Throughout the years, the online poker industry has managed to evolve and adapt to a changing technological landscape, and changing consumer habits and demands. The latest evolvement includes the adoption of cryptocurrency. Since the first cryptocurrency was released in 2009, crypto has grown in significance and impact in the financial market and beyond. Now the turn has come for the online poker industry to adopt digital currencies like Bitcoin, Ethereum, and Litecoin, which is both benefitting operators and players alike. Just in 2021, $92 billion in crypto was spent on online gambling, which reflects the increasing popularity of integrating cryptocurrencies with online casino platforms. Not only does it bring convenience but is has also increased the level of security and privacy. Cryptocurrencies, and the underlying blockchain technology, are impacting the game of online poker and casinos, and is shaping the future for this industry.
The rise of crypto in online poker
For many poker players, cryptocurrency has become a preferred transaction method. There are especially three factors causing this preference: The speed, lower fees, and unparalleled anonymity which cryptocurrency can offer compared to traditional financial systems. For operators of online poker sites, crypto payments have been an effective way to address various challenges faced by the online casino community, including deposit and withdrawal times. This is largely becoming relevant for an industry that keeps booming: According to a report from Grand View Research, the global online gambling market size is expected to reach $127.3 billion by 2027, and as of data from 2023, 60% of Bitcoin transactions relate to gambling.
According to data from 2024, blockchain-based poker rooms are favored due to their efficiency. One example is the withdrawal processing time, which can be facilitated within minutes, compared to the days it can take for conventional banking systems. This feature is especially beneficial in online gambling where instant access to winnings is a crucial component in enhancing user experience. For players who are playing poker with crypto, the selection and variety of casino sites have been steadily increasing the past years. With the large selection, it can be overwhelming for players to navigate the crypto options available. This is why the link takes you to an overview of the best crypto poker sites in 2024, which is updated for each month of the year to stay updated and relevant for players to navigate. With this overview, you get a review of a select variety of platforms, which gives you insights into the features and benefits of each site, making it easy to compare and contrast the sites. Hence, you can find the right crypto casino platform for your preferences.
The speed factor: Fast transactions in crypto poker
Many players of online poker can probably recognize the hassle of long wait times for financial transactions when using conventional banking methods when playing poker online. These conventional methods include credit cards and bank transfers and using them can delay game participation and access to funds. This is where cryptocurrencies play a pivotal role, as crypto enables near-instantaneous deposits and withdrawals.
The reason for this enhanced speed is the underlying technology of cryptocurrencies, namely blockchain technology. Cryptocurrency transactions are recorded on a decentralized blockchain ledger, which ensures prompt execution. The various cryptocurrencies such as Bitcoin, Litecoin, and Ethereum are recorded on their own decentralized blockchain ledger, some being faster than others. But even with slightly slower networks, the process of payments is still faster than most banks. Since there is no longer a need for intermediaries to approve transactions, operations become faster and more time-sensitive, an advantage for players.
Enhanced security through blockchain
Since the early days of online gambling, security has been at the core of operations. According to data from the Federal Trade Commission, consumers reported losing more than $10 billion to fraud in 2023, underlining the importance of security for online transactions. Both hacks and data breaches continue to be pertinent threats, which operators have to take seriously, as players need assurance that both their funds and personal details are protected. Blockchain technology has revolutionized the ways and level of security that can be provided by online gambling operators, as blockchain technology offers an extra layer of protection. Cryptocurrencies use cryptographic techniques resistant to tampering and fraud. This is made possible since every transaction is recorded on a blockchain, which is a public ledger preventing unauthorized changes. Compared to traditional payment processors that are vulnerable to data breaches, crypto transactions are designed to be highly secure.
Another component adding more security for players is digital wallets. These enable players to have more control over their funds, which reduces the risk of cyber-attacks on centralized platforms. Blockchain technology has also enabled crypto poker platforms to implement provably fair games. By leveraging blockchain technology, transparency and fairness is ensured as players can verify that outcomes are random and not manipulated. With such a setup, player confidence is boosted, while it also makes it harder for platforms to engage in unethical practices.
Anonymity: Playing poker privately
Another desirable feature of cryptocurrency in online poker is the degree of anonymity that it provides. In traditional banking systems, transactions are traceable and linked to personal identities, which makes it easy to track and take advantage of. According to data from Exploding Topics, 85% of global adults want to do more to protect their online privacy, and according to Embryo.com, 77% of people are concerned about how their data is used online. In other words, consumers have become more aware of their data online and the need to protect it. It is the risk of data breaches that is the root of privacy concerns, especially for players who would prefer keeping their gaming activities discreet.
This is where cryptocurrencies have changed the game, as players can maintain a higher level of anonymity. Through decentralized digital wallets, it is possible for players to play without revealing sensitive personal information. Some platforms can still require identity verification for regulatory reasons, which means it is not complete invisibility, but it still limits visibility of transactions. This has especially become a desired feature for high-stake players valuing privacy, and people who live in regions where online gambling is either heavily restricted or monitored.
Lower transaction fees for cost efficiency
Beyond speed and security, there are also financial benefits related to using cryptocurrencies for poker and online casinos. Higher fees are often imposed by traditional payment processors and banks, which is especially the case for international transactions. But in comparison, cryptocurrencies come with lower costs, as blockchain technology eliminates the need for middlemen or third-party intermediaries. This is what reduces the transaction fees considerably. When online casino sites accept crypto, they can pass the savings on to players, which offers more competitive pricing, higher payout rates, and better bonuses.
The borderless nature of cryptocurrency transactions has also become a desirable feature for online casinos. As blockchain and cryptocurrencies are decentralized, they are not tied to a geographic location. Hence, cryptocurrency transactions are global and not subject to exchange rate fluctuations or cross border regulations. This is making crypto ideal for international players, and it is this ease of use that has made online casino operators embrace digital currency. Take this example from Croatia: When someone sends $1,000 abroad using the Bitcoin network, they pay approximately three times less in fees than by using traditional banks in Croatia. This example highlights why cryptocurrency is desired both for casino transactions and for international players.
The future of crypto and poker
Looking towards the future, the integration of blockchain and cryptocurrency into online poker and casino sites is expected to advance further. Hence, experts predict that there will be a further increase in decentralized online casino sites and poker rooms, where players have more control over how games are conducted. With such a decentralized approach, platforms can become more democratic and user-driven, as players gain a more active role in the execution of games and the level of fairness. This can evolve into setting new standards for the online gambling sector.
However, the further integration of crypto and online casino is not without challenges. The volatility of cryptocurrencies can both affect players and operators, since winnings can diminish in value without notice. Furthermore, the legal status of crypto gambling is still evolving, as the legislations surrounding online gambling and cryptocurrencies still varies from region to region. However, these challenges do not take away the obvious benefits of speed, security, and privacy, which is what keeps being attractive features for online poker players and online casino sites. Due to the consistent consumer demand and increasing adoption by online casino operators, it is expected that regulations will catch up with the ongoing trends, while technology will mature. As a result, the gambling industry could see a bigger shift towards digital currencies.
Concluding remarks
As it has become evident in this article, there are many beneficial features which has fueled the adoption of cryptocurrencies by online casino sites. From speed and efficiency to security and anonymity, cryptocurrencies and the underlying blockchain technology hold promising features that can further be developed to benefit the online casino industry. As more players are seeking out crypto casinos, regulations and legislations around the world are trying to catch up with the needs and demands of consumers, which is yet another enabling factor for crypto casinos to thrive on the market.
