IS CRYPTOCURRENCY CHANGING THE ONLINE GAMBLING MARKET IN EUROPE?
|Published: 29th September 2020 21:12|
It is no longer news that the internet has revolutionalized and brought upgrades to a wide range of activities and also enhancing the efficiency of various platforms.
Going back far in history, Gambling has existed almost through the history of mankind. In the UK, Gambling might pre-date history and civilization, the earliest record of gambling was in 1190. For what was declared by the King as an activity just for the noblemen, he also imposed restrictions on amounts to a stake. Followed by these rules were modified adjustments by successive monarchs. The first government-sanctioned lottery happened in 1964. In the 19th century, precisely 1845-1853, odd, and immoral activities in gambling led to the Gaming and Betting Acts of 1845-1853, which placed a restriction on gambling by the lower classes. The start of modern-day Gambling in The United Kingdom occurred in 1968 which allowed commercial casinos for the first time. By 2005, Casinos and Sports betting were already huge businesses, there was a need for an update on the laws. The primary amendments on the laws were to;
- Ensure that gambling was crime-free
- Guarantee fairness
- Protect the negative impact of gambling on young ones and individuals
The UKGC was in charge of verifying strict compliance by providers in following these sets of rules. They were also to pursue legal actions against any infringements. They give license and have possessed the authority to revoke.
As a business that keeps thriving, Gambling has encountered a lot of modern developments, with the help and influence of the internet, there have been massive upgrades to its functionality and efficiency. The advent of the internet aided the introduction of online betting, which was seen to have given gambling an unconventional pattern. The internet took Gambling from ‘traditional casinos’ to having it literally at our fingertips, from what was first known to be for a particular class of people, it is now for everyone and at such ease.
The roots of online gambling can be traced back to the early 1900s; Antigua and Barbuda became the first jurisdiction to authorize online gambling, starting with online casinos which finally went live by the end of 1994. Online gambling became an industry of interest in the early 2000s and by 2008 the revenue hit a staggering $21 billion. The Gambling industry has so much propensity for innovations, hence a lot of developments are introduced occasionally, one of the recent developments is the Inclusion of cryptocurrency in online gambling platforms, which is setting Gambling on another transition.
WHAT IS CRYPTOCURRENCY;
As one of the recent innovations, Cryptocurrency is an internet-based medium of exchange that uses cryptographical functions in carrying out financial transactions.
Cryptocurrency first appeared on the market scene in 2009, many people consider bitcoin to be the original and first Cryptocurrency, Bitcoin was developed by Satoshi Nakamoto, paving way for other cryptocurrencies; Bitcoin just like most cryptocurrencies have increased in valuation over the years.
Cryptocurrency operates with a decentralized system; it is not controlled by a central authority.
Other cryptocurrencies emerged and are still emerging, it was about a question of ‘’If the blockchain could verify a financial transaction, why couldn’t it fill in as the mediator and validator for other peer-to-peer interactions? And the answer was ''yes, giving the rise of other cryptocurrencies, what could be known as ‘’2nd Generation Cryptocurrencies’’. One of the most recognized in this league is Ethereum, which came into the market in 2015 and was the first of these 2nd generation currencies to make a widespread impact.
Having these amazing features, the introduction of cryptocurrency into online gambling was definitely a huge upgrade, hence, a lot of questions to this decision.
Why should I gamble with cryptocurrency?
There are so many benefits attached to gambling with cryptocurrency. Understanding FIAT currencies (dollar and pounds) and their rigidity in increasing valuation, Gamblers prefer to use currencies that have high tendencies to fluctuate, they most leverage on these opportunities as their profits will likely yield an increase in value as the value of the currency fluctuates. Cryptocurrency also gives a great amount of control that Traditional banks may not afford you, some transactions done through a traditional bank may be blocked due to suspicion, however, this kind of issue can never happen with cryptocurrency.
How is Cryptocurrency Changing The Online Gambling Market;
Cryptocurrency is still a developing entity in the online gambling market, more than just an alternative payment option it has made a big impact in the gambling market. Also creating and affording users a convenient, safer, and secured platform to gamble with ease. Using cryptocurrency has brought some notable and improved changes;
- Increased anonymity; Though not complete anonymity, cryptocurrency has provided users of the online gambling market a level of anonymity that traditional banks do not offer. Many gamblers see this as an added freedom since transactions can be made without involving the user's personal data and still manages to be a legitimate service.
- Transparency and Trust; In past times there have been cases of foul play and lack of transparency as most casinos have been involved in rigging games to their benefits. For a technology that runs on a blockchain, it is impossible to manipulate.
- Removal of House edge and balance of power; With cryptocurrencies, there are no house-edges and both parties are equal at the footing.
- Enhanced payment set-ups; With cryptocurrency, it makes for fast payments and minimal costing for a transaction.
It also affords users to gamble in places where the legislation forbids real money betting. Though yet to be made legal in a couple of countries, it is no doubt that cryptocurrency is causing huge transformations in the online gambling market scene. In January 2018 ‘’BBC reported the famous English club Arsenal signing a deal with CashBet coin; an online gambling company that uses cryptocurrency. Gradually finding its place, online gambling is experiencing the change with cryptocurrency.
In recent times, there have been a lot of cons associated with gambling, from addictions to crime such as stealing. However, in the UK, certain regulations have been made using Gamstop: A service put in place to provide limits for gamblers. Gamstop is a self-exclusion scheme for gamblers in the UK. However, players in the UK still can play in Non Gamstop Casinos, since the scheme works only on UK based casinos.
How does it work?
By registering with Gamstop, it simply regulates gamblers' usage of gambling platforms, to curb excesses such as addictions and crime. With its terms and conditions, gamblers are allowed to determine how long they want to stay away from betting and Gamstop is there to see to it.