The Future Impact of Bitcoin on Online GamblingPublished September 13, 2015 by Lee R
Exclusive cryptocurrency solutions would put Bitcoin in pole position.
The virtual market of online gambling is growing, with gross winnings expected to reach a very impressive €28.24bn this year.
Expanding Use Needs Currency
With the amount of countries and states regulating online gambling expanding, the growth of this virtual wagering industry needs a virtual currency to sustain it.
That's because while Bitcoin gambling constitutes only a small proportion of current online gambling revenue, Bitcoin's key features such as low costs and speedy payments put Bitcoin in pole position among cryptocurrency competitors to become the cryptocurrency of choice.
Key External Factor
A key external factor affecting the success of the digital currency includes regulation. Not all markets are equally receptive to any digital currency. For instance, pioneering Bitcoin betting site SatoshiDice does not operate in the U.S. because of stringent federal gambling laws.
In direct response to a new wave of internet gambling sites in 2006, the US Justice Department introduced the Unlawful Internet Gaming Enforcement Act. The UIGEA outlawed the processing of payments originating in US banks, which for obvious reasons cut out the vast majority of US players.
The Cryptocurrency Solution
Some providers seem to have found the solution: offering bets via Bitcoin exclusively, By not using US banks for play, using cryptocurrency opens the door for UIGEA-compliant online gambling in the US by giving US players the option of utilizing their own prepaid cryptocurrency accounts to wager online in UIGEA compliant provider sites.
If cryptocurrency is the solution, then Bitcoin, as the most popular and efficient cryptocurrency payment system, can very reasonably be called the payment system of the future for online gambling. Unless, of course, the UIGEA is repealed.