Blockchain and Gambling: Casinos are benefiting from quicker payments

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There have been a rash of articles lately, touting the benefits of blockchain technology and then showcasing commercial entities from all walks of life and every sector imaginable that are enjoying its benefits, except for one – online gambling casinos. Somewhere in this industry, someone in the back office experimented with what has been heralded as the greatest innovation of our time following the Internet and soon discovered that enhancements could even be made in this profession.

Reporters at noted that:

Strange as it may seem, many forms of technology have come and gone but none have been able to change the Gambling industry like blockchain technology. Blockchain technology has created a new paradigm where the gambling industry is coming into its own with new and innovative platforms that have been able to [enable] all kinds of options that the average gambler can see and enjoy.

One constant problem has always been the ability to take deposits and to distribute funds related to withdrawal requests. If any online gambling website wants to broaden its breadth across the globe, the first obstacle is to find the best payment providers that will offer consistent service to their new region of the world. For that reason alone, when you check out a prospective site, you might be confronted with dozens of ways to make a deposit, many of which will not work when you want a refund or withdrawal.

Consistency is often wishful thinking, as well. Whether you use a plastic card, a wire transfer, or some other medium of exchange, there is always an originator, a receiver, and countless, unknown intermediaries, all wanting their piece of the process and associated fees, many deducted without any notification. At the end of the day, it is a miracle the system works at all. Expectation levels are low. If you are acquainted with the process, you are happy to have something complete the circuit on a timely basis. If not, then you wind up in lengthy disputes and arguments with customer service reps.

There is a reason why Ripple Labs and its “XRP” token want to revolutionize cross-border payments, but casinos have already jumped beyond their business model. On the deposit side of the transaction, if you have an account in Bitcoin, Ether, or Litecoin, the most widely accepted coins on the Internet, then all a casino has to do is give you an address in the correct token of exchange.

It is then your responsibility to contact your exchange and make a transfer to the casino’s account address. As soon as confirmation is received, which may only take a matter of minutes or a few hours, you are in business – “Good funds” have been delivered, with no confusion or deductions or waiting days for a green light.

The same is true for withdrawals. The same path is used in reverse. When confirmed by your exchange, you know you have “Good funds” in your account. The deposit is final. No issues with hidden fees or amounts or chargebacks, which are common on credit cards. The money arrives on the same day, as expected, without being lost or hung up in your bank because the originator did not enter every bit of information correctly. A simple typo can send a wire transfer to a “suspense” account, which could take a week or two for a reconcilement clerk to repair and send it on its way.

What is next for blockchain, cryptocurrencies, and casinos? The next five years will be very interesting, but existing payment providers may have already lost a lucrative part of their cross-border traffic to an innovative casino operator and the blockchain.

More about blockchain and gambling can be found here:

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