The Potential of NFTs in iGamingPublished April 27, 2023 by Elana K
The NFT market has grown significantly since 2020, and today the phenomenon has spread to many industries, including iGaming. Slotegrator executives believe that NFTs have enormous potential in the iGaming industry and expect them to become commonplace at most online casinos and sportsbooks.
The NFT market has grown significantly since 2020, and today the phenomenon has spread to many industries, including iGaming. Like cryptocurrencies, which found a natural partnership with online casinos, NFTs are based on the blockchain, which has led many casino operators to ask the question: should I launch an NFT casino?
According to Slotegrator, NFTs are a growing trend that doesn’t seem to be slowing down any time soon. Celebrities have been vocal about buying and selling NFTs, influencers have touted them as an unconventional way to earn cash, and famous art pieces have been tokenized.
NFTs in iGaming
There are many ways NFTs can be used in iGaming: in-game tokens, deposits, player rewards, and more. Like cryptocurrencies, they are decentralized and blockchain-based, which allows players from all over the world to use them with no limits.
Blockchain technology is useful in online gaming as it stores information about ownership and provides an advanced level of transparency. Provably fair games are also based on the blockchain, so each player's move can be tracked and verified in the ledger.
NFTs can also help online casinos in terms of security, both by enabling self-exclusion and blocking access to minors.
Another function NFTs serve is to boost players’ businesses. For example, a player who purchases a metaverse slot machine as an NFT can then market it to other players and make money from it.
Generally, NFTs appeal to a younger population, as they are usually more familiar with how they work and place a high value on digital assets.
As NFTs are a relatively new phenomenon, authorities haven’t yet caught up with regulations. The EU, for instance, has not even agreed on the definition of an NFT, but it plans to regulate them the same way as cryptocurrencies. Regulations are important for all parties involved in digital assets, as they can help prevent money laundering, fraud, terrorist financing, and other dangers.
The issue of taxation also needs to be discussed. Cryptocurrency gains are usually taxed in the owner’s country of residence, but no such protocol has yet been established for NFTs.
NFT Potential in iGaming
MarketsandMarkets estimates that the NFT sector will hit over $13 billion in 2027 at an annual growth rate of 35%. This jives with a recent McKinsey survey that shows that more than 20% of the global population plans to increase their levels of online activity, including spending.
iGaming is often an innovator when it comes to new technologies, and NFTs are no exception. Slotegrator executives believe that NFTs have enormous potential in the iGaming industry and expect them to become commonplace at most online casinos and sportsbooks.