The Drawbacks Of Casino Gambling With Crypto
The global gambling market is projected to surpass $702.45 billion in 2023, despite the pandemic restrictions. This represents a considerable growth compared to 2022. Online gambling sites are expected to contribute significantly to this increase. While there may be doubts about the trustworthiness of online casinos, they can be a viable option for those aware of what to consider when choosing a site.
Overview of Crypto Casinos
Crypto casinos started in 2011 and have since seen the launch of several Bitcoin-based platforms. Bitcoin is the most popular cryptocurrency for transactions at these casinos, accounting for over 70% of usage.
One of the countries where crypto casinos are thriving is Finland. In 2023, the revenue in the online gambling market is estimated to be €1.13bn. It is anticipated that the revenue will grow at an annual rate of 6.98% (CAGR 2023-2027) and reach €1.48bn by 2027.
Tax-Free Gambling In Finland
The term verovapaatnettikasinot or “tax-free online casinos” is one which has drawn a great deal of attention to crypto casinos in the Land of a Thousand Lakes. Gamblers are not taxed on their winnings, except for lottery winnings. With regards to the lottery, winners must report their prizes on their income tax. Gambling companies in Finland are subject to various taxes, including taxes on their gross profits and the value of the winnings. But, for players, there is no better place to play.
Downsides Of Crypto Casinos
There are pros and cons to gambling with cryptocurrency. One of the drawbacks is that using cryptocurrency comes with its own set of disadvantages. Some of these include:
Less Government Oversight
Players in cryptocurrency casinos have limited options if any issues arise, as there is no license or regulatory body to turn to. It is worth noting that not all cryptocurrency casinos are unlicensed. Many of them are properly licensed and regulated. However, there are unlicensed cryptocurrency casinos operating as well. While a lack of license does not necessarily mean dishonesty, it does mean that if any problems arise, the player is left to handle them independently.
Converting Cryptocurrencies Can Incur Costly Fees
Deposits at crypto casinos can be done in two ways. You can use digital currencies or fiat currency to fund your account, and the casino will convert it for you. In the Bitcoin casino industry, there are platforms that offer both options, but some only accept cryptocurrency deposits.
Bitcoin casinos charge extra fees when converting your fiat currency to cryptocurrency. The amount of these charges depends on the cash you're converting. It's important to note that this currency conversion fee will also apply when you withdraw Bitcoin as fiat currency.
Volatile Value
Playing at Bitcoin casinos can have a downside - the high volatility of cryptocurrencies. The value of digital currencies can change rapidly, either going up or down. If players convert their fiat currency to crypto during a period of instability, they may end up losing money or spending more than they planned.
Crypto values can change rapidly, leaving little time for reaction. For instance, if you deposit $100 in Bitcoin at a stable price, you may receive a lower value if you withdraw during an unstable period. This is an important disadvantage to consider if you decide to use Bitcoin casinos.
The Downsides Of Untraceable Transactions
Bitcoin casinos offer anonymity, which is a positive aspect. However, we must acknowledge the concern of untraceable transactions. If there is a problem with your Bitcoin casino account, what happens to your balance? Refunds are not possible because digital currency transactions cannot be reversed or traced.
If you want to avoid losing money when the value of digital currencies goes down, you might think about storing them in an offline wallet. But there are other options available. You can still participate in a Bitcoin casino by making a deposit.
In Summary
Cryptocurrency has evolved significantly since Bitcoin's introduction in 2009. Online casinos, which are profit-oriented, are increasingly accepting cryptocurrency, indicating its growing popularity. Gambling with cryptocurrency has its pros and cons, but the choice ultimately depends on the individual and their preferences.