be used in a casino. Hype does not equal accepted, in this case. The bottom line is casinos prioritize having coins that are less volatile, more secure, more reliable, and are fast and cheap to integrate into their institution. As crypto casinos grow, the list of coins being accepted may grow with it, but coins first need to meet the standard that is set for them.