The casino and online gambling industry is a multi-billion dollar industry. By the year 2021, the worldwide market for online gambling and betting had grown to a staggering $61.5 billion. In 2028, this is expected to increase to 114.4 billion USD, a growth rate of just over 86%.
This rapid growth of cryptocurrencies has impacted online betting and created a crypto casino and gambling industry.
Driven by affordable smartphones, better broadband infrastructure, availability of cryptocurrencies and blockchain technology, the industry is set to grow to be worth about $93 billion by 2024.
Despite this rosy future of crypto casinos, they are plagued with challenges, including regulatory issues in countries that prohibit gambling, lack of clearly defined cryptocurrency laws, money laundering, volatility of cryptocurrencies, and gambling addiction, among others.
Notwithstanding these challenges, creating a crypto casino remains a smart investment. This article will examine crypto casinos, how they operate, and how to develop them. You can launch your crypto casino business quickly with the help of Code & Care’s blockchain development expertise.
In this article, we’ll discuss what crypto casinos are, why they’re useful, and how you can start your own.
Table of Contents
What Is a Crypto Casino?
A crypto casino is an internet-based casino where digital coins are used to make transactions apart from or instead of fiat currencies. Games, including baccarat, roulette, scraps, and sports betting, are all available on crypto casinos.
One key benefit of crypto casinos is the anonymity it affords users due to the security of using cryptocurrency.
In contrast, traditional payment options with debit cards and fiat currencies put users’ identities at risk. The game changer for online casinos is the deployment of blockchain technology which promotes fairness, speed, and security of funds.
Blockchain technology runs on the principle of distributed ledger where blocks of data are stored, and this data becomes almost impossible to alter, thus preventing fraud and cheating. For example, the use of blockchain technology in the insurance industry has aided the detection of fraudulent claims.
How Does It Work?
Much like traditional casinos where a player has an account where he deposits into or transfers money for gambling, they need to develop a crypto wallet where players deposit their virtual currencies.
From there, they can gamble and play other virtual games on offer. When such a player makes a profit on his wager or games, it is transferred into the account from where he can transfer it to his private account.
Advantages of Building an Online Crypto Casino
Crypto casinos are increasingly popular among the online gambling community, and the reasons are not far-fetched. Here are some benefits of building an internet casino.
One of the problems of operating a traditional casino is dealing with losses occasioned by fraudulent transactions by dishonest players. To prevent this, casinos usually spend a small fortune to keep these shady characters away.
On the other hand, crypto casinos use blockchain technology based on distributed ledgers viewable by the sender and receiver of cryptocurrencies to ensure transparency in transactions.
Not all gamblers want their identities known due to their social status or local laws and customs that frown on gambling. Crypto casinos afford these players the luxury of having their identities private.
Most cryptocurrencies use an address only and do not require any personal details of the crypto holder.
With a smartphone and internet service, a player can easily access online casinos anywhere and anytime via the casino web app.
In addition, cryptocurrencies are available everywhere in the world at the same value every time. These two factors make online crypto casinos an easy option for gambling enthusiasts.
As with anything on the Internet, virtual gambling sites are open to everyone with internet access globally. Coupled with the availability of cryptocurrencies globally, virtual casinos have unlimited reach.
Online casinos have a diverse clientele from different countries who can simply play virtual games from anywhere, unlike traditional casinos that the local populace or tourists only patronize.
To create your crypto casino, you need a software development team to build the product rather than hectares of land or physical roulette tables. With online casinos, you save a fortune in overhead costs, which can be channeled into offering bonuses and promos to attract more customers.
More to crypto casinos’ affordability is the low transaction fees involved in depositing and withdrawing winnings, unlike fiat currencies which attract bank charges and conversion charges.
Cryptocurrencies That Are Ideal for Online Gambling
Since 2009, when Bitcoin entered as the first cryptocurrency, thousands of cryptocurrencies have been created. The ease of creating a cryptocurrency using blockchain technology has aided the proliferation of digital coins in the market.
As of October 2022, there are an estimated 10,000 different cryptocurrencies. While most of these coins are largely unknown, a few are suitable for online casinos.
Bitcoin heralded the introduction of crypto assets in the financial services industry and, within about ten years of its introduction, traded at an all-time high of $65,000 in 2020.
As a forerunner of other cryptocurrencies, Bitcoin was designed to operate virtually and is a perfect coin for internet casinos. Due to the popularity of bitcoin, it is no surprise that it controls about 71% of the crypto casino industry.
Some benefits of using Bitcoin for crypto casinos include the following:
- Bitcoin is available on crypto exchanges.
- Deposits and winnings in Bitcoin are not subject to taxation.
- BTC is easily convertible to cash due to wide acceptance.
- Bitcoin payments process faster than fiat payments.
Besides Bitcoin, a couple of other cryptocurrencies have emerged. As shown in the below image, cryptocurrencies developed to address these issues of Bitcoin are called altcoins. One such is Ethereum.
It is the second most recognizable crypto globally. It was designed to be a faster version of bitcoin.
Ethereum has become a decentralized platform that allows other cryptocurrencies and NFT games to be built on, making it the most suitable cryptocurrency for online casinos.
Some benefits of Ethereum are:
- Ethereum is more compatible with the multiverse due to its blockchain.
- Cheaper and more affordable than Bitcoin
- Faster processing time for payment is often less than 2 minutes.
- Its volatility can increase payouts dramatically, even while playing.
- Reduced transaction fees compared to Bitcoin.
Tether is the most popular stablecoin around. As a stablecoin, its value is pegged to the US Dollar, which ensures that it is less volatile than other cryptocurrencies.
Some benefits of using Tether include:
- A stable and reliable value that does not fluctuate during gameplay.
- It is easy to use for beginners as it is like regular money.
- It requires less formality and ensures rapid transactions.
- It is easily accessible on crypto exchanges.
Litecoin came about as a digital asset to complement Bitcoin and be a lite version, as the name implies. Transactions using litecoin take less than a minute to complete.
The benefits of Litecoin are:
- Faster speeds mean quicker payment settlements for both casinos and players.
- Compared to Bitcoin, it has lower transaction fees.
- It is cheaper and affordable.
Monero is the best exponent of cryptography in digital coins. Assimilating security features like bulletproofs and stealth addresses, Monero is ideal for players looking for complete anonymity. An online casino accepting Monero will attract more secret players and VIPs.
The benefits of Monero are:
- Enhanced confidentiality due to its non-traceable transaction history.
- Monero’s proof-of-work algorithms ensure high standards of transparency.
- The cost of a transaction is significantly cheaper.
Binance Coin (BNB)
Native to the Binance blockchain, one of the top crypto exchanges. Binance coin offers great discounts to its users when used on its exchange platform. It is easily recognizable and cheaper to afford.
Some benefits of BNB include:
- Easily accessible on most crypto exchanges
- Quicker transaction time
- Cheap transaction fees.
Ripple coin was created as a means to quicken inter-bank transactions. Ripple coin enables the international transfer of funds and quick currency conversion in payment settlements.
This feature makes Ripple perfect for online gambling, especially for international gamblers who might need to exchange fiat currencies for cryptocurrency.
Some of the benefits of Ripple are:
- Perfect for international transfers and currency conversion.
- Low charges for transactions
- Notably cheaper to afford, usually less than $1
Steps for Creating a Crypto Gambling Website
To create a crypto casino, you need to be informed on the technical steps from conception to delivery of the website. Below is a guide on how to create your online casino.
Step #1: Market Research
Conducting market research is the starting point to getting your online casino running. The market research gives you an insight into your likely competitors: their strengths and weaknesses, the profitability of the business, and the target audience, among others.
During market research, you will know the kind of games your potential customers expect, the type of bonuses to attract customers, cryptocurrencies to use, and whether to incorporate a mobile app with the website.
Market research is done through interactions on active forums and communities such as Quora and Reddit. It can also be done using surveys, interviews, and analyzing historical data to predict the future behavior of people toward the product.
Step #2: Monetization
Every smart investor aims to make a profit from their investment. Monetization refers to the means or methods of generating revenue from a tech product. You need a well-developed crypto wallet to receive deposits and payout winnings in digital coins for a crypto casino.
You can monetize your crypto casino in any of the following ways:
- Transactions can be charged a commission. For example, a portion of deposits or winnings used to cover operating expenses.
- A virtual casino, like a traditional casino, makes money by offering games with a house edge. In terms of winnings, the casino is always ahead of the player. Casinos generate more revenue than winnings paid out to players using this monetization method.
- Another way to make money is through advertisements placed by other brands on the casino’s website. The casino earns money through commissions on each player who views advertisements and signs up through affiliate links.
- You can charge a fee to players before they play, just like a traditional casino.
Step #3: Hire a Software Development Team
No doubt, building an online casino is a very technical endeavor, and you need the right team to deliver your goals.
A typical development team should include back-end and front-end engineers, a QA engineer, UI/UX designer. Ideally, you should hire a dedicated software team to handle all aspects of software development. You can also use an outsourced development team, especially one with experience in blockchain development.
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One benefit of outsourcing is it gives you access to a more diverse talent pool of developers from around the world. Additionally, hiring an outsourcing provider is cheaper as you don’t have to incur overhead costs like renting a workspace or acquiring work stationery and equipment.
Step #4: Development
After hiring the software development team, it is time to get your ideas across. Product development involves all stages of conception, design, and marketing to release the product. Part of the development stage is market research.
Once assembled, the team brainstorms and develops a product roadmap. The product roadmap gives you a clear idea of when the product would be ready for launch and it also outlines the cost of development and the roles of each member of the development team.
You should also note the features and tech stacks your team will be using.
Listed below is a table that should help you prioritize the most vital crypto casino features.
|Users would need to enter some details to identify the individual player.
|This feature will include a crypto wallet to store deposits in crypto and to payout players
|For a website with huge traffic, you need 24/7 customer support or CRM to service enquiries.
|Casino games catalog
|Attracting more players to the website will depend on the variety of games available. The different game categories will be housed in a catalog.
|This feature makes it possible for players to deposit, withdraw, and swap cryptocurrencies.
|A fiat-crypto system allows users without access to digital currency to deposit or withdraw their earnings as local currency.
|The safety of your crypto casino is ensured by the KYC (know your customer) system. This feature collects and stores detailed information about each player. If you aren’t banking on anonymity being your unique selling point, KYC is something you can do.
|Multilingual capabilities simplify the user experience by letting players interact with the platform in their native language.
|Multiple browsers let players enjoy a consistent gameplay experience regardless of the browser they use or the device they play on.
Incorporating these features into your casino requires the right tech stack. For customer support. The product roadmap gives you a clear idea of when the product would be ready for launch and it also outlines the cost of development and the roles of each member of the development team.
Step #5: Design
At this stage, visually appealing features such as logos, banners, images, videos, and graphics are added to the website. The UI/UX designer takes center stage here, and the goal is to enhance user experience and the user interface.
The design stage incorporates all the unique details of your casino product. For instance, the crypto wallet linked with your casino is incorporated in this stage.
Step #6: Testing
Testing is the stage where the product is validated to check for any issues which may affect the final product. The product’s functionality is tested at this stage to detect and fix errors in the product.
Before a product is released commercially, a beta version is first released for testing. The Quality Assurance Engineer performs tests to check key metrics, including compatibility, security, and functionality.
Naturally, crypto casinos’ users are concerned about their funds’ security, so you must test the product to check its security.
Step #7: Maintenance
After the website or product is launched, it is important to maintain the smooth running of the product through system upgrades, fixing of bugs and glitches, and version upgrades. Maintenance is necessary to avoid a future website or web app crash as more traffic is directed towards the product and more games are added to the crypto casino.
How Code&Care Helps You Build a Crypto-powered Gambling Business
In summary, the above is a guide on how to start a casino business. The prospect of growth of online crypto gambling as a viable business is promising and should interest any investor. However, to get a clearer picture on the technical details, you need a team with expertise, like Code & Care to help you create your crypto casino.
At Code & Care, we take a collaborative and client-led approach to developing tech products and delivering on projects. Our portfolio bears credence to the kind of related projects we have been able to accomplish for clients, including NFT wallet development, cryptocurrency exchange development, etc.
We are dedicated to going the distance with you to get your product on the market in record time.
Contact us today for your project, and let us help you achieve your dreams.