A number of global industries have become more receptive to cryptocurrencies and blockchain functionalities in recent years, from finance to agriculture. However, none have managed to build up quite so synonymous a relationship with decentralized sectors as the global gaming industry. As a market that’s long been on the cutting edge of technological innovation, gaming is a natural fit for the future-proof advancements that crypto and blockchain offer and there’s one sector, in particular, that is strides ahead when it comes to crypto integration.
The iGaming segment has undergone massive expansion over the past decade, boosted in no small part by a surge in popularity during the global lockdowns brought about as a result of the Covid-19 pandemic.
Crypto casinos have taken off at breakneck speed, with several established online gambling operators accepting crypto transactions and an array of new crypto and blockchain-based casino projects being launched. Crypto slots in particular, are proving to be a top-performing vertical and in this article, we’ll take a closer look at the development of this new trend, as well as what the future holds for crypto-based activities as a whole.
Understanding iGaming
While most crypto enthusiasts will likely be well versed in GameFi activities, iGaming could be unfamiliar territory. The term essentially refers to online real money wagering activities, so it encompasses things like remote poker tournaments, online sports betting, lotteries, and slots gaming. According to data gathered by Grand View Research, iGaming generated $63.53 billion in 2022, and is growing year by year at an average rate (CAGR) of 11.5%.
It’s easy to see why the sector is ripe for blockchain and crypto integration: the success of any online gambling platform hinges on its ability to process vast amounts of monetary transactions while keeping customer data safe and secure, for instance. Meanwhile, there’s already been a large appetite for digital assets and non-fungible tokens among modern gamers, meaning the learning curve for playing with and for cryptocurrencies is virtually erased.
Crypto Slots – A Deep Dive
However, given that the iGaming industry encompasses such a vast array of activities, all of which could be revolutionized by decentralized tech, why has crypto slots gaming taken off as successfully as it has? To answer this question, first we need to establish why slots gaming itself is such a universally adored activity (and has been for centuries).
Ever since Charles August Fey launched his Liberty Bell Machine in 1894, gamers the world over have been thoroughly enthralled by slots. Unlike, say, poker, which requires a solid understanding of not just the rules of the game but also the complexities of human psychology, virtually anyone of legal gambling age can get started playing slots in an instant. Slots are lightweight and accessible, and when you add in the potential to win substantial jackpot prizes, they become even more compelling.
What are Crypto Slots?
Crypto slots operate just like a traditional slot machine, in that they allow players to wager and win prizes with a monetary value, but there’s one crucial difference. Instead of playing with fiat currencies, gamers can play with and for decentralized tokens like BTC, ETH, and LTC. In terms of gameplay and game variety, crypto slots offer the same high-quality experiences gamers have come to expect from classic online slots, with crypto versions of variants like progressive jackpot slots in abundance too.
The Advantages of Crypto Slots
Compared to traditional online slots, crypto slots can provide a significantly higher degree of benefits to both players and iGaming operators. The advantages of decentralized currencies and distributed ledger technologies are well known, but they really come to the forefront when applied to the slots sector.
For instance, processing speeds in a crypto slots platform (or an existing casino that accepts cryptocurrencies as a payment and withdrawal method) far outperform those at a traditional gaming site. This is due to the peer-to-peer nature of crypto transactions, which eradicates the need for financial intermediaries, speeding up the process so that gamers can receive their winning payouts within hours or even minutes.
There’s also a much higher degree of transparency and security associated with playing crypto slots in comparison with gaming on fiat currency platforms. Blockchain technology is immutable, so it guarantees transparency when it comes to financial transactions. Since it’s virtually impossible to tamper with or change a transaction once it’s been recorded on a DLT, players can rest assured knowing that they genuinely own the assets they’ve won playing crypto slots.
There’s immense benefit to the iGaming operator here too, as blockchain tech can be used to guarantee that a gaming platform is provably fair, enabling them to meet stringent licensing regulations from gambling authorities.
Looking to the Future of Crypto Slots
All things considered, the future of crypto slots and crypto gambling appears positive, with continued growth expected in the coming years, particularly with the dawn of gaming in the Metaverse. As cryptocurrencies become more mainstream, we can anticipate the wider adoption of crypto payments in incumbent online slots and casino gaming platforms, as well as more variety in terms of the blockchain gambling projects being launched.
Alongside its continued growth there will be several challenges that lie ahead for the crypto iGaming market, including regulatory uncertainty. However, by working closely with regulators and implementing any necessary compliance measures, the industry should emerge unscathed.