Chatting with ChatGPT: The Crypto Gambling Market

How big is the market for crypto casinos?

“The market for crypto casinos, also known as blockchain casinos, is a relatively new and rapidly growing market. These casinos allow players to place bets using various cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and more. The use of blockchain technology in online gambling allows for provably fair games, greater transparency, and faster, cheaper transactions.

It is difficult to give an exact figure of the size of the crypto casino market, since it is a relatively new and fast-moving field. However, According to some estimates, the size of the global online gambling market was valued at around $45 billion in 2018 and it is expected to grow at a CAGR of 9.3% between 2019 and 2025.

It is likely that the crypto casino market makes up a relatively small portion of the overall online gambling market, but its size is growing as more and more casinos begin to accept cryptocurrencies as a payment option and more players are choosing to use crypto to place bets. Additionally, with the increasing awareness of crypto and its benefits in online gambling, it is expected that the market will continue to grow at a significant rate in the future.

It’s important to note that online gambling laws vary by country, and crypto gambling is not legal in all regions. Additionally, due to the decentralized nature of cryptocurrencies, it can be difficult to regulate and monitor these types of transactions, making it important to be aware of the laws and regulations regarding online gambling in your region.”

 

Chat GPT, why might more players start using crypto to gamble?

“There are several reasons why more players may start using crypto to gamble:

  1. Anonymity: Cryptocurrencies allow for a greater degree of anonymity than traditional payment methods, which can be especially appealing to players who value their privacy.
  2. Security: Transactions made with cryptocurrencies are secure and protected by the decentralized nature of the blockchain, making it harder for hackers to steal personal information or funds.
  3. Speed: Transactions made with cryptocurrencies are processed faster than traditional payment methods, which can be beneficial when it comes to online gambling, where players want to get started with their games as quickly as possible.
  4. Lower fees: Cryptocurrency transactions often come with lower fees than traditional payment methods, which can be beneficial for players who make a lot of small transactions.
  5. Decentralized nature: Transactions made with cryptocurrencies are decentralized, which means that no central authority controls them. This is an important aspect that allows for fairness in provable games.
  6. No currency exchange: As crypto are used worldwide, players can avoid the currency exchange fees, which can make a big difference in some cases.
  7. It’s a trend: With the growing popularity and acceptance of cryptocurrencies, more and more people are becoming interested in using them for online gambling.

It’s important to note that online gambling laws vary by country and crypto gambling is not legal in all regions, therefore players should check the laws and regulations of their country before engaging in online gambling with crypto.”

What’s the future for crypto gambling?

“The future for crypto gambling is uncertain, as there are several factors that could influence the growth and development of this market. However, there are some predictions that can be made:

  1. Increased adoption: With the growing popularity and acceptance of cryptocurrencies, it is likely that more and more online casinos will begin to accept them as a payment option. Additionally, as more players become familiar and comfortable with using cryptocurrencies, they may be more likely to choose crypto casinos over traditional ones.
  2. Regulation: As the crypto gambling market continues to grow, it is likely that governments and regulatory bodies will begin to take a closer look at this industry and may put in place laws and regulations to govern it. This could be both positive and negative for the crypto gambling industry, as regulations may help to ensure fairness and protect players, but also can restrict the growth of the market.
  3. Adoption of blockchain technology: More and more online casinos are adopting blockchain technology for their platforms, which allows for provably fair games, greater transparency, and faster, cheaper transactions. This could lead to an increased use of smart contracts and other blockchain-based solutions in the online gambling industry.
  4. Greater use of non-fungible tokens (NFTs): With the rise of the NFT market in recent years, it’s likely that online casinos will start to explore the potential of using these digital assets as a way to attract new players and offer new types of games.
  5. Increasing competition: As the crypto gambling market continues to grow, it is likely that there will be increased competition among online casinos, which could lead to better bonuses, promotions and overall better experiences for players.

Overall, the crypto gambling market is still in its early stages, but as more and more people become familiar with cryptocurrencies and blockchain technology, the future for crypto gambling looks promising. However, it’s worth noting that the regulatory environment for online gambling with crypto, varies around the world and could change in the future, and it’s always important to check your local laws before engaging in online gambling activities.”

Editorial Notes: Thanks for your thoughts, ChatGPT! The AI was not able to give us any brand names when we asked what the best places to gamble were and stayed neutral for making decisions on which crypto to buy. Chat GPT emphasised responsible gambling throughout our chat session and stressed that regulations vary country to country. We were very impressed overall, and once browsing is enabled it will be interesting to see more predictions and trends being outlined.

Cryptocrash continues: Binance And FTX Acquisition Deal

Binance entered into a non-binding agreement to purchase FTX Trading’s non-US unit on Tuesday to assist them in covering a liquidity crunch. The proposed deal between the two trading platforms was followed by speculations about FTX Trading’s financial health for a week. This resulted in $6 billion in withdrawals within 72 before the deal, raising concerns about its financial condition.

The two trading platforms did not disclose their agreement terms, but Binance released a statement saying they had significant concerns after a review, forcing them to exit the deal.

In their statement, they said they entered the deal hoping to support FTX’s clients provide liquidity, but the issues they found with the platform are beyond their control and ability to help.Bankman-Fried struggled to raise money on Monday night from venture capitalists from other investors before ha approached Binance. Zhao, Binance’s CEO, initially wanted to assist FTX but discovered mishandled customer funds plus alleged US agency investigations in the organization.

Many customers fled the exchange because they doubted if FTX had enough capital to pay out its investors. And of course the knock on effect is a drop in currency values across the market, reducing the spend value of crypto casino player’s wallets.

A crypto savior no more

This event comes as a shock to many people because people regarded Bankman-Fried as a crypto savior because he helped several crypto companies survive financial trouble earlier this year.

Some uncovered documents revealed that FTX had its finances intertwined with those of Alameda research, a trading and investment company by SBF. Although they were supposed to be separate companies, Alameda held a considerable amount of their balance sheet in FTT, FTX’s token.

The token was liquid, and the two companies owned the majority of the circulating token, and selling them would mean crashing the token’s price. This has left many investors wondering whether Alameda Research’s balance sheet had worthless FTT tokens whose value was less than FTX’s liabilities, making FTX insolvent.

Wall Street Journal also claims that Bankman-Fried requested $8 billion from investors to pay out withdrawal requests from investors, further illustrating how bad the company’s financial situation is.

In addition to backing out of the deal, Zhao announced that they would be unwinding their FTT token position over a few months. Binance was among FTX’s earliest and most significant investors, meaning they had many FTT tokens and a lot of power to affect the price.

This announcement made other FTT holders panic-sell their tokens and rush to withdraw their funds from FTX. This led FTX to eventually pause withdrawals on Tuesday morning, causing more chaos in the market.

This discovery has left FTX under heavy investigation by United States Authorities for the way it handled investor’s deposits.

Effects On Major Cryptocurrencies

Bitcoin has been the leading cryptocurrency in the market for years, but it experienced a drop in price to $15,840. This is over 13% lower than its previous price and the lowest since November 2020. Ethereum, another primary cryptocurrency, also suffered a 13% drop, hitting its lowest price since July 2022.

This uncertainty also affected smaller tokens like FTT, a token tied to FTX, which experienced a plunge of over 80%. Its current price is about $2.50, although it was worth ten times more when the week started. This made its market cap drop below $600 million from nearly $3 million at the beginning of the week.

Although this effect has mainly affected crypto tokens, it has also affected publicly traded exchange shares exposed to cryptocurrency. Robinhood shares, for example, went down around 14%, and Coinbase shares plunged approximately 10%.

While this failed deal does not affect FTX’s US entity, it will significantly impact the industry, with many investors and crypto buyers having less trust in other centralized platforms.

Slotie NFTs and online gambling

Slotie is a modern example of the practical application of blockchain technology. Over the previous few years, blockchain innovation has progressed significantly. It started with the launch of bitcoin and has evolved through to Non-Fungible tokens (NFT) and Decentralized Finance (DeFi).  Several blockchain applications have had an impact on particular industries, the most recent of which is the online gambling sector. The use of NFTs and DeFi in this area allows for the automation of online gambling activities without the need for an intermediary or third party. The conventional betting system has always had weaknesses owing to manipulation by these Intermediaries. Decentralized protocols however help to bring transparency and a smooth customer experience to the betting sector.

As their value and utility rise, NFTs are in high demand in the cryptocurrency world.

This article will look at Slotie, a unique ecosystem that is reshaping the online gambling business with NFTs and DeFi.

There are 10000 Slotie NFTs that act as tickets into the Ethereum Blockchain’s most prominent and fastest-growing online gambling platform. Owners of Slotie NFTs now have access to a whole new world of DeFi gaming.

The ERC-721 standard used for Sloties provides proof of ownership and allow users to join a developing Slotie community. Sloties, like all non-fungible tokens, are non-transferable. The rarity of these NFTs has an impact on a user’s revenue share from casino partners; the scarcer the slotie, the larger the income.

What Is The Best Way To Stake Slotie NFTs?

By integrating NFTs to slot machines, Slotie allows its members to earn prizes and become the house in 150 casinos. Users have the opportunity to make a lot of money by investing in any NFT they own. 

Furthermore, through the usage of slot machines, the invested NFTs allow casinos to acquire liquidity. This encourages people to visit casinos, which benefits the liquidity suppliers. Liquidity can be provided by the Slotie community in the form of Slotie NFTs or, alternatively, another NFT. Each Slotie NFT holder can stake one NFT at a time, thanks to a fair allocation of 1:1. This ratio ensures the fair spread of incentives throughout the community

A pricing algorithm determines the worth of a Slotie NFT introduced to the online slot game. The user can either accept or decline the recommended determined price.

If the NFT being staked is lost during a slot game this is the amount returned to the user. This estimate is made so that the Slotie platform may continue to be focused on the user and support its members. The ability for users is there so they can make educated choices about their NFT ownership.  Players can choose from a variety of alternatives depending on how much they want to bet per spin. As the house share is decided by the value of the NFT rather than its scarcity, all Slotie NFT holders can make an equal stake in the Slot machines. It is important to keep in mind that the higher the NFT’s value, the bigger the return.

A token called WATT, which works similarly to a gem in a game.

You earn it based on how you play and what you own. WATTs are gained on a daily basis in this scenario based on a Slotie’s attributes. The WATTs are a type of token that works as energy in the Sloties’ environment. They are produced every day and every Slotie owner receives 10 WATTs tokens daily. In three months, you will have enough WATTs to breed your Sloties. For those that can’t wait to get their hands on their Sloties, there is a secondary market. Here you can buy tokens from other owners.

Breeding is the most common application for WATTs. Breeding 1,800 WATTs and two Sloties creates a Junior Slotie. The Junior Slotie, on the other hand, does not appear to have any significant utility until at least the third quarter of 2022.

The inventors want to make WATTs valuable by giving them a purpose. Breeding opportunities, slot events, and possibly other perks will be available. But the actual goal is that WATTs will be worth money.

WATTs will be paid to Slotie owners, but they will need to be converted to Ethereum or another cryptocurrency. This will allow Slotie owners to cash out their benefits although a market for the token will need to be established. It seems that holders will not be able to generate WATT tokens for a few months yet however. A good sign and one of the best-kept secrets of NFTs is that the development team is frequently rewarded in tokens.

Future online gambling partnerships may be beneficial to Slotie NFTs owners, but that is still a long way off.

The company has aimed towards building a business model that is transparent and mindful of the players. It appears committed to its objective to empower its community with a decentralized and equitable profit distribution scheme. Users who stake their NFTs will receive 65 percent of the guaranteed profits generated by the partner casinos’ Slot games. The new Casino business plan from Slotie is a definite improvement over traditional Casino business models.

Holders of Slotie NFTs will be able to enter into a partnership agreement with Casinos and Elias Software without having to fill out additional paperwork. As part of the present deal, casinos pay Elia Software a gaming solutions commission of 12 percent of NFT slot revenue. Owners of Slotie will receive 80% of Elia Software’s monthly revenue.

Feature image – Slotie NFT @ slotie.com

Bitcoin trading floor to open in New York Casino

Former casino analyst Jason Ader is planning to open a bitcoin trading floor in his new New York casino. It is projected to cost approximately $3 billion to build.

The casino submitted plans at the end of last year to include the construction of a multibillion-dollar casino. Ader claims he will have the world’s largest bitcoin trading floor alongside many other modern and unique elements.

Ader hasn’t confirmed the actual location but he has stated he would prefer a Manhattan address.

In addition to boasting the world’s largest bitcoin trading floor, the casino will also have a landing pad for flying cars.

It will have an esports arena as well as an events space. The space could host functions during New York Fashion Week amongst other events. Although the expected cost is around $3 billion the eventual location will be a significant determinant of the cost.

The idea is to create a distinct but holistic approach to entertainment. Its ultimate aim is to go beyond the concept of normal casino gambling. If it gets the go-ahead it will undoubtedly be an attraction for gamblers from all backgrounds.

On December 10, the New York State Gaming Commission received the plans for the casino’s construction. The commission is also currently collecting information for the purpose of giving three new casino licenses in areas in the south of New York.

The three new casino licenses are the final ones to be approved as part of the 2013 ballot. Lawmakers created the ballot to enable the development of seven nontribal casinos. Four of which would be located in upstate New York.

Many other companies are looking for licenses to expand casino operations in Manhattan. MGM Resorts International and Genting Group, which has slot-machine parlors in New York City, are among those companies. Bally’s Corp and Las Vegas Sands Corporation are also both interested in expanding into Manhattan. According to Bloomberg, the latter has held early discussions with New York Mets owner Steve Cohen about building a casino near Citi Field. Long Island and nearby counties are additional possible locations for the pitching brands, given the potential opposition of local legislators to a Manhattan casino. According to a recent analysis by the New York Gaming Commission, three casinos entering the downstate region could generate additional revenue of up to $630 million per year.

Hard Rock International chairman Jim Allen announced in October that he also intends to submit an expression of interest for a New York casino license.

Ader plans to submit his offer through a new firm he is forming with Universal Entertainment Corp. He believes that this company will benefit from Universal’s experience in the gaming industry. UE Resorts International is a subsidiary of Universal Entertainment Corporation, a gaming technology provider based in Japan. Ader wants to call it Mirai which means future in Japanese.

UE Resorts plans to list its common stock on the Nasdaq at some point. According to the organization, the proposed casino with Bitcoin trading floor in New York City would most likely be the company’s only US operation.

Given that New York is becoming one of the most crypto-friendly states, Ader’s bid to construct this casino could not have come at a better time. Eric Adams, the newly elected mayor of New York City, has been advocating for a strong crypto agenda for some time. The mayor has even stated publicly that he will accept Bitcoin for his first three paychecks. Adams also intends to include Bitcoin and blockchain classes in the school curriculum.

New York is also becoming one of the biggest Bitcoin mining hotspots in the US.

Bitcoin mining companies have set up shop in the state since it has a suitably cool climate. It also has good accessibility to renewable energy sources.

Ader’s aspirations to develop a casino with a cryptocurrency trading floor are also more feasible than ever now that New York is a major crypto hub. The United States itself is one of the world’s largest crypto mining and trading hubs. According to a recent survey 25% of US investors own Bitcoin whilst another 60% are looking to acquire crypto assets.

Many members of the online community were delighted with the news, while others were less so. One poster on Reddit claimed that “if you want to have cryptocurrency legislated into oblivion, putting it on a casino floor would be the best way to go.”

Cryptocurrency will undoubtedly become more of a feature within both brick and mortar and online bitcoin casinos. Recently another company announced a $1 million poker tournament, the largest of its kind ever. Organizers will accept Bitcoin and other cryptocurrencies as buy-ins.

Last summer, there was also a competition with celebrities like Tom Dwan that raised $100,000 in cryptocurrency for the charity.

It is likely however the use of cryptocurrency at a casino may be subject to more stringent regulations. The head of the Securities & Exchange Commission, Gary Gensler, has previously compared the cryptocurrency industry to Wild West casinos.