Cryptocurrencies are no longer a science-fiction story. Investors watch with bated breath as bitcoin prices skyrocket and fall again. Now you can even use cryptocurrency to pay for your coffee, or, well, to play slots. From this article you will learn how to start your own crypto-casino.

Blockchain is huge. All those who thought bitcoin investing was a stupid idea ten years ago are now biting their elbows because cryptocurrencies are slowly but surely entering the arena of global business. Transparent, anonymous and decentralized – cryptocurrencies seem to be the perfect replacement for standard currencies.

And while the question of whether governments will replace their national currencies with crypto-alternatives is still not even on the table, bitcoin’s place in the iGaming sphere has already established itself. Cryptocurrencies are attracting tech-savvy people with an interest in justifiable risks. Sound familiar? It does: the audiences of cryptocurrency lovers and online casino players overlap in many ways, which is why the best bitcoin casinos thrive.

Running a bitcoin casino is not much different from running a regular online casino. Below we will tell you why you should do it and how.

What is a crypto casino?

Bitcoin casinos, or crypto casinos, have become one of the biggest iGaming trends. 

In short, a crypto casino is an online casino that allows you to make deposits and withdrawals in one or more cryptocurrencies. Any casino that supports cryptocurrency payments can be considered a bitcoin casino. It is becoming the norm for online casinos to accept cryptocurrency on par with several national currencies, but there are also platforms that only accept cryptocurrencies.

What are the advantages of cryptocurrency casinos?

Operators accept bitcoin for several reasons besides the fact that it’s on trend. Crypto-casinos have several advantages over online gambling platforms that only accept national currencies. Accepting bitcoin is smart because the currency is:

• Is safe;
• Transparent;;
• Legitimate;
• Popular with the online casino audience.

The blockchain technology behind bitcoin and other cryptocurrencies provides a high level of encryption. Each transaction is written in a block of code that never changes, and all transactions must be verified by a decentralized blockchain network. Transactions go directly from one crypto wallet to another, which eliminates the involvement of any third party and reduces the possibility of fraud and eliminates the need to pay transfer fees.

Online casino players are likely among the earliest demographic to use cryptocurrency. There is a large layering of online casino audiences and cryptocurrency lovers. Both the iGaming industry and bitcoin attract a similar demographic: young people who are interested in technology.

There are several crypto-casinos right now, and there are affiliates that are able to bring in a crowd of crypto-lovers. Affiliate sites compare bitcoin and blockchain casinos and drive traffic to their affiliates.

Want to get acquainted with the best Internet Casinos for Canadians projects with cryptocurrency, we recommend you to go and look at the rating of Canadian crypto-casinos.

Why do players like crypto-casinos?

Players like crypto-casinos for many of the same reasons operators like them:

1. Security;
2. Transparency;
3. Anonymity;
4. Speed;
5. Decentralized.

Instead of having the support of some state, as in the case of national currency, cryptocurrency is supported by a decentralized registry, which contains data about all transactions. This registry is distributed over a wide base of millions of copies. This has several results: first, anyone with access to the netbook can verify a transaction; second, bitcoin’s history cannot be faked. Any attempt to tamper with a block of the net will affect all blocks. Players appreciate the transparency and security inherent in decentralized public records.

Although cryptocurrencies are completely transparent, they also offer greater anonymity. The fact that cryptocurrency transaction history is embedded in blockchain is already sufficient proof of identity. It does not guarantee one hundred percent anonymity, the e-wallet address is recorded in the blockchain, even if the name and email of the holder are not.

Nevertheless, this means that Bitcoin users must provide as much personal information as with other payment methods. But some blockchain-based casinos don’t require more data from players than their e-wallet and email. 

The terms cryptocurrency and blockchain are sometimes used interchangeably. But they are not exactly the same thing: Bitcoin is based on blockchain, but blockchain can be used for many other purposes-these concepts are often taken together.

One of the blockchain ideas that online casino players love so much is proven honesty. Initially, provably honest games use an algorithm that allows players to verify that the game has not been tampered with and the results are real. Players must be assured that the outcome of the game is not determined by the bet. Like blockchain, provable honesty is based on players’ interest in trust and transparency. Proven honesty games are often designed to appeal to players who are interested in cryptocurrency.

Withdrawal speed is always a concern for players. Having to wait too long for a bank or other third party to process a transaction can motivate players to write negative reviews about the platform on forums. Crypto transactions do not require the involvement of third parties. Instead of going through a bank or any other payment solution provider, bitcoin goes directly from the casino to the player’s wallet. And instead of several days, such a transfer takes about an hour with no fees.

What is the difference between a regular online casino and a blockchain casino?

Any casino that supports cryptocurrency payments can be called a crypto-casino.

That said, some casinos use blockchain technology already in the development of their platform. This allows them to automate payments with smart contracts. Blockchain casinos have their own followers, including special affiliate sites. But opening a blockchain casino can limit your portfolio of games to only those that are also blockchain-based.

On the other hand, more and more casinos are choosing to accept payment in cryptocurrency alongside the national currencies already available. This gives them a wider reach both in terms of players and player content.

Are there any drawbacks?

There aren’t many disadvantages to operating a bitcoin casino. 

First, it is very difficult to predict how regulation might change. One of the peculiarities of bitcoin is that it is a decentralized network, not a sovereign state. Still, it is impossible to predict how governments will treat cryptocurrencies in the future.

Moreover, in some places, cryptocurrencies have a bad reputation: their anonymity and lack of a centralized authority leads to suspicions of criminal activity.

Cryptocurrencies such as Bitcoin, Ethereum and Litecoin are known for their volatility. Casinos must be prepared for currency value spikes and make sure they always have enough capital to cover players’ winnings despite changes in value. Some casinos manage this risk by automatically converting cryptocurrencies into standard national currencies, converting them back when payouts are needed.

What does it take to start such a casino?

To open a bitcoin casino, you need all the same components that you would need when opening a classic casino:

• Market research;
• License;
• Software;
• Games;
• Payment systems;
• Marketing.

Research

Careful planning is an important step for any business. Analyze different markets around the world before choosing the one that best suits your resources and goals. Once you’ve determined your target audience, find out everything you can about them. Their ability to pay and gaming preferences will shape your offer.

Don’t miss anything when researching the market: each region has its own unusual features, such as certain payment methods that players will expect. Traditional bank accounts, for example, are not always a good choice, players in some regions should be allowed to pay with their mobile contracts (or crypto wallets).

License

It’s pavada that some online casino platform operators avoid the application fees and licensing fees and taxes that come with licensed operation, but it also means that they miss out on legitimacy and stability.

Most players will check for a license, especially the experienced ones, because they have intentions of betting big and staying longer. Moreover, having a license allows a casino to build a stable operating base and gain confidence that the business won’t be blacklisted or blocked.

Operating without a license exposes the business to the risk of legal consequences. While the license and application fees can add up to a serious expense, they will save money and increase potential in the long run.

Software

Gaming platform software needs to be powerful, flexible, fast and efficient.

A robust backend will allow you to monitor business metrics, track progress, and generate reports. In order to be fully functional, the platform must have CRM, marketing tools, reporting system, financial modules, player segmentation, live chat and 24/7 player tech support. 

Quality software will allow you to customize the frontend. This means you can customize the functionality, navigation, and appearance of your website for a specific market and player preference. Turnkey and White Label solutions allow operators to customize the frontend.

Game Selection

Your game content will, for the most part, be determined by your market research. Rather than assembling the broadest lineup of games from scratch, it will usually be more efficient to focus on a specific niche and then expand your selection once your player base is broad enough.

Slots, blackjack, roulette and baccarat are the most common choices. Depending on the operating market, which can be region-specific games like Andar Bahar, Teen Patti and Dragon Tiger, you can show players that you know their preferences. In addition to classic slots and table games, some developers are creating innovative forms, often blockchain-based, for example. Players in some regions like bingo, keno and lotteries.

Live dealer games are one of the biggest iGaming trends at the moment. Players connect to studios where live dealers host their favorite games, recreating the same experience as when they visit a real casino and allowing players to interact with other players and dealers. While live dealer games were initially popular among those who did not trust RNG-based games, today they have established their existence.

Soccer betting is almost universal. But players in each region have their own interests when it comes to sports. Players from India like to bet on cricket, Australians like to bet on rugby. Again, research the market to see what your target audience’s favorite sport is. In addition to live sports, players in many markets also like cybersports, virtual sports, and fantasy sports. 

Payment Systems

Every online casino should support as many different payment methods as possible.

Bitcoin casinos should accept payments in cryptocurrencies like Bitcoin and Ethereum, but that doesn’t mean they can’t also support deposits and withdrawals in local currencies – this will only increase the number of players.

Blockchain casinos accept payments exclusively in Bitcoin, but blockchain-based platforms are only compatible with games that were also developed on blockchain. This greatly limits the number of games they can offer.

Marketing

Marketing an online casino consists of two main phases: attracting players and retaining them. Online casinos must develop their brand awareness, give players a reason to choose them over their competitors, find the right motivation to complete the registration and offer ever-increasing benefits so that players do not move on to other platforms over time.

Why is now the right time?

It’s never too late to open an online casino. This industry is fairly young, jurisdictions began licensing and regulating gambling in the mid-1990, and its growth is only accelerating with the trend of spending more and more time online. But in addition to the overall growth of the industry, finding a specific niche will help launch a business. And if that niche is also growing, so much the better.

Cryptocurrencies are with us for the long haul. The price of Bitcoin is creeping up, which means the profitability of casinos that support crypto-transactions grows with it. Making e-wallet transactions has become the norm rather than the rarity, and players’ expectations are certainly in line.

At this point, there are two ways of going about things: in one you are grateful that you launched a Bitcoin casino, in the other you can’t believe that you missed such an obvious opportunity.