Any casino that supports cryptocurrency payments can be called a crypto-casino.
However, some casinos are already using blockchain technology when developing 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 may limit your portfolio of games to those that are also based on blockchain.
On the other hand, more and more casinos, Cookie Casino online among others, are choosing to accept payment in cryptocurrency alongside their existing national currencies. This gives them a wider reach in terms of both players and gaming content.
Are There any Drawbacks?
There are not many disadvantages of 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 lead 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;
- a license;
- software;
- games;
- payment systems (including cryptocurrencies);
- marteking.
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 their 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 true that some online casino platform operators avoid the application fees and licensing fees and taxes that come with a 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 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. For a platform to be fully functional, it 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 front end. 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.
Choice of Games
Your game content will mostly be determined by your market research. Instead of assembling the broadest lineup of games from scratch, it’s usually 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 have also been 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-1990s), 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 transactions with an e-wallet has become the norm, not uncommon, 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.
