How Blockchain Technology In Casinos Increases Security
The fact that security online is a big issue has not just been true since yesterday. One technology that brings special advantages in the modern world is the blockchain. It became known through its use in the cryptocurrencies Bitcoin and Co. But even online casinos now use the technology to their advantage. Here we explain what this entails and what advantages arise for the user.
Previous doubts dispelled in one fell swoop
What users had doubts about for a long time has developed in an extraordinarily positive way. We are talking about security in the online environment, especially in the casino, where real money is usually wagered to use the games, for example at these best sports wagering platforms. One point in particular bothered people about the concept of these companies: the lack of transparency. This is now being countered with the decentralized and fully documented blockchain. There are still not too many companies that rely on the extremely long chains of cryptocurrencies.
Online casinos are among those industries that like to deal with the still new trend. Thus, in addition to user-friendly customer service and good payout rates, best online casinos in the test are also characterized by the possibility to pay with Bitcoin and Co. Indeed, blockchain-based products are associated with the reduction of fees and transaction costs and therefore improve the overall gaming experience of consumers. Due to these advantages, the payment option with Bitcoin is associated with respectability, user-friendliness as well as progressiveness of a casino.
The introduction of blockchain in online casinos leads to higher trust in the providers, as no hacking and manipulation within the account can be crowned with success. Thanks to smart contracts, winnings are automatically calculated and transferred to the user’s account. The latter cannot manipulate anything either, which in turn benefits the casinos themselves.
A blockchain lists all transactions consecutively in a chain and stores them on the respective end device of the users. Thus, if something is wrong, it would immediately be noticed that there is a problem. This decentralized approach can also have financial benefits for players. An example of this is the Ethereum blockchain-based vSlice . Holders of this token automatically receive a dividend when the platform turns a profit, regardless of casino play.
Payment and anonymity are valuable additions
As mentioned above, the first application of the blockchain was found in the context of cryptocurrencies. This was just the start, there are a whole new bunch of DeFi blockchain projects coming out soon.
Gradually, the first and still leading digital currency, Bitcoin, developed into a means of payment that can also be used more and more in everyday life. As an alternative payment method, especially companies on the Internet are benefiting more and more from cryptocurrencies. Online casinos therefore no longer have to look for the way via middle channels, such as banks, but can offer their customers cheaper deposits as well as withdrawals afterwards.
Another advantage is the anonymity. Most casinos are normally subject to quite strong regulations, which become apparent when users have to verify their account before making a withdrawal. For some providers in the industry, this process can be lengthy, for example; they also require personal documents that may prefer not to be shared.
With the use of blockchain technology, users do not have to share any personal information to complete a transaction. Not even accounts are necessarily needed if the technology is implemented correctly. What should be noted, however, is that in the event of an actual problem, the lost funds may be difficult to recover due to complete anonymity.
Last but not least, with the use of blockchain, there is a higher accessibility of the payment platform. For example, a Bitcoin payment can be made regardless of the user’s personal location; only an internet connection is required. Online casinos and related gambling are part of an industry that is currently growing and facing new challenges. In order to overcome these, the use of modern technologies will sooner or later be indispensable. This is where blockchain comes into play, bringing various advantages for both casino providers and users. While players benefit especially from the reduction of fees and the higher anonymity, the companies themselves see themselves in a stronger position due to the improved trustworthiness. In the future, it is to be expected that the established casinos will also deal with the blockchain and take advantage of the benefits. The new technical possibilities seem to be in their infancy at the moment and can still develop significantly.
New Law in Germany
For many years now, the topic of gambling and legality has accompanied citizens and, of course, especially gamblers. Up to now, we have been constantly moving in a gray area where no one can really find their way around and there is absolute confusion about what is actually allowed and what is not. At the same time, a constantly increasing number of visitors can be observed, who choose an online casino and gamble there for the jackpot. In the future, however, things could change for online casinos. We take a look at the current situation.
As far as Germany in particular is concerned, Schleswig- Holstein has an absolutely unique selling point. Only in this federal state is gambling legal, unlike the other 15. However, gambling is only legal if you play in a casino that is also in possession of a license from Schleswig-Holstein.
This right is currently valid
Certainly already become clear that in the rights around online gambling is a big mess. In short, “actually” playing in online casinos is illegal in Germany. But as I said, it’s the “actually” that matters here. The main complication is that the State Treaty on Gambling in Germany is based on a national legal foundation. Basically, this treaty excludes the organization of games of chance on the Internet. This jurisdiction is justified by addiction prevention and protection against fraud. However, there are still legal games of chance in Germany, namely wherever the operator has a state permit and holds a corresponding license.
These include, for example, the state casinos or commercial slot machine operators, and also several online sports betting providers that have corresponding licenses.
The ambiguities caused by the gambling treaty
According to the still valid gambling treaty, each federal state regulates its gambling market itself. Accordingly, each federal state can therefore decide for itself whether or not to distribute a license. Of the total of 16 federal states, only the state of Schleswig-Holstein has taken advantage of this regulation. Thus, online casinos here can be provided with a corresponding license.
Although the offer applies exclusively to Schleswig-Holstein, it is nevertheless advertised nationwide. So it is little wonder that many players make use of this offer. In 2019, there was on the part of Hesse also the announcement to want to use this offer.
But currently there are still clear contradictions in the area of national law and European law regarding gambling. Probably the most discussed question is: “Is the German regulation on gambling compatible with EU law at all?” This question stems from the fact that the current approach is a violation of the freedom to provide services guaranteed under European law. Namely, according to the freedom to provide services, gambling operators are allowed to legally offer their services in all member states of the European Union, provided they have an EU license.
This is why licenses and seals of approval are so important
Every operator of an online casino basically needs a license. It applies that no one is allowed to offer gambling worldwide without this license. However, since there are significant differences especially in the licenses, it is even more important where the license of an online casino comes from. A reputable online casino has a valid license from an EU country. EU licenses are considered particularly safe, as very strict guidelines and quality standards apply to regulated gambling houses within Europe. This is especially true for licenses from the Malta Gaming Authority (MGA), the Remote Gambling Authority Gibraltar (RGA) as well as the Gambling Supervision Commission of the Isle of Man. These countries have particularly reliable and strict regulatory authorities and, in addition, the providers here adhere to a particularly strict code of conduct.
Online gambling is to finally become legal in Germany in the middle of 2021. Here, the new Glücksspiel-Neuregulierungs-Staatsvertrag, which comprises almost 70 pages, is to come into force. Currently, gambling is only allowed in the federal state of Schleswig-Holstein, but then the remaining 15 federal states are to finally follow suit. This regulation has long been longed for, especially because the boom of unregulated gambling on the net is very large. Most of these providers are at least based in EU countries. The new approach is now aimed at preferring to allow the games, but then to be able to control them accordingly.
With the new gambling contract, there will be a deposit limit in the future. In addition, all providers will have to set up a gambling account for each player. A user account will be blocked as soon as the player has invested 1000 euros per month. However, any winnings will not be counted towards the limit.
The new gambling treaty 2021 also includes a liberalization of the market. The implementation of youth protection is another important factor. For this reason, a new blocking file is to be introduced. On the one hand, it is intended to protect minors and, on the other, to ensure the protection of all players. In addition, all regulations will then apply throughout Germany in the future. Only casinos that cannot present a corresponding license will then be prosecuted.
The future regulations at a glance
The maximum deposit amount within one month for sports betting and online casinos will be 1,000 euros.
A higher number of betting licenses will be available for private providers in the future. Currently, the number was limited to 20 licenses per provider. The newly introduced blocking file contains all data of the players. The gambling agreement also provides for better implementation of youth protection and addiction prevention.
Betting on the number of goals is still up for discussion. The issue here is whether these should be abolished in soccer matches. The consequence would be that bets on an over/under or a certain number of goals would no longer be permitted.Further amendments to the State Treaty on Gaming provide that in the future it will be impossible for players to log on to several platforms at the same time. This is intended to make multiple participation in gaming impossible.
This measure is intended to protect people with addictive behavior in particular. The data of all players will be recorded in the future blocking files. This is intended to protect people with addictive behavior. In the future, all players will be monitored in detail in these blocking files. In addition, the data of these customers will be passed on to other casinos. In this way, a meaningful control is to be carried out. The protection of minors is to take a particularly important position here.