Will Land-Based Casinos Turn to Cryptocurrencies?

Once thought of as a meme or a good way to waste your money, cryptocurrencies have become more reputable these days. Now, many people use these digital currencies as investment vehicles.

After all, most cryptocurrencies have soared in value. Bitcoin, for example, is worth over $60,000 per coin at the time of this writing.

The Current Value of Bitcoin

As the name implies, though, you can also use crypto as a currency as well. This use is especially common for making deposits at online casinos.

Land-based casinos, on the other hand, haven’t embraced cryptocurrencies. They’re still relying on cash and credit cards.

Will brick and mortar casinos ever consider turning towards crypto, though? I’ll answer this question by discussing what crypto in casinos would entail, how one gaming giant has dived into the matter, and why casinos will increasingly consider cryptocurrencies.

Crypto Would Require a Credit Based Gambling System

Unlike credit cards, cryptocurrencies don’t arrive instantly after being sent. Instead, you must wait a while for the funds to show up.

Bitcoin, for example, relies on a system of miners to complete transactions (e.g. proof of work). The funds don’t arrive until miners finish computational puzzles. In return for their work, they receive a small percentage of the BTC.

With that in mind, Bitcoin wouldn’t be available immediately when gamblers try obtaining it at casinos. Instead, it would need anywhere from a few hours to several days to arrive. Everything depends upon miners’ fees, network congestion, and the coin itself.

Of course, land-based casinos can’t expect players to wait hours or days for gambling funds to arrive. They’d need to provide credit based on the value of the cryptocurrency coming in.

A player would, for example, send crypto from their wallet to a gaming venue. They’d then be able to withdraw the cash immediately from an onsite cryptocurrency ATM. The casino, meanwhile, would receive their funds later.

IGT Already Has a Patent on Bitcoin ATMs

International Game Technology (IGT) is one of the industry’s oldest and most-established game developers. Despite their already prominent place in gaming, IGT is taking the lead regarding Bitcoin in land-based casinos.

The famed developer has obtained a patent to provide casinos with the following:

“A component processor to escrow the amount of cryptocurrency, establish a line of credit based on the escrowed amount of cryptocurrency, and modify a balance of a gaming establishment account based on the line of credit.”

To put this in simpler terms, IGT will provide what are essentially credit-based Bitcoin ATMs. Players will be able to send BTC from their online wallet to casinos.

As explained in the previous section, these machines operate on credit. Gamblers would receive their money right away, despite the gaming establishment not receiving the crypto immediately.

Digital Dollar Talk Increases Chances of Land-Based Crypto Casinos

A big reason why casinos might accept Bitcoin and other cryptocurrencies is because many countries are discussing moving to central bank digital currencies (CBDCs).

The US is one nation that’s mulling over the matter. It’s currently looking into the feasibility of rolling out a digital dollar. However, the digital version wouldn’t replace cash in the immediate future.

China has already created a digital currency. Its digital yuan will now help the government better monitor its economy and people. Of course, proponents of Bitcoin certainly don’t applaud the lack of anonymity with China’s CBDC.

Ecuador was actually the first country to launch a digital currency. It did so in 2015 while simultaneously banning Bitcoin to eliminate any major competition.

Senegal, Singapore, and Tunisia have followed suit by rolling out CBDCs. Estonia, Japan, Palestine, Russia, and Sweden could be among the first nations with digital currencies and absolutely no cash.

Pros of Crypto in Land-Based Casinos

The decision to add non-traditional payment methods to casinos wouldn’t be an arbitrary one. Instead, land-based gambling venues figure to gain the following advantages.

Introduces More Payment Options

Unlike with online casinos, land-based gamblers don’t currently have a slew of payment options. They can exchange cash for chips or insert bills into machines. They can also use ATMs when they’re running low on cash.

Of course, many gamblers wouldn’t mind having extra ways to acquire gambling funds. They might especially appreciate a digital payment method.

Cryptocurrencies would provide this digital option. Anybody could use their crypto wallet to send and receive funds from a casino.

In the beginning, Bitcoin would likely be the only coin that’s accepted. If this trial went well, though, then casinos would likely add other options, such as Litecoin, Ethereum, and Bitcoin Cash.

Low Fees

The nice thing about using cash at casinos is that there are no fees involved. Instead, you just give your cash to the dealer for chips or put bills into slot machines without any charges.

However, fees begin coming into the equation when dealing with credit cards. In many cases, you’ll pay up to 3% of the total transaction.

Cryptocurrencies also come with fees, which are paid to the miners who facilitate transactions. However, these fees aren’t as significant as what you’ll see with credit cards. In many cases, you’re paying less than 1% of the total transaction.

Great for Crypto Enthusiasts

One problem with cryptocurrencies is that there aren’t many places to use them. Most businesses still accept traditional payment methods.

Brick and mortar casinos, however, could provide another route for using crypto. If you’re somebody who’s always looking for a way to use cryptocurrencies, then you’d really appreciate this option.

You could walk into a land-based casino and visit a crypto ATM. Provided you’re well-versed in using cryptocurrencies, you’d be able to get your gambling funds within minutes.

Cons of Crypto in Land-Based Casinos

The idea of crypto being available in brick and mortar casinos sounds great on paper. However, the following problems will arise for both players and gamblers.

Requires a Learning Curve

Many people are still in the dark regarding how to use cryptocurrencies. If you’re in this boat too, then you’ll experience a learning curve when using them.

First off, you must know how to get cryptocurrency. This process involves visiting and going to an exchange and using fiat (e.g. USD) to buy one or more coins.

You’ll then need to learn how to send your crypto to the casino. This step revolves around using the right wallet addresses.

Luckily, none of these tasks require extensive learning time. But you may just feel like using a credit card or cash if you’re used to them.

Creates a Weird Credit System

As explained before, casinos would need to use a credit system when employing cryptocurrencies. After all, crypto isn’t exchanged instantly.

You and other gamblers would have no problem with this aspect. After all, you’d get funds immediately and be able to hit the tables or slot machines right away.

Casinos, however, will have to wait anywhere from a few hours to a few days before receiving their funds. Some gambling establishments might not appreciate playing the waiting game.

Few Cryptocurrencies Will Be Supported

According to research, only a little over 1% of the world currently owns Bitcoin. With that said, even fewer people own the altcoins like Ethereum, XRP, Litecoin, and Dogecoin.

Assuming many land-based casinos do implement cryptocurrencies, they won’t go much further than Bitcoin. In fact, most gaming establishments would simply stick to BTC for a long time.

Over time, you might eventually see some altcoins added. But casinos are mainly going to stay with Bitcoin and a few well-known altcoins, at least in the early years.

Conclusion

With Bitcoin and other blockchain-based cryptocurrencies steadily increasing in popularity, many governments are seriously considering digital currencies themselves. Therefore, it’s only a matter of time before many casinos begin taking crypto along with the CBDCs that come about.

Bitcoin is no doubt the first candidate that would be considered. It has successfully survived for over a decade and is gaining more steam among the general population.

Popular altcoins, such as Ethereum, Stellar, Bitcoin Cash, and even Dogecoin might also find their way into casinos. They’d give crypto users even more options with regard to digital currencies.

As for when all of this will happen, it’s hard to say. The fact that IGT already has a Bitcoin-style ATM patent, though, speaks volumes about where the industry is headed.