Nowadays, most online casinos offer payouts and take bets in cryptocurrency with Bitcoin (BTC) being one of the most popular options. And given how popular BTC has become in recent times, it’s easy to see why more punters are making use of it.
But the question is, how do online casinos get Bitcoins? After all, unlike fiat currency, Bitcoin only exists as a digital asset. So, it’s not possible for casinos to receive Bitcoin deliveries into their vaults.
Well, if you’ve ever been bothered by such questions, then today’s your lucky day as I’m going to show you how Casinos get Bitcoins. So, let’s get started.
1. From Customer Deposits
The easiest way for an online casino to receive Bitcoin is via deposits made by customers. Anyone who has ever played at an online casino knows that they need to make a deposit if they want to play.
That’s because online casinos use free spins and sign-up bonuses to entice new players. Oftentimes, the attraction of free spins and a sign-up bonus is too difficult to turn down. Still, in order to enjoy these benefits, punters must first make a deposit, in websites such as this one: https://www.bovada.lv/bitcoin
After that, punters need to play for a set period of time or win a certain amount of money to withdraw their deposit and any winnings. This system ensures that punters are unable to take advantage of the free spins or sign-up bonuses by creating multiple accounts.
And because deposits can be made with either fiat currency or cryptos such as Bitcoin, it’s also a great source of funds for the casino. Although the deposit will eventually be returned to the customer, these cryptos can be used for other purposes such as paying out winnings.
2. By Purchasing Coins
As online casinos are in the business of money, cash or cryptocurrencies are treated as just another resource to be used. Meaning that if the casino has to increase its Bitcoin reserves, its operators will need to buy crypto tokens from their chosen exchange.
They do so by trading fiat currencies i.e. the U.S Dollar for Bitcoins. From here, the Bitcoins are transferred into the casino’s hot or cold wallets for safe storage. The Bitcoins can then be withdrawn and distributed to winning punters
3. Through Direct Investment
Alternatively, online casinos can also receive Bitcoins via direct deposits from their operators. Sudden increases in demand for crypto may require an operator to deposit coins from their own holdings into the casino to keep things running smoothly.
Additionally, fresh Bitcoins may also come in the form of an investment from other third parties looking to purchase a share in the casino.
4. From Its Daily Operations
Another source of Bitcoins for a casino comes from its daily operations. For example, a casino that takes bets in Bitcoin is likely going to regularly receive tokens from gamblers. These coins are then transferred into the casino’s reserves for storage.
Why Are Casinos Accepting Cryptocurrencies?
Now that you know how casinos get Bitcoins, have you ever wondered why these operations are accepting cryptocurrencies?
Well, if you answered yes, then read on to find out.
1. Demand for cryptocurrencies
The popularity of cryptos, especially Bitcoins, has turned these digital assets into the next hot commodity. Because of this, more and more punters are looking to get their hands on cryptocurrencies and gambling at an online casino let’s punters do just that.
And due to their online business model, online casinos are perfectly positioned to accept cryptocurrency payments. These operations already have the infrastructure in place, and with just a few changes, they can easily start accepting crypto payments.
2. Privacy
The controversial nature of gambling makes it difficult for punters to enjoy what is actually a perfectly legal pastime. As a result, some punters place an especially high premium on privacy and anonymity.
And by placing bets with cryptocurrencies, they can do just that. The pseudonymous nature of Bitcoins and other cryptocurrencies means that an individual does not need to provide personal information like their identity or banking details.
Which is why online casinos are only too happy to cater to this requirement.
3. Investments
Given the decentralized and unregulated nature of cryptocurrencies, these assets tend to suffer from extreme levels of volatility. Because of this, Bitcoin and other crypto investments are regarded as high-risk assets with amazing rates of return.
Thus, it’s easy to see why a casino operator would consider accepting Bitcoin and treating their holdings as a type of long-term investment.
Closing Thoughts
Online casinos will only become more popular with time as the rest of the world embraces the digital revolution.
Plus, while it’s perfectly fine to enjoy games of chance, it’s even more important that you recognize your limits and minimize your risk exposure.
Also, do keep in mind that there are some fake online casinos out there, so always be sure to do your research.