How to Prevent Player Fraud: Blockchain in Online Casinos

In modern online casinos, a new trend has emerged – cryptocurrency betting. Owners of cryptocurrency wallets can deposit funds, play slots, and withdraw winnings in digital currencies – bitcoins, litecoins, ethers, and other coins. This technology of the future opens up great prospects for the gambling industry. Enthusiastic users appreciate the anonymity, financial independence, and fixed fees of cryptocurrency systems.

Why Blockchain Technology is Needed in Gambling

Organizers of gambling games generate enormous revenues. The overall financial profit in the gambling industry increases every year. More and more visitors are coming to casinos. Many of them earn money through mining and own cryptocurrency wallets. Online casinos always have a mathematical advantage over players, known as the house edge. Companies earn money on the statistical deviation of slots. However, in the short term, gamblers have good chances of winning. The use of blockchain technology opens new prospects for gambling:

  • Expanding casino customer bases;
  • Gaining gamblers’ loyalty;
  • Attracting random users;
  • Maintaining anonymity principles;
  • Ensuring transparency of winning algorithms;
  • Building trust among users.

Some people believe that casinos cheat players – not paying out winnings or taking money dishonestly. Hundreds of online establishments operate on the web. Most companies are honest and reliable. But there are also questionable resources that use scripted software, lack customer support, delay withdrawals of winnings, etc. Blockchain technology helps protect players.

Preventing Fraud Against Gamblers

To increase the likelihood of winning on slots and receiving cash prizes, one must choose casinos carefully. The club should have a license, verified software, reliable payment methods, a secure website, and a good reputation. An additional means of preventing fraud against players in casinos is blockchain technology:

  • Makes the gaming process transparent;
  • Maintains user anonymity;
  • Prevents withholding of winnings.

Cryptocurrency transactions, actions of the player, and the casino are displayed in an immutable public ledger, ensuring process transparency. Blockchain technology has a decentralized nature. Therefore, payment operators cannot withhold winnings or manipulate players’ funds. When funds are stored in a smart contract, payouts are made automatically, and casinos cannot obstruct transactions. Blockchain technology eliminates manipulation of software algorithms and guarantees fair play.