Crypto casinos are now the in thing. Players can conveniently deposit, bet, and withdraw using their favorite crypto coin. More so, they are known to offer faster transactions, lower fees, and high levels of anonymity. But before you jump into this dynamic trend, it is important to understand the impact of cryptocurrency on problem gambling.

Crypto Gambling Statistics

Despite its unclear and complex legal standing, crypto-gambling statistics hint that the number of gamers using this currency has been rising.

For example, a PlayToday survey in 2022 revealed that 27% of online gamblers in the U.S had used crypto in the past year. This was up from 18% in 2021. Also, the survey disclosed that the average player who uses crypto makes deposits of around $1,200 per month. This is twice the average deposit amount for all online gamblers.

Crypto tokens like Bitcoin and Ethereum have gained tremendous popularity globally. As a result, the number of legal crypto casinos worldwide has continued growing, with many players preferring these sites over traditional casinos.

Crypto Gambling: A Gateway to Addiction?

Crypto gambling is not just about virtual coins and bets; it goes deep into the human psyche. The benefits that come with it can sometimes become a problem.

Lack of legal framework

One of the main risks of crypto gambling is the absence of regulation to govern this type of currency.

Currently, the crypto space is a decentralized landscape. Unlike FIAT currencies, crypto coins are not backed or issued by any monetary entity or government – from which they can get authority as a means of transaction.

Due to their unregulated nature, crypto gambling sites offer little to no consumer protection. This results in poor measures to prevent players from problematic patterns.

For example, some crypto casinos only require as little as an email address to start playing, and it’s no secret an individual can create as many email addresses as they wish.

Others have no measures in place to deter gambling addicts from betting. One gambling addict who appeared in an NBC News interview attested that crypto casinos lack addiction-mitigation features commonly found in mainstream gambling platforms.

Another recovering addict by the name of Blake Barnard lost $300,000 to a gambling platform after it showed him how he could utilize cryptocurrency to bypass licensing laws and banking restrictions.

Barnard was winning his vicious fight against his gambling tendencies after his bank intervened and canceled his casino deposits. However, as highlighted in an interview with ABC, when the betting site noticed the canceled deposits, it contacted Barnard, suggesting he try using crypto.

The Anonymity Factor

Crypto coins are usually linked to a high degree of anonymity. This provides users with privacy not found in traditional financial transactions. While this privacy feature is priceless to many, it can also be a double-edged sword in the gambling scene.

Anonymity allows individuals to engage in crypto gambling without revealing their identities. This makes it challenging for friends, family, or even the individual themselves to track and control their gambling habits.

Lack of accountability can result in a sense of detachment from the consequences of excessive gambling.

Volatility factor

Every asset has a degree of volatility. However, crypto is perhaps one of the most volatile assets in the market.

The volatility factor works against responsible gambling. It may contribute to patterns conducive to addiction. Volatility combined with leverage triggers an immense dopamine rush. This leaves the player experiencing a great sense of euphoria during a successful trade. The player becomes conditioned to wanting to experience this repeatedly, resulting in compulsive trading behaviors.

How Casinos are Promoting Responsible Crypto Gambling

All said and done, most crypto gambling sites are taking huge steps to ensure responsible gambling practices are in place. They Include:

  • Transparent KYC: Crypto casinos are now implementing Know Your Customer (KYC) procedures. This helps in the identification of users exhibiting signs of gambling addiction.
  • Responsible Gambling Tools: Crypto casinos are also adopting responsible gambling tools similar to those in conventional online casinos. These tools include self-exclusion options and setting deposit limits.
  • Education and Awareness: Operators are taking a proactive approach by educating members about responsible gambling. They provide resources and access to support organizations for those needing help.
  • Blockchain Technology: Crypto sites are using blockchain technology to create immutable and transparent records of gambling transactions. This aids in monitoring user behavior and identifying potential issues early.

Final Insight

The intersection of crypto and gambling presents a landscape filled with rich possibilities and challenges. Thus, it is good to navigate this road with a cautious and informed approach, appreciating all the regulatory uncertainties and ethical considerations. Most importantly, responsible crypto gambling becomes crucial in this context.

Copyright 2021 - Please Gamble Responsibly