Bitcoin to transform online gambling industry

[The Buzz]

At present, bitcoin gambling constitutes only a small proportion of the total online gambling revenues. However, bitcoin's key features like low cost, speedy payments, anonymity suggest that opportunity exists for bitcoin to become the future of gambling.

Read more from EconoTimes: http://www.econotimes.com/Bitcoin-to...industry-77030

[JackTenSuited]

They've been saying this for years. A few sites reluctantly accepted it and that's about it (apart from all the dedicated bitcoin only sites)

[Jason FTA]

I wish I could comment on bitcoins..... but I have NO idea how they work, how you obtain them or how you cash them out. I was under the impression that they were pretty darn hard to acquire. I am sure that 1 bitcoin was close to 1000 USD some time ago, I now see that it dropped to +-230USD.

The average user is a 31.7 year old libertarian male and the top motivators for new users are mostly curiosity, profit, and politics. As opposed to common belief and rumors, far more people have used Bitcoin to make donations than to buy narcotics. As a matter of fact, 39% of users do not drink, smoke, gamble, or take drugs.

Maybe someone can shed some light on bitcoins fo us!

Regards
Jason

[Simmo!]

I've always thought that the anonymity that Bitcoin offers is at odds with the industry's requirements for transparency. I'm sure if and when Bitcoin goes more mainstream in society (I still see a battle with regulatory bodies being a hurdle here) it will play a larger role in our industry but I think it will require significant changes to due diligence procedures.

[TheGooner]

I've always thought that the anonymity that Bitcoin offers is at odds with the industry's requirements for transparency. I'm sure if and when Bitcoin goes more mainstream in society (I still see a battle with regulatory bodies being a hurdle here) it will play a larger role in our industry but I think it will require significant changes to due diligence procedures.

Exactly.

This article is so wide of the mark it's funny. I guess that's because it's US centric.

Unregulated "wild west" sites that sell drugs and other illicit services might find bitcoin a boost.
Anonymity is not a feature of a properly run gambling business.

Good online gambling sites operate "Know Your Customer" procedures to prevent under-age gambling and prevent money laundering

Good online gambling sites ARE licensed and regulated and run as major businesses, they are upfront on the management structure and ownership and registered on stock exchanges.

Bitcoin will do NOTHING to provide safe licensed gambling for players.

[TheGooner]

As a matter of fact, 39% of users do not drink, smoke, gamble, or take drugs.

Laughed out loud at this "statement of fact"


To do NONE of these four items at all would be a small minority of the general adult population.
Maybe 10% ?

Given that Bitcoin is anonymous - what was the source of the statistics that suggested BitCoin users are 4 times more puritanical than the average citizen?

[Miles_FTA]

Anonymity is not a feature of a properly run gambling business.

Good online gambling sites operate "Know Your Customer" procedures to prevent under-age gambling and prevent money laundering

Good online gambling sites ARE licensed and regulated and run as major businesses, they are upfront on the management structure and ownership and registered on stock exchanges.

@ Gooner So correct Sir Great Statement I'm no fan of anything that can be hidden way or isn't easily available to the general population especially in a gaming context and dont believe that Bitcoin will be good or even big in this sector.

[justbookies]

I agree with comments about anonymity, but bitcoin's appeal to a sportsbook is beyond that. I wouldn't recommend anyone join a sportsbook with no KYC requirements. Bitcoin offers no chargebacks and no fees (the fee is so tiny as to be irrelevant) and crucially no bank as an intermediary. For betting firms facing the USA out of panama, costa rica, antigua etc this has to be very attractive given the delays and legal problems with payments. Bitcoin is a legal payment method for them, while bank transfers, checks, credit cards etc are arguably not. There are some very well run firms in those locations with strict KYC requirements, one or two of those are pushing bitcoin hard. I expect more to do so when they wake up. The advantages are beyond anonymity for the sports betting industry.

There is a massive hole that bitcoin can fill in terms of a global currency. The anonymity aspect in terms of the black economy (drugs, crime etc) and the avoidance of exchange rate charges and banks for the white economy will all fuel the demand for it. The problem is it is so volatile currently, so to transfer in and out of it carries big risk as it can halve against the dollar overnight. The other problem is whether the developers behind it balls it up, and there is an argument going on right now amongst them about the future of bitcoin. That cant help with its stability or credibility or attraction. But the bitcoin cat is out the bag and some currency will fill this wide open space, whether it is bitcoin or a different version of the same thing. Bitcoin has a massive head start but they could drop the ball.

[DanHorvat]

Gambling with Bitcoin is a double gamble.

First there's the normal gambling, then there's the gamble on the value of the Bitcoin. Perhaps add a third gamble - how on Earth would you cash in on a big jackpot? How would you use that to buy a house?

[edgarf76]

It really depends on the laws and/or banking options in each country because the demand of Bitcoin is based on the demand of online gamblers having lack of banking options. That being said the more countries and states that legalize online gambling and regulate it, the odds are in favor that Paypal will get back in and/or credit card processing will be easier. With that being said, Bitcoin will loose demand.

Another factor is that people think that they are betting sports or playing slots online for real money anonymously when they use Bitcoin, which they are not. However this false belief does drive the demand of Bitcoin up. My two cents.

[justbookies]

How on Earth would you cash in on a big jackpot? How would you use that to buy a house?

You convert it your local currency. There are a lot of bitcoin exchanges out there, for example coinbase is one that is well trusted and has high volume. You send the bitcoin to your coinbase account (or whoever) and then swap them for whatever currency, say USD. Then you have that paid to your bank account. If you are already playing with bitcoin you will already have opened an account with an exchange anyway.

PS: I thought this thread was very useful for people who want to learn how bitcoin works (some informative stuff from sherlock): https://www.gpwa.org/forum/where-kee...hlight=bitcoin

[universal4]

The anonymity is a total and complete LIE! from the beginning.

The only part of the anonymity statement that was true, the exchanges concealed who was making the transactions and in order to exchange any portion of bitcoin to useable fiat currency of your choosing, the exchange has always and still knows the identity of the individual.

Every single bitcoin wallet in existence has a number, and some exange somewhere knows the true identity of the wallet owner....(just like bank accounts)

Someone mentioned that bitcoin was worth $1000 at one point, yes, and in fact I think the high reached was upwards of $1200 plus, and although some currencies around the world have seen some swings the past few years, none of them compare to the value bitcoin has lost.

I personally do not think that bitcoin can ever become mainstream until such time as the exchanges follow proper KYC rules and are regulated in a similar manner as banks and other worldwide institutions.

Rick
Universal4

[JackTenSuited]

Laughed out loud at this "statement of fact"


To do NONE of these four items at all would be a small minority of the general adult population.
Maybe 10% ?

Given that Bitcoin is anonymous - what was the source of the statistics that suggested BitCoin users are 4 times more puritanical than the average citizen?

I imagine a large % of bitcoin users signed up purely for 2 out of those 4 reasons

I do follow reddit/r/bitcoin a bit and the amount of delusional people that heavily invest in bitcoin is terrifying. People cashing in their 401k when the price drops seems to be the norm. they may as well cash out and stick it on roulette (after signing up via my aff link)

[JackTenSuited]

Anonymity is not a feature of a properly run gambling business.

Good online gambling sites operate "Know Your Customer" procedures to prevent under-age gambling and prevent money laundering.

Absolutely, the amusing thing is when you signup to any bitcoin exchange you need to send in a copy of your passport and utility billls. Not sure what part of that qualifies for the whole anonymous virtual currency part. Ofcourse they can then see exactly where all your coins are being sent to and from (unless you use a tumbler)

[DaftDog]

Given that Bitcoin is anonymous - what was the source of the statistics that suggested BitCoin users are 4 times more puritanical than the average citizen?

The source is probably from the same buddies of George Bush who said there were WMD's in Iraq. So, most Americans will believe the info.

[platen44]

Bitcoin is semi-anonymous as a matter of fact - if you dig deep and hard enough you will get to the person that has sent money / payment.

There is one more very interesting aspect of the whole bitcoin thing - provably fair technology (a pretty decent infographics here if anyone is not sure what thats all about http://www.mybitcoinslots.com/bitcoi...ir-technology/).

Hashing is a technology major banks are looking into now as a way of verifying transactions - this is a huge advantage bitcoin gambling has over traditional methods imo.

[universal4]

If the exchanges were required to follow the KYC rules and disclose to authorities just like other banks and financial institutions do, the "false sense" of real anonymity would disappear, and in fact I am surprised why more countries have not come down a bit harder on the exchanges, they are certainly handling financial transactions and are acting pretty close in the same capacity as banks, yet they feel they do not have to follow the rules.

There is no real anonymity, if the exchanges do not know the true identity, they can not exchange your coins into any other fiat currency, which can be transferred to a bank account...

Rick
Universal4

[Sherlock]

I wish I could comment on bitcoins..... but I have NO idea how they work, how you obtain them or how you cash them out. I was under the impression that they were pretty darn hard to acquire. I am sure that 1 bitcoin was close to 1000 USD some time ago, I now see that it dropped to +-230USD.

The average user is a 31.7 year old libertarian male and the top motivators for new users are mostly curiosity, profit, and politics. As opposed to common belief and rumors, far more people have used Bitcoin to make donations than to buy narcotics. As a matter of fact, 39% of users do not drink, smoke, gamble, or take drugs.

Maybe someone can shed some light on bitcoins fo us!

Regards
Jason

I posted something here if you are interested: https://www.gpwa.org/forum/where-kee...in-223415.html
The article (can I even call it article? It is a scream of random sentences with keywords "bitcoin" and "gambling") is indeed stupid. Written by 16 yrs Indian boy for 0.5 USD. But..

I am sure that 1 bitcoin was close to 1000 USD some time ago, I now see that it dropped to +-230USD.

Price is irrelevant. Bitcoins can work at any price. Everyone is fascinated by the 1K spike and drop. If there would be some really good payment system and currency, how should the price develop? It should gain 5% per month? Then everyone would be satisfied? Well not n this world. IF 5% appreciation is estimated by market, then everybody will jump in and bubbles will occur. It is no other way for cryptocurrency to be developed than through bubbles! (It is the same as with IT and dot com bubble and now we are in startup bubble).

As opposed to common belief and rumors, far more people have used Bitcoin to make donations than to buy narcotics.

That is just another sentence written by cheap copywriter. Nobody knows how many narcotics are bought, nobody knows how many donations are made. Even if statement above is true, the volume of btc in drugs is far bigger than some pocket change donations, that are used on forums instead of likes, where anyone can send 0.001 usd this way. But nobody can count people, just addresses.

As a matter of fact, 39% of users do not drink, smoke, gamble, or take drugs.

The copywriters are busy. Yes, people like to admit they gamle or take drugs. Now, during the times of NSA paranoia even more. Especially the people who have bitcoins and are mostly privacy freaks. Here is an anonymous survey dear darkmarket user. Do you take drugs?

Even if the above is true, 61% is a nice niche.

Bitcoins cons and pros must be evaluated differently.

[Sherlock]

Bitcoin is semi-anonymous as a matter of fact - if you dig deep and hard enough you will get to the person that has sent money / payment.

There is one more very interesting aspect of the whole bitcoin thing - provably fair technology (a pretty decent infographics here if anyone is not sure what thats all about http://www.mybitcoinslots.com/bitcoi...ir-technology/).

Hashing is a technology major banks are looking into now as a way of verifying transactions - this is a huge advantage bitcoin gambling has over traditional methods imo.

Bitcoin is semi-anonymous, but anyone can make it anonymous.

Of course exchanges are not anonymous, even when there are russian exchanges like btc-e.com, where nobody cares and US authorities will never get the data I believe.

But the trick is, that when you have your non-anonymous bitcoins, you can:
1. Send them to mixers, where for fee 0.25-1% the bitcoins are mixed (=you get the same anount minus fee, but from different parts of blockchain). Those mixers are btc<->btc business are completely unregulated.
2. You can exchange your btc to another currency at some pure cryptocurrency exchange (the one that does not operate with fiat money). Then you can exchange it back to btc (if you like even more anonymity, you can do it at another exchange).

You can mix 1. and 2., if you are still paranoid. If done well, this way of handling Bitcoins means that they are anonymous. I am all for regulating exchanges and everyone in bitcoin industry will agree that strict regulation of btc exchanges that deal with money would be great. It would mean that bitcoin will be officially recognized, but for the bitcoin secrecy and usability it would not mean anything. They can restrict the gates to btc, therefore it should be done, beacuse everyone believes, this will bring bitcoin under control. Why not fulfill this nonsense?

[hotfreebingo]

I do not see this happening anytime in the near future.