How Do Crypto Casinos Work?
One of the best use cases for cryptocurrencies is online gambling. Many crypto-centric casinos offer anonymous accounts, instant withdrawals, and low transaction fees.
But how do crypto casinos work? Read on – we explain everything you need to know, including the crypto payment process, types of games available, what bonuses to expect, safety concerns, and much more.
The Basics of Crypto Casinos
In many ways, crypto casinos are similar to traditional gambling sites. Players need to register an account, deposit funds, choose their preferred game, and hopefully – withdraw their winnings. What’s more, many crypto casinos use the same software providers as conventional providers. This often includes games from Evolution, NetEnt, Betsoft, and Hacksaw Gaming.
However, there are some clear differences between crypto and regular casino sites. For a start, crypto assets aren’t defined as legal tender. This is where regulations become slightly unclear, as crypto payments aren’t covered by existing gambling laws. In turn, crypto casinos typically don’t have a KYC process.
This enables crypto casinos to offer anonymous gambling accounts. Another unique aspect of crypto gambling is the speed of payments. In particular, withdrawals are often processed automatically. This means that from requesting a withdrawal to receive the winnings, payments take minutes.
Deposits and withdrawals are made on a wallet-to-wallet basis. This offers an extra layer of security on deposits, as transfers are made externally. Players can also avoid privacy risks when gambling with a crypto casino. Without needing to provide personal information or a government-issued ID, the risk of data hacks is removed.
How do Cryptocurrency Casinos Work?
Still asking the question – How do crypto casinos work?
Here’s an overview of how the process works:
- Registration: After selecting a suitable crypto casino, players need to open an account. The best Bitcoin casinos simply ask for an email address and password, and possibly a username. This is unlike regular online casinos, which are legally required to collect personal information.
- Deposits: Players can often choose from a range of popular cryptocurrencies when making a deposit. This typically includes Bitcoin, Ethereum, Tether, Dogecoin, and Litecoin. After selecting a crypto, the casino will display the unique deposit address. Players need to transfer the cryptocurrencies to this address from a private wallet. Payments should be credited in a couple of minutes.
- Playing Games: Leading crypto casinos offer thousands of games from reputable software providers. This can include slots, table games, live dealers, video poker, and even sports betting. Some crypto casinos also offer ‘provably fair’ games, which are backed by blockchain technology. More on this later.
- Stakes: Knowing how much you’re staking in cryptocurrencies can be challenging. With this in mind, crypto casinos usually convert stakes to US dollars (or a preferred currency). For instance, instead of staking 0.00023 BTC, you can type in $10.
- Withdrawals: The biggest benefit of using a crypto casino is that many offer automated withdrawals. You’ll need to provide your crypto wallet address. This is where the casino will transfer the funds. In most cases, the tokens should appear in your private wallet in a few minutes.
Technology Behind Crypto Casinos
Most crypto casino games are supplied by traditional software providers. These are the same providers that supply games to regular gambling sites and land-based casinos. Examples include Microgaming, Hacksaw Gaming, Pragmatic Play, Evolution, and Betsoft. Some crypto casinos also host progressive jackpot slots that link with hundreds of other platforms.
That said, there’s also growing demand for ‘provably fair’ games. These leverage blockchain technology to guarantee fairness and randomness. Provably fair games take a seed from both the player’s and the casino’s server. This creates a unique hash, which generates the outcome of each game.
Games offered by provably fair Bitcoin casinos can be independently verified on the blockchain. This isn’t the case with traditional software providers, which are audited by centralized gambling bodies.
In terms of payments, Bitcoin casinos use the same system as crypto exchanges. They’ll generate a unique deposit address for the respective cryptocurrency. The player will then transfer the tokens to this address. Everything is automated, meaning the player’s balance will automatically update. This usually only takes a few minutes.
What is the Size of the Crypto Casino Industry?
- Due to the unregulated and private nature of crypto gambling transactions, assessing the market size can be challenging.
- Nonetheless, according to a MarketsandMarkets report, the crypto gambling industry was worth $4.6 billion in 2022.
- The report estimates that this will increase to $65.7 billion by 2027. This represents a huge CAGR of 70.3%.
Benefits of Playing in a Crypto Casino
Let’s explore what benefits crypto casinos offer when compared to traditional gambling sites.
Anonymity and Privacy
We mentioned earlier that cryptocurrencies are not defined as legal tender. This creates a so-called ‘regulatory gray area’. After all, if digital assets aren’t treated the same as fiat money, they’re not covered by existing gambling legislation.
The result is that crypto casinos can offer anonymous and private accounts. This means no personal information is needed when opening an account. No ID verification documents will be required either.
Most crypto casinos only collect an email address from players. The best Telegram casinos, which also specialize in cryptocurrencies, offer enhanced privacy. This is because players aren’t required to register an account.
Quick Deposits and Withdrawals
Crypto casinos are known for their fast deposits and withdrawals. Bitcoin deposits are usually credited in about 10 minutes. Altcoin deposits, such as Ethereum and Tether, are even faster.
There is no human input; deposits are automatically processed as soon as they’re confirmed by the blockchain. Withdrawals are the stand-out feature of crypto casinos; they’re usually approved and processed instantly.
Similar to the deposit process, this means you’ll receive the payment in minutes. Traditional online casinos cannot compete in this regard. Ordinarily, it takes 24-48 hours to approve withdrawals, and several more days to receive the payment.
Low Transaction Costs
You can avoid high transaction fees when gambling at a crypto casino site. Deposits are made from a private wallet, meaning players only need to cover the blockchain mining fees.
This varies depending on the network but averages $1-2. This is the case regardless of how much you’re depositing. Reputable crypto casinos do not charge withdrawal fees. If they do, then this shouldn’t be more than what the blockchain network is charging.
In contrast, withdrawals from regular online casinos can be costly. Bank wires, for example, average $50 per withdrawals. Some payment methods attract a variable fee, such as 2% of the total amount.
Drawbacks of Playing in Crypto Casinos
Crypto casinos also come with drawbacks, which we cover below.
Crypto Payments Can be Daunting for Beginners
If you’re completely new to cryptocurrencies in general, the process can be daunting. For instance, you’ll need to learn how to buy digital assets safely, and how to store them in the best crypto wallets.
You’ll also need to be comfortable making wallet-to-wallet transfers, as this is required when gambling with cryptocurrencies.
If you send the crypto tokens to the wrong deposit address, you won’t be able to recover them. Similarly, providing a crypto casino with an incorrect receiving address will also lead to a loss of funds.
Regulatory Gray Area
Cryptocurrencies are unregulated in most countries. This extends to crypto casino sites. This means that many providers operate without a gambling license.
That being said, some crypto casinos have secured licensing from the Governor of Curaçao. This offers additional oversight of the industry. However, whether or not the Curaçao authorities can assist with player disputes remains to be seen.
Volatility is an Issue
Players should also consider volatility when exploring the question – How do crypto casinos work? This is because cryptocurrencies like Bitcoin and Ethereum are a lot more volatile than fiat currencies.
This can have a direct impact on your gambling returns.
- For instance, suppose you deposit 1 ETH into a crypto casino. At the time, Ethereum was worth $2,000.
- After a week of gambling, you’ve built your balance to 1.4 ETH. You make a withdrawal to your private wallet.
- However, the Ethereum price is now $1,400. This means your 1.4 ETH is worth $1,960.
- Even though you made 0.4 ETH from online gambling, you’ve got less than you originally started with because of crypto volatility.
The best way to counter crypto volatility is by gambling with stablecoins. Tether and USD Coin, for example, are pegged to the US dollar. In theory, this means Tether and USD Coin will always be worth $1.
What Cryptocurrencies Can You Use for Online Gambling?
Most crypto casinos accept Bitcoin and some of the best altcoins. This can include Tether, Ethereum, Litecoin, Bitcoin Cash, Solana, Dogecoin, and Shiba Inu. That said, the specific list of accepted coins will vary from one platform to the next.
In terms of which crypto is the best for online gambling, some players prefer stablecoins like Tether. This is because it’s easier to assess deposit, wager, and withdrawal amounts.
Some players avoid Bitcoin specifically, as transaction times are slightly longer than altcoins. Conversely, some players will gamble with whatever cryptocurrencies they have in their wallet at the time.
Types of Crypto Casinos
Let’s discuss the most common types of crypto casinos in 2024.
Hybrid Casinos
Hybrid casinos accept both fiat money and cryptocurrency payments. Due to their relationship with fiat money, hybrid casinos don’t have as much flexibility as crypto-only platforms. By this, we mean that hybrid casinos will usually implement a KYC process.
This will be the case even if you’re depositing and withdrawing cryptocurrencies. In addition, hybrid casinos take a lot longer to process withdrawals. This is because many are traditional gambling sites that have only recently begun accepting cryptocurrencies. In other words, they don’t have the systems to automate their payment flows.
Crypto-Centric Casinos
Crypto-centric casinos specialize exclusively in digital assets. This means they do not directly accept fiat money deposits. As such, players can usually deposit, gamble, and withdraw funds without being KYC’ed. This will appeal to players who want to remain private and anonymous when gambling online.
In addition, crypto-centric casinos have automated payment flows. This means that deposits and withdrawals are automatically approved. Therefore, players receive their winnings in minutes rather than needing to wait 24-48 hours for approval.
What Games Can You Play at Crypto Casinos?
Some crypto casinos support thousands of gambling games. As we’ve established, games are usually supplied by reputable software providers.
Here’s what to expect when gambling with a crypto casino:
- Table Games: Almost all crypto casinos offer traditional table games. This usually includes blackjack, craps, roulette, and baccarat. You’ll likely get to choose from different variations of each table game. For instance, American and European roulette, and punto banco and chemin de fer baccarat.
- Live Dealers: Expect to find live dealer tables at leading crypto casinos. These are usually provided by Pragmatic Play and Evolution. Live dealers also include game shows like Monopoly, Dream Catcher, and Wheel of Fortune.
- Slots: Slots are another fav favorite at crypto casinos. This often includes Megaways, bonus buys, and progressives. The latter connects with other gambling sites, meaning huge jackpots.
- Video Poker: You should find popular variants of video poker too. This can include Deuces Wild, Jacks or Better, and All American. Video poker can be played with software-based and live dealers.
- Provably Fair: Backed by the blockchain, provably fair games cover many gambling categories. This can include slots, blackjack, roulette, and video poker. Popular provably fair games also include keno, plinko, dice, and mines. The main drawback with provably fair titles is they’re usually less interactive than traditional games.
- Sports Betting: An increasing number of crypto casinos double up as sportsbooks. Odds are supplied by external underwriters like BetRadar. This enables players to bet cryptocurrencies on soccer, tennis, baseball, basketball, and more.
You can browse crypto casino sites to see what games are available without needing to register.
How to Choose the Right Crypto Casino
Choosing the right crypto casino is important; especially if you’re a first-time player. Here’s what to consider when exploring the best Bitcoin gambling sites.
Security and Licensing
The most important metric is security and licensing. Although some crypto casinos are unregulated, others hold licenses with a reputable gambling body.
These platforms should be prioritized. Licensing details should be displayed on the crypto casino’s homepage (usually near the website footer).
Game Variety
Explore what games are available when selecting a crypto casino. If you’re interested in table games, see what variations of roulette, blackjack, and baccarat are listed.
Check whether these games are available with software or human dealers. Other popular games to explore include slots, video poker, and sports betting. Additionally, check which software providers the crypto casino works with.
Bonuses
Bonuses are a great way to increase your gambling bankroll. It’s worth prioritizing crypto casinos offering a general welcome package with fair wagering terms.
Many platforms offer a deposit bonus of 200% or more. Some offer new players free spins too. Promotions for existing players should also be checked. We like loyalty programs with cashback and deposit reloads.
Accepted Cryptos
Consider what cryptocurrency you want to deposit, gamble, and withdraw. You can then focus on crypto casinos that accept your preferred option. Most support Bitcoin, Ethereum, Tether, Litecoin, Bitcoin Cash, and Dogecoin.
Just remember that each blockchain network has its own fees and transaction times. What’s more, beginners might be best opting for a stablecoin like Tether, as this reduces the risk of volatility.
User Experience
Newbies should choose a crypto casino that offers a good user experience. For instance, how simple is it to open an account, and what is the deposit process like?
Additionally, how easy is it to find games, and is it seamless or difficult to request withdrawals? These are the types of questions that should be asked when researching crypto casinos.
Customer Support
Another important metric is customer support. Most crypto casinos accept players globally, so support is often available 24/7 via live chat.
Never assume this though. Have a quick look at what customer service channels are available and whether support operates around the clock.
Reputation
Finally, spend some time checking player reviews before joining a crypto casino. You can Google the name of the provider to assess player experiences. This enables you to evaluate whether or not the crypto casino has a solid reputation.
Are Crypto Casinos Safe? Risks and Considerations
Many crypto casinos are regulated. Our research found that many providers are licensed by the Governor of Curaçao. Not only does Curaçao have decades’ worth of experience in remote gambling licensing, but it’s a crypto-friendly nation.
That said, Curaçao e-gaming licenses aren’t as reputable as other gambling bodies, such as the UK Gambling Commission. However, traditional gambling regulators are reluctant to embrace cryptocurrencies, which is why Curaçao is an ideal fit.
Not all crypto casinos are regulated though. Therefore, players need to do their research before proceeding. Another risk is that cryptocurrency payments do not go through third-party intermediaries. If a transfer is made to the wrong wallet address, the funds cannot be recovered.
Conclusion
Although crypto casinos represent a small fraction of the global gambling industry, the space is growing at a rapid pace. Players appreciate the fast deposit and withdrawal process, KYC-free experience, and low transaction fees.
Just remember to stick with reputable, established, and licensed crypto casinos to ensure a safe gambling journey.
References
- https://www.gamblingcommission.gov.uk/
- https://www.imf.org/en/Blogs/Articles/2021/07/26/blog-cryptoassets-as-national-currency-a-step-too-far
- https://blogs.lse.ac.uk/businessreview/2022/11/17/why-cryptocurrencies-need-more-regulation/
- https://www.marketsandmarkets.com/Market-Reports/blockchain-gaming-market-167926225.html
FAQs
How do crypto casinos work?
Crypto casinos process deposits and withdrawals in Bitcoin and other popular digital assets. Players often have access to thousands of casino games, including slots, video poker, blackjack, and roulette.
Are crypto casinos better than regular ones?
Crypto casinos offer several benefits over regular gambling sites, such as instant withdrawals and anonymous accounts. That said, some crypto casinos are unregulated, so it’s important to choose a reputable provider.
Are crypto casinos safe to play at?
Some crypto casinos are established platforms holding at least one gambling license, ensuring a safe experience. However, not all crypto casinos are legitimate, so players should do their own research.
About the Author
Kane Pepi 
