As a consequence of all the lockdowns and COVID-19 outbreak, which caused casinos and brick-and-mortar bookmakers to close, online gambling became more prevalent over the past two years. Digitalization led to tremendous growth in the industry. Additionally, with the current crypto-revolution and the increasing interest in cryptocurrencies, it is becoming increasingly popular to ask how to develop a Bitcoin casino. Our aim with this article is to give you an overview of the steps you need to take to set up a Bitcoin casino.
How Does an Online Crypto Casino Work?
It is crucial that you know what a Bitcoin casino is for starters and how it works before learning how to develop one. This will prepare you for creating the most successful online casino. Generally, a crypto casino is an online gambling platform, which uses blockchain-based technology to offer cryptocurrencies as a banking option, as well as the use of traditional payment systems for deposits and withdrawals. Crypto casinos are unique because of their use of smart contracts to block bets when players are gaming or paying. By using smart contracts, the process becomes reliable and automated.
What is Bitcoin?
Bitcoin is a virtual world crypto-currency that has been around since 2010, in which the cryptocurrency is created and transferred using cryptographic protocols that are independent of any central authority. To operate, the Bitcoin system utilizes the peer-to-peer model, in which all transactions and Bitcoin creations are performed by the network of Bitcoin users collectively.
Although Bitcoin is not a legal currency in any state, its popularity has skyrocketed in recent years, primarily because individuals can earn free bitcoins by just owning a PC and running the Bitcoin software, which will automatically generate bitcoins, and then convert those bitcoins into real money. Bitcoin's value has fluctuated greatly. After staying under 1500$ for four years, it saw a big increase in 2017 and reached the value of 20,000$ in value.
It is also important to keep in mind that the larger the number of Bitcoins mined, the harder it becomes to mine more Bitcoins, preventing people from rapidly accumulating a large number of Bitcoins. A maximum of 21 million Bitcoins can be sent over the Bitcoin network. The last Bitcoin is expected to be mined in 2140 after more than 16 million Bitcoins have been mined in less than 5 years, but the difficulty of the algorithms will make it impossible to mine more than 16 million Bitcoins per year.
Use of Blockchains in Gambling
Reports project online gambling's market value will exceed $160 billion by 2026, according to a study by Global Market Insights Inc. The report also notes that recent developments in internet infrastructure, mobile devices and IoT, and the introduction of blockchains and cryptocurrencies have led to growth in online gambling.
The problem with online casinos still remains, however, due to issues such as anti-money laundering standards, addiction issues, and the presence of affiliates in countries where gambling is illegal. Also, they must adhere to local and international law, as well as be regulated and taxed. However, these problems are a consequence of the fact that most online casinos are centralized. The majority of these issues can be resolved if online casinos are decentralized.
By securing the blockchain, fraud is eliminated, transactions are secure, and data is not altered or deleted. In this way, you have access to the history of winnings and payments in a safe, secure, and immutable form.
Blockchain technology maintains your privacy so that operators don't know who is playing on their platforms. It also prevents unauthorized access to your personal information.
Many people are uncomfortable with the idea of playing at an online casino because they feel that the system is designed to minimize the possibility that they will win and plundered their money. Using blockchain, users can look over the history of all operations, and there are crypto-enabled algorithms that guarantee that any random number generator (RNG) fraud or trick will not go undetected.
Online casino players have always had a difficult time withdrawing funds. Getting money can be complicated, particularly when dealing with various intermediaries and time delays. Smart contracts, which use blockchain technology to execute specific actions when certain conditions are met, are now available to the gambling industry. Through blockchain technology, withdrawing money becomes fast and easy.
Building a Blockchain Casino
Now let's talk about how you can create a Bitcoin casino. Launching a blockchain casino follows a similar process to starting a traditional gambling platform. It includes conducting market research, drafting project specifications, and acquiring crypto casino software.
It is vital here to choose a software development team with extensive experience since it is the most complicated part of the process. Be sure to hire developers who are knowledgeable about all the specifics of the industry and are able to execute your ideas at the best price-to-quality ratio. Find out if the company has experience implementing such projects by checking its portfolio and talking with its specialists.
Following the selection of your blockchain casino's development team, you will need to consider which features the site should have. It is important to understand how the number and complexity of functions within a crypto casino affect the development process. Furthermore, your platform's features determine its value to users, the experience they will have when using it, and therefore its marketability.
Features of Bitcoin Casinos
The following are the most popular and useful features for creating a successful crypto casino. However, these features are not all necessary to create one.
● Integrate a financial program that is capable of accepting Bitcoin.
● Flexible payment options with Fiat multicurrency acceptance.
● Implementing anti-fraud software helps you protect your platform and prevent breaches.
● Incorporating real-time chats will help players interact with each other, exchange ideas, and socialize more effectively.
● Provide live dealer games that create a real casino atmosphere and make every player's gaming experience even better.
● Use the RNG system as it ensures fairness and reliability.
● Introducing multilingual solutions gives players access to platforms in the language they prefer and are proficient in.
● If you do not plan on making anonymity your core feature, implement KYC.
● For a smooth gaming experience, use cross-browser and cross-platform compatibility.
Laws and Regulations
There are a lot of grey areas in crypto gambling law like there are in fintech regulation generally. Consequently, entrepreneurs are frequently confused about how to develop a Bitcoin casino, with all the contradictory facts and ambiguous decisions of government authorities concerning cryptocurrency. Aiming to run a legal business, you should try to determine if providing gambling services for cryptocurrencies is legal in your area, whether a blockchain casino needs licensing, and what countries can participate.
There is no single answer to the questions discussed above, but there are some important issues to consider before opening a Bitcoin casino. A growing number of nations are embracing cryptocurrencies and discussing blockchain-based services. Cryptocurrency, however, cannot generally be considered a real currency because there are no specific laws recognizing it. As crypto is not a «real» currency, any regulations regarding fiat currency online gambling do not apply.
Bitcoin transactions are private, so it's impossible to find out why or how you got crypto.
Curacao and the United Kingdom are two of the jurisdictions that offer licenses to casinos accepting cryptocurrency — which means they are taking responsibility for regulating crypto gambling operations.
However, back to the original question, does a Bitcoin casino need a license?
Do You Need a License?
To establish an electronic payment system and apply for a merchant account, an iGaming business needs a gambling license. When operated exclusively with cryptocurrency, the casino website handles all payment processing internally, without relying on third-party services to control the crypto payment infrastructure. As the casino's and the player's crypto wallets are virtually connected, deposits and withdrawals can be performed almost directly, removing the need for financial institutions to check gambling licenses.
Hence, if a casino accepts payments only with cryptocurrency, it is not required to have a gambling license for accepting payments. We recommend, however, that you check with the regulatory bodies of the regions where you intend to do business.
As for players, they perceive Bitcoin casinos as traditional online casinos. Players want to know their rights are protected by an independent regulator when transferring their funds to an online platform. Gambling licenses are important marketing tools that promote the loyalty of players and help to boost the casino's reputation.
Planning a Development Project
Throughout this section, we will explore the steps involved in creating an online crypto casino. Even if you hire a professional for this part, you have to have a basic understanding of it. Making sure you are aware of each step will minimize the risk of making mistakes.
Discovering a project's market and the audience is a key component of the discovery stage. It provides a comprehensive overview of the project goals and scope of work. Following the analytical phase of the discovery phase, we'll move to the technical side, during which our team tackles the question of how to build a crypto casino. In consideration of time, budget, and analytical outputs, experts create a technical plan, which includes project features, a suggestion for the technology stack, an overview of the architecture, a team lineup, and a budget.
Design teams determine the crypto casino's visual style during this phase. It includes visual content such as logos, photos, graphics, and video, as well as logic for positioning all user interface elements. User experience impacts user frequency and time spent on your platform. Adding an intuitive interface and creating an inclusive design based on users' needs will be made easier by experienced designers.
Generally, the development phase is the longest since it is the core of the whole process. The project manager oversees smooth cooperation between the development team and a client. The idea is to integrate all the information collected during the initial stages, to design the product logic, and to design the user interface. The development part involves the creation of databases, the implementation of features, and the integration and customization of game APIs.
Once the entire architecture and functionalities of the blockchain solution have been built, the testing phase begins.
Beta Testing and Launching
It is necessary to test the final version of the system to ensure it works as intended and that it is secure. To do this, certified quality assurance specialists perform testing on security, compatibility, functionality, and usability. You can use this phase to verify that your Bitcoin casino is ready to launch, has all the required features, as well as being secure. In a market where gambling already raises certain concerns for users, releasing an unreliable system is not a good thing. Testing is not to be cut short.
Other Things to Consider
When it comes to the best Bitcoin gambling sites, players are mostly looking for entertainment, but they also want to make certain they get their money's worth. They're most likely to value the crypto casino with the best welcome bonus. New operators should consider designing an attractive welcome offer that will make the potential players want to register and play.
Additionally, Bitcoin-specific promotions should also be carefully considered. Crypto casino players appreciate knowing that the operator’s generosity goes beyond their welcome bonuses. They usually prefer crypto casinos that continue to reward them after they've spent all their welcome bonuses.
Bitcoin Casino Advantages
Online casinos with bitcoins and other cryptocurrencies are advantageous from a strategic and competitive standpoint, and they're very popular with progressive players. As a new bitcoin online casino operator, you should take into consideration the following elements:
● The license will not cost you any money
● Activities such as these are not taxable
● The quick launch
● Improved anonymity for users
● Complete financial control
● A quick payment processing system
● Currency conversion from bitcoin to any other currency
● Irreversibility of payments
Increasing Demand for Crypto Gambling Sites
With the advent of cryptocurrencies, playing casino games at crypto casinos have become increasingly popular. According to various studies, crypto gambling users have surged in recent years. The US experienced a total increase of around 536.66%, the UK a total increase of 615.99%, India a total increase of 490%, Canada a total increase of 748.98%, and Germany a total increase of 1021.43.
A decade ago, Satoshi Dice launched the first crypto gambling platform, providing a crucial step in the industry's growth. People are drawn to the apparent advantages. Consequently, more and more crypto casinos are entering the market every day. Gaming, which is growing quickly, is one industry where crypto has a significant role. Casinos are making rapid progress, and experts believe blockchain will be the future of casinos.
A report by Research and Markets says that the online gambling market is forecast to surpass $97 billion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 11.31%. The market is estimated at $57.1 billion as of 2020. According to the report, crypto is a major factor driving market growth.