We’re always true to our word at Gambling Insider and, after publishing part 1 of BTCGOSU.com’s look into crypto casinos, here’s part 2 from the affiliate: the drawbacks...
Cons of Crypto Casinos
Naturally, it is not all gravy when it comes to crypto gambling. Even now, when many casual internet users hear the words Bitcoin/crypto and gambling paired together, they instantly think something nefarious is afoot, that these are unlicensed, unmonitored hubs operating in a Wild West-like landscape.
Even though this is not true, this site category has its drawbacks, which have hurt its reputation with some players and operators.
In recent times, the trustworthiness of this sphere took a substantial hit when many players’ doubts got confirmed that many Twitch casino streamers were faking their sessions, not really betting the funds they appear to wager on their streams.
Most of these fraudsters used crypto casinos, wagering insanely high amounts on slots for hours. That is something that even high-roller veteran gamblers would classify as unreasonable.
The truth is that most of these fake streamers play with demo funds, creating an unrealistic perception of the online gambling experience. Some renowned culprits outed by their fans and fellow gamblers for engaging in fraudulent streams include Casino Daddy, AyeZee and Rothstein.
One major downside of making crypto transfers is that if someone enters the wrong operator's wallet address, there is no way to retrieve those funds, as they get sent to an unknowing third party who will only notice a boost in their balance. There is no recourse to get those coins back, as there is with bank wire or credit/debit card transactions.
Naturally, it is not all gravy when it comes to crypto gambling. Even now, when many casual internet users hear the words Bitcoin/crypto and gambling paired together, they instantly think something nefarious is afoot, that these are unlicensed, unmonitored hubs operating in a Wild West-like landscape
It is not unusual for crypto casinos to market affiliate programs with up to 50% revenue share. An example of such a scheme is the Bitcoin Penguin Affiliate Programme, which claims to pay a lifetime revenue share of up to 50% to affiliate partners, with no mysterious commissions, in monthly payments.
Actually, numerous crypto casinos offer revenue share deals of up to 50%, or even more, and keep their word. Two prime examples are the BC.Game and the FortuneJack Affiliate programmes.
That said, the majority of crypto operators that house provably fair games list affiliate models unknown to the regular iGaming affiliate. Many of these pay commissions on a wagering base, with partners getting a percentage of the house edge of every bet, regardless if it is a winning/losing wager. What sounds terrific here often is much worse than getting a revenue share from an affiliate perspective.
Crypto operators with such models often justify themselves by claiming that their house-provably games have extremely low house advantages, which may well be true. However, the range of games on offer today is by no means limited to such games and affiliates earn the same measly commissions when their referrals play slots or live games.
In November 2021, the value of one BTC unit soared past $60,000. In 2022, it dropped to the $15,000 territory, proving just how volatile digital coins can be. The affiliate commission attained one day can be worth half the next amid public scandals or various news, making many wary about dipping their toes in these waters.
Less responsible gambling features
As most industry observers know, the Gambling Commission and multiple other European regulators started tightening things up on the responsible gambling front post-2020. That resulted in many markets getting hit with new player measures such as spin timers, the removal of auto-play functions and the implementation of mandatory universal self-exclusion programmes.
Since most crypto casinos have a Curaçao-based licence, they do not participate in any universal self-exclusion network, like Britain’s GamStop or Germany’s Oasis. Their licensees can only implement site-specific self-exclusion and allow players to set deposit/loss/session limits.
Moreover, they have unrestrictive gameplay. That means no obligatory wait times before slot spins and higher max bet limits, leaving those with little to no impulse control to overindulge in their gaming hobby.
In recent times, the trustworthiness of this sphere took a substantial hit when many players’ doubts got confirmed that many Twitch casino streamers were faking their sessions, not really betting the funds they appear to wager on their streams. Most of these fraudsters used crypto casinos, wagering insanely high amounts on slots for hours. That is something that even high-roller veteran gamblers would classify as unreasonable
No third-party dispute resolution
When using Gambling Commission-licensed UK sites, Brits get privy to third-party moderation via the Independent Betting Adjudication Service (IBAS). That is a third-party organisation that seeks to settle disputes between operators registered with IBAS, operating in Britain, and their customers in the UK.
It allows for unbiased dispute resolution. That occurs in most markets, where players settle their differences with their selected operator using the laws of their country.
At crypto casinos licensed by Curaçao regulators, disputes between affiliate partners and players on one side, and operators on the other, get handled by the laws of this Caribbean nation in its courts.
Most markets don’t regulate cryptocurrencies
In 2016, the Gambling Commission modified its License Conditions and Codes of Practice section and included digital currencies in its list of cash equivalents. Yet, other developed gambling markets in Europe and their regulators have not followed suit.
Moreover, in many betting-prone countries like Germany and Sweden, crypto gambling remains unregulated, and it isn't allowed at platforms regulated by these countries’ gaming overseers.
Top crypto casino brands
Undoubtedly, Stake.com is the world’s top crypto casino. Medium Rare, the company that runs it, has offices in Serbia, Cyprus and Australia, but has its headquarters in Curaçao. The Stake brand is primarily an internet sportsbook, and it works with the UFC, plus English Premier League teams Everton FC and (Championship side) Watford FC.
Stake.com’s main competitors include Bitcasino.io/Sportsbet.io, BC.Game, BitStarz, FortuneJack and7Bit. All five of these deliver vast game catalogues to players and seek to generously reward those who decide to call them home.
They also place substantial efforts into building a sense of community as a means of player retention. But, now that you've read both the benefits and drawbacks of crypto casinos, you should be well prepared to make your own judgements about who to work with and which areas to explore.