Online Casinos could be reducing Operating Costs with Bitcoin
Any online casino, no matter how big or small, uses the process of monetary transactions. This is both the way customers deposit money on their accounts and how they withdraw any possible winnings. In the traditional banking sector, these usually occur either by credit/debit card payments or through money transfers. Both of these come with a hefty price tag for the casino. However, if a casino utilizes cryptocurrencies, the same cost can be drastically lowered. In fact, this fintech solution can potentially lead to a reduction of upkeep costs that would immensely impact the bottom line of any casino and in turn, the experience its players can have.
Adoption among Casino Operators
It might seem that online casinos have little to lose with the adoption of cryptocurrencies among the currencies they accept on the platform. In practice, the truth is that many casinos continually pass on this opportunity in spite of the facts that, for example, bitcoin transfers cost only USD cents, if anything. On the other hand, credit card providers often charge as much as three percent of every transaction. Additionally, the same companies sometimes employ the chargeback system which can be up to one percent of all transactions.
A further setback is the credit card waiting period which is usually around 14 days. In case of a cashback issue, credit card companies charge an additional 10 percent. The same values are not universal. The credit card company can instead determine the same costs based on the assessment of the risk related to an operation. For online casinos, the same risk assessment is rarely low.
The first and clearest benefit has already been stated – cryptocurrencies like bitcoin include fast and cheap transfers which allow the casino users to pay practically instantly. Secondly, being that many cryptocurrencies are completely decentralized, they can be used in a manner similar to cash. This means that there is no possibility for a chargeback procedure. While these are sometimes used legitimately, disgruntled gamblers have been known to baselessly accuse an online casino of theft to try to get their spent funds back.
In fact, the lack of chargeback alone is an incredibly important advantage. Today, many casino operators see these instances as some of the biggest threats to their bottom line profit. In turn, less fraudulent chargeback demands mean that the casino operators can lower the scope of their fraud detection systems and save money thanks to this scaling down process. The same savings can then be focused on the player acquisition and improving the general visitor numbers to a casino.
Fighting the Downsides
When it comes to the cryptocurrency downsides, there should be no illusions – they have their share. Bitcoin, like most other cryptocurrencies, is highly volatile. In theory and under the righ conditions it could be erased in a day in terms of its value. There is no central body that could regulate it in any shape or form. Finally, it still faces an uphill battle against the regulatory agencies in most countries.
Yet, these are just a part of the wider cryptocurrency setup. Online casinos can have automated processes that use their bitcoin winnings and immediately transfer some or all of it into fiat currencies or even to some other cryptocurrency. The crypto fund that the casino makes could be hedging itself automatically against the same volatility. This could include a part of the bitcoin funds immediately being transferred into litecoin, for example. As adoption of cryptocurrencies grows, these methods will only multiply.
Keeping Fiat, Adding Crypto
Lastly, the issue of using cryptocurrencies at online casinos is not a question of choosing one or another. Instead, the operators should simply include it in their offer of the supported currencies. With that decision, they have nothing to lose and plenty to gain in the long-term business development of their gaming venture.