The online gambling industry in the Arab world is still relatively new, with the first online gambling site introduced in the mid-1990s. Although still in its infancy, the market is growing rapidly. According to a report by Research and Markets, it is expected to reach $72.02 billion by the end of 2024, with a compound annual growth rate (CAGR) of 12.3%.
One of the key reasons for this growth is its readiness to embrace new technological developments. Many industries remain cautious about accepting these changes, fearing they may harm their business future. However, this is not the case with online gambling. Arabic bitcoin casino and gambling sites are known for being risk-takers, constantly adopting new trends to meet the ever-changing market demands.
Cryptocurrencies and Arab online casinos
The adoption of blockchain technology has been one of the recent trends in the Arab casino industry. Bitcoin paved the way for this change as the first blockchain-based currency adopted by casinos in May 2012. Shortly afterward, other popular digital currencies followed, including XRP, Ripple, and Ethereum. Recently, we have seen the emergence of new cryptocurrencies, particularly designed for the online gaming industry, such as CasinoCoin.
Cryptocurrency casinos allow people to deposit funds and withdraw their winnings in digital currencies. These casinos have completely revolutionized the industry as more people benefit from using them.
Benefits for casinos and players using cryptocurrencies
- Increased Security
Many people gambling online fear their banking information could be stolen by fraudsters. This year, Experian found that the increase in online gambling during the global pandemic led to a rise in online fraud.
Anyone who understands how cryptocurrencies work is likely aware of some benefits of blockchain technology. Blockchain can be defined as a database of information that records the source of digital assets in a way that is very difficult to alter. It is a digital ledger of transactions that provides an open record of every transaction involving value.
This makes using this technology extremely secure. Cryptocurrencies are easy to trace because each transaction has its own unique identification code. However, these transactions cannot be tampered with because all digital currencies are encrypted. This ensures that payments made using blockchain technology are more secure than traditional currencies. It also reduces the chances of unauthorized transactions online.
- Anonymity
Blockchain technology also provides users with complete anonymity while playing. Since no identity is linked to a Bitcoin wallet, players can feel secure knowing that no one can access their personal information. Instead, they can focus solely on their games without worrying about other users seeing their progress. Additionally, online gambling will not negatively affect players’ credit scores or their ability to borrow money. Cryptocurrencies will not be visible in any bank statements. When applying for a loan, banks sometimes review these statements to better understand spending habits. If they detect any gambling activity, they are likely to reject the loan.
- Speed
One of the most frustrating problems players face when gambling online is the number of hurdles they must overcome to receive their winnings. This is especially true when payments are made from international companies. SWIFT payments can take between 1 to 5 business days to receive casino payments, prompting many players to resort to traditional stores instead of playing online.
Gambling with cryptocurrencies like Bitcoin, Ethereum, or Litecoin prevents users from waiting long periods to receive their winnings. Cryptocurrency winnings are transferred to the player’s digital wallet immediately, allowing players to spend their winnings faster.
- Cost-Efficiency
Since cryptocurrencies are decentralized, there is no governing body that verifies the validity of transactions. When transactions are made with traditional currency, there are always additional costs and transaction fees required by banks. For example, if you use your credit card to gamble, you will be charged a cash advance fee. According to Finder, these transactions attract cash withdrawal fees ranging from 3% to 5% and a high annual interest rate for cash withdrawals. These fees are even higher if it’s an international transaction.
These additional costs apply to both the player and the casino. Gambling with cryptocurrency means eliminating these fees entirely or significantly reducing them. You can also convert this cryptocurrency into fiat currency without needing to visit the bank.
Conclusion
The use of cryptocurrency remains a widely debated topic. Some feel it is too volatile for the average investor; others believe it is the way of the future. But could integrating cryptocurrency into online gambling be a perfect match? It seems so.
Offering this payment option will allow online casinos to attract new customers and provide additional benefits to existing ones. Moreover, this digital currency appears to solve many of the problems facing the online gambling industry. Using cryptocurrency could be a faster, safer, and more cost-effective solution for both players and online casinos.