Bitcoin casinos: Opening doors for online gambling syndicates

28 May 2018, by GambleScope Review Team

Bitcoin casinos: Opening doors for online gambling syndicates

When the iGaming industry began to adopt cryptocurrencies into their portfolio of payment options, they opened an entirely new portal into the future of online gaming. Now, savvy online gamblers can enjoy the full range of benefits that come with using popular cryptocurrencies such as the now famous Bitcoin as well as other such as Ethereum.

Cryptocurrencies allow for near-anonymous online gambling, making it much easier for players from exclusion lists to still play at popular online gambling sites. Cryptocurrencies are also viewed as a more secure form of online currency since, unlike fiat(real world) currencies, cryptocurrencies are not centralised and under the control of banks or governments. Anyone can purchase bitcoin, Ethereum and other forms of cryptocurrency online anonymously, without needing to divulge any personal details, credit card details, or any other kind of traceable identification.

However, as with most industries that are worth potential billions in revenue, the recent inclusion of cryptocurrencies and their related applications in online gambling are beginning to attract organised crime elements as well as gambling syndicates, who can see and exploit specific characteristic associated with cryptocurrencies.

How Gambling Syndicates Operate

Gambling syndicates may sound sinister to the uninitiated, and those directly linked to organised crime often are. However, a gambling syndicate can also be made up of "regular Joes" since the idea of a syndicate is to pool resources for a common goal or outcome. However, within the online gambling context, most gambling syndicates are very well-organised units, operating at multiple online gambling sites simultaneously.

If one considers that the only way any gambling syndicate can thrive in its purpose is to go completely undetected by its host (the online gambling site), then cryptocurrencies such as Bitcoin seem almost to be custom made for such a purpose. Since no actual details are required to use cryptocurrencies as a payment option at any participating online casino or sportsbook, how would a site even know that an online gambling syndicate is indeed operating on their platform?

The Multiple Benefits of Crypto Currencies to Gambling Syndicates

With its most obvious benefit being the ability to afford near-total anonymity to virtually any user, cryptocurrencies are the ideal tool for gambling syndicates, who by definition of their function require complete stealth, gambling syndicates can thrive as never before. Going undetected affords syndicates the ability to move through various online gambling sectors, adding many more strings to their collective bows.

In addition to anonymity, the value of cryptocurrencies such as Bitcoin is linked directly to demand for the currency. As more users adopt Bitcoin through online purchase, so the value of existing units increases. The holders of these units will then automatically, and passively, make a profit on their holdings. Thus, gambling syndicates operating in cryptocurrencies, either in league with other currency options or exclusively, are able to not only benefit from the crypto cloak it provides but also gain additional profits through its perceived and actual popularity on the web.