The online gambling industry has no doubt been expanding at a remarkable pace over the past few years, but it finds itself unable to escape from rumours of manipulation and other types of cheating by casino operators and cyber criminals. The industry urgently needs to communicate to the world at large that the majority of gambling sites are well-regulated and also that online gambling is absolutely fair and reliable. If it is unable to gain the trust of potential customers, investors, and operators, then the industry’s growth will be hampered.
The biggest areas of mistrust regarding the industry are:
- Who owns the site, and whether it is owned by a well-established gambling organisation
- Whether the site is programmed with fair coding and whether it can be changed at any time
- How the numbers that result in wins or losses are generated
- What the house edge is and whether players have a reasonable chance of winning
The $45 billion online gambling industry is now turning to Blockchain technologies, amongst others, to ensure that the games are trustworthy and can be verified as such. The Ethereum network is one of the blockchain technologies that is most likely to be used for this purpose and it is likely to bring about an unprecedented level of transparency to the business. Interestingly, technology entrepreneurs are increasingly looking towards the online gambling industry because they correctly identify it as one that requires new and innovative gaming platforms.
Smart Contracts For Increased Transparency
There are efforts being made to develop the use of Smart Contracts to verify whether number generation is completely independent. This will also enable outside parties to verify whether rules and regulations set down by government and industry bodies are being followed. This level of transparency will definitely cause operators and others to stay away from tampering with the process of games. While Blockchain is definitely a way to approach this, as can be seen from the example of EdgeLess.io, the other approach is to use a Decentralised Autonomous Organization (DAO) which doesn’t permit any tampering. DAOCasino is currently trying out this approach.
Zero Edge Gaming for Increased Trust
Online casinos can gain the trust of players by offering zero edge gaming since they clearly have nothing to gain from altering the outcome of any game. EdgeLess.io is a casino operating on the decentralised Ethereum network and it hopes to attract customers by the concept of transparent operations and absolutely random gaming without any element of house edge. Tomas Lukosaitis, the founder of EdgeLess.io, is looking forward to expanding his business by gaining the trust of customers. He also pointed out that while there are already quite a few casinos that offer transparency by using an Ethereum or Bitcoin network, the concept of zero edge gambling hasn’t yet been explored at length, making this casino a very unique one.
Quick and Easy Gambling
The other advantage of using Blockchain is that it enables money transfers to be done quickly and with negligible cost. Players no longer have to worry about the fate of their money transfers because they get instant confirmations. Interestingly, these casinos tend to offer far better house edges than conventionally operated ones even if they don’t go all the way to zero house edge. They tend to have a 1% house edge whereas conventional casinos can take this all the way up to 15%, depending on the games.
The new business model using Ethereum and other technologies is certainly worth looking forward to. There is a very good chance that the online gambling industry will triple in size once its trust issues can be resolved.Read More