How Does Bitcoin Impact Online Gambling?

Written by: Jeremy Olson, OUSC Online Casino and Games Expert
5 minute read
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January 3rd, 2009, is a seemingly unimportant date to most. However, it’s actually the day when Satoshi Nakamoto mined the first Bitcoin—the world’s earliest and still most-popular cryptocurrency.

Bitcoin (BTC) has become notable in many niches, especially in the multi-billion-dollar online gambling industry. The last few years have seen BTC rise to prominence at online casinos, sportsbooks, and poker rooms.

So has Bitcoin changed online gambling for the better or worse during its meteoric rise? We’ll discuss this matter below, including BTC’s good and bad points at gambling sites.

Bitcoin’s Influence on Online Gambling

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Nakamoto didn’t create Bitcoin to improve deposit and withdrawal processes at real money online casinos and sportsbooks. Instead, the anonymous BTC inventor wanted to produce a decentralized currency free of bank and governmental control.

In doing so, he has also showcased blockchain technology, which forms the foundation of Bitcoin. Blockchain has several attributes that can help both gambling sites and players, including the following:

Anonymity

Bitcoin and other cryptocurrencies don’t tie your name and identity to transactions.

Decentralization

No single entity controls a public blockchain (i.e., open and visible to the public), such as Bitcoin.

Hackerproof

Bitcoin is one of many secure public blockchains that have never been hacked.

Transparency

Anybody can see and verify an (anonymous) transaction on a public blockchain.

Again, Nakamoto had broader goals with Bitcoin and blockchain beyond gambling. However, his invention has indirectly helped online gambling thrive and deal with customers more efficiently. The blockchain attributes covered above are what make BTC so attractive to gamblers.

We’ll cover the Bitcoin effect on online gambling in the following sections. Simply put, every casino player or sports bettor can appreciate anonymous and peer-to-peer transactions. The operators, meanwhile, can offer a convenient way for customers to deposit and withdraw money.

Bitcoin’s Positive and Negative Impact on Online Gambling

The Bitcoin effect on online gambling seems mostly positive, especially considering the good qualities covered above. However, BTC’s relevancy in mobile gambling also has a few negative aspects. You can see how Bitcoin has improved and created problems for the gambling industry below.

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Direct Link Between Operators & Players

Thanks to Bitcoin, gambling operators, and customers can make peer-to-peer transactions. They don’t need to rely on third-party approval from banks and credit card processors when dealing with each other.

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Lost Player Funds

Gamblers who input the wrong Bitcoin address when depositing will lose their funds without recourse. After all, no third party retrieves errant funds like with a bank or eWallet.

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Fewer Fees on Both Sides

Bitcoin cuts out the middleman and only requires small fees, which go to miners who process transactions. Therefore, gambling operators and players avoid the high costs incurred with traditional banking options.

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Rise of Unlicensed Gambling Sites

Most online sportsbooks, poker rooms, and casinos obtain licensing and, thus, are subject to third-party oversight. However, thanks to its decentralized nature, Bitcoin gives operators more room to operate without a license.

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Bigger Bonuses

Many online gambling sites have been generous with the money they save through reduced payment processing fees. They’ve passed these savings on to players with huge bonuses.

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Volatile Bankrolls & Revenue

BTC has been volatile since hitting the market in 2009. This volatility makes it hard for players (bankrolls) and operators (revenue) to manage their funds.

Benefits of Using Bitcoin at Online Casinos

You can see that the overall Bitcoin impact on online gambling is a mixed bag. However, the advantages of a player using BTC outweigh the downsides. Below, you can see the benefits of depositing and playing at Bitcoin online casinos.

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Security

Bitcoin is a highly secure method of monetary exchange because it makes hacks and thefts virtually impossible. Furthermore, all Bitcoin transactions are anonymous and preferable if you value privacy when gambling online.

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Decentralization

Dubbed the “currency without a nation,” BTC is a decentralized exchange method free from government regulation. This decentralization also ensures that your online gambling site deposits never get rejected by third parties.

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Speed

Bitcoin deposits and withdrawals are fast and compete well with other payment methods. You’ll enjoy fast cashouts with BTC, often receiving your money in hours or even minutes.

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Low Fees

Traditional banking methods charge 2% to 15% for processing deposits and withdrawals. Bitcoin only requires small fees (generally less than 1%) for the miners who facilitate transactions.

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Larger Bonuses

Bitcoin casinos offer some of the industry’s largest bonuses, delivering up to 1 BTC or more. You’ll typically find that these massive bonuses come with fair terms and conditions.

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Game Fairness

Casinos that incorporate provably fair technology ensure that their games are unbiased. When integrated with BTC, this technology provides players with increased transparency and fairness in their gaming experience.

Best Bitcoin Online Casinos

These are some of the bitcoin casinos we’ve tried and recommended. Each one of them offers crypto offers, including Bitcoin ones.

RANK ONLINE CASINO # OF GAMES BONUS START
1 DuckyLuck Casino Logo DuckyLuck Casino # OF GAMES 699 BONUS 500% up to $7,500 Play Now
2 Bovada Casino Logo Bovada Casino # OF GAMES 549 BONUS 125% up to $3,750 Play Now
3 SlotsandCasino Logo SlotsandCasino # OF GAMES 691 BONUS 500% up to $7,500 Play Now
4 Wild Casino Logo Wild Casino # OF GAMES 799 BONUS 100% up to $5,000 Play Now
5 Red Dog Casino Logo Red Dog Casino # OF GAMES 911 BONUS $8,000 Welcome Bonus Play Now

Bitcoin’s Positive Impact Will Persist

Bitcoin isn’t perfect regarding its overall effect on online gambling. However, it has positively impacted the gambling industry—especially for players.

You can enjoy speedier banking, lower fees, and safe transactions when playing with BTC. You also don’t have to worry about seeing your deposits rejected by a third-party bank or payment processor.

In summary, Bitcoin is a great addition to online gambling’s ecosystem and should remain popular among players for many years.


Jeremy Olson

Jeremy Olson OUSC Online Casino and Games Expert

Jeremy Olson started in the gambling world by taking beatings in blackjack and poker. That was almost 20 years ago. Ever since then, he became obsessed with becoming a better gambler. That pursuit led him to write. He mainly focuses on his stronger areas of expertise, table games strategy, online casino reviews, and online casino bonuses.

Learn More About Jeremy