Cryptocurrency and other crypto assets, like NFTs, are becoming increasingly commonplace in the online casino world. In particular, cryptocurrencies are popular because they offer fast, inexpensive, borderless transactions.
NFTs are seeing some use in platform gamification, where they are given as rewards to regular players, and some online gambling platforms enable NFT staking.
In the future, these assets could be transferred between casinos and platforms, and even bought or sold at NFT platforms, although they are unlikely to become a standard method of payment.
Online Gambling And Blockchain
Blockchain technology has found many uses. The digital ledger can be used to hold records and store data, while cryptocurrencies like Bitcoin and Ethereum have become popular with some businesses and e-commerce stores.
iGaming sites have started accepting crypto deposits, enabling them to offer instant withdrawals and deposits as well as provably fair gaming. According to online betting expert Brett Curtis, the low costs associated with cryptocurrency payments also enable crypto casinos to offer some of the most generous bonuses and rewards.
While they do offer benefits over traditional online casinos, cryptocurrency casinos also offer some unique challenges to players. Users need to use crypto wallets as well as crypto exchanges, and for those players who accept NFTs as prizes or loyalty rewards, and want to sell them, they will need to use dedicated NFT marketplaces.
How Are NFTs Used in iGaming?
NFTs are digital assets stored on the blockchain. Every NFT is unique, and it usually represents digital artwork, audio, or another digital file. Initially, NFTs were used primarily to trade digital collectibles. Artists would create an NFT and then sell it. Collectors and speculative investors purchased the NFTs, hoping they would increase in value over time.
Over time, though, companies and individuals have found increasingly unique ways to use NFTs. NFT trading games, which operate similarly to physical trading card games like Pokémon and Magic: The Gathering, have become popular.
Companies, sports teams, and even celebrities and individuals have also launched their own series of NFTs that can include additional privileges such as voting rights or discounted products and services.
Rewards
One way that online casinos use NFTs is as a form of reward for their players. Typically, these are given out as part of loyalty programs or to high rollers who regularly engage with the games on the site. Rewards like this are used to attract players back to the site so they keep playing.
The NFTs may also come with additional benefits, such as quicker deposits, access to exclusive games, or potentially even invitations to physical tournaments and other events. NFTs are a convenient alternative to traditional rewards. They feel more prestigious than a simple email or QR code link, and they can be stored in a compatible NFT wallet that the user can carry to any physical location, such as an associated retail casino.
NFT Trading
NFTs can be traded on open marketplaces. If a player receives a reward they don’t want or won’t use, they could potentially sell the associated NFTs on relevant marketplaces. This transfers the crypto key to the new recipient, and they effectively become the holder and owner of the token.
For the selling player, this would enable them to convert their digital reward into cryptocurrency. The buyer not only receives the NFT but also any bonus or other feature that accompanies that token.
Collectibles
WSOP poker bracelets are awarded to the world’s best poker players when they win World Series of Poker games. The bracelets are highly cherished, and the number of bracelets a player has won is used as an indication of that player’s success at the table.
Although there isn’t really anything similar to that for other online casino games, there is the potential for casinos to introduce them. Players who win slot jackpots, call house at an online bingo game, or hold their nerve to cash out a 100x multiplier at crash games could be rewarded with a digital bracelet.
Because NFTs are developed on the blockchain, rather than on the casino software, these could be transferable between casinos, making them highly coveted collectibles.
NFT Staking
NFT gambling is still a relatively niche area of iGaming, but it does exist. NFT gambling games work in much the same way as any other gambling game. Players stake their NFTs in games of skill or luck, and the gambling site or other players match the stake.
Once a fair price has been agreed upon by all parties, the game commences, and the winner stands to collect NFTs, cryptocurrency, or other blockchain-based assets. For the NFT collector, this can represent a fun way to expand their collection. For speculative investors, it could present a way of getting hold of highly sought-after collectibles.
Other Crypto iGaming Uses
While NFTs continue to gather pace in the cryptocurrency world and are finding purpose as collectibles and rewards at online casinos, they are unlikely to prove as popular as iGaming cryptocurrencies.
Cryptocurrency payments can be completed in a matter of seconds, especially with coins like Solana, which has been ranked the quickest blockchain for transactions, rather than the several working days it takes for traditional payments to complete. As well as being faster, they are also cheaper, with some cryptocurrencies offering trades at less than one cent per trade, on average.
Because blockchain transactions are immutable, the use of cryptocurrencies can also help combat fraud while providing casinos and their players with verifiably fair gaming practices. All of these same benefits are attributable to NFTs, which is why blockchain and crypto assets are considered the future of iGaming.
Conclusion
NFTs have been implemented in some online casinos. In particular, they are used as a method of rewarding loyal players, with the tokens including additional benefits like unique bonuses or access to exclusive games and events. In the future, NFTs may be transferable between casino platforms and even with other types of platforms to further expand their uses and benefits.
Main Image Credit: Unsplash