Widespread Cryptocurrency Adoption in Canada Casinos
Cryptocurrencies first came into the picture in 2010 after Bitcoin was introduced. A programmer by the name Laszlo Hanyec made history as the first person to transact in BTC after purchasing 2 pizzas for 10,000 coins. Since then, the value of Bitcoin tokens has gone up by astronomical amounts and thousands of tokens and new networks have come up.
As the new form of digital payments evolved, various industries found new uses for crypto tokens, increasing demand for widely used tokens and creating new opportunities. Most notable is the NFT wave that took the world by storm in 2021, creating new sources of revenue for digital artists who created non-fungible tokens.
Online casinos were not left behind. Canadian operators who observed how NFTs revolutionised the art industry quickly began integrating crypto into their payment systems. Following this, players could make deposits in crypto to play real money games and withdraw winnings directly to their digital wallets. Today, Canada is home to many crypto casinos that offer reliable services and access to thousands of games. Some operators have taken things a step further by developing tokens for in-house use and to spice up their loyalty rewards systems.
Why Canadians Prefer Cryptocurrencies for Online Gaming
The number of Canadians choosing cryptocurrency payment options keeps increasing as the years go by and many casinos that shunned crypto as a fad are now adopting digital payments. The preference for cryptocurrencies can be attributed to a number of reasons.
- Spread of Cryptocurrencies : Over the years, more users have joined the blockchain and new custodial and non-custodial crypto exchanges have been launched. Following this, liquidating and acquiring crypto assets keeps getting easier.
- Anonymity : Transacting with digital currencies comes with a level of anonymity that you cannot get on fiat currency transactions. Therefore, players who like their privacy prefer playing on sites that offer crypto for payments.
- Transaction Speeds : Crypto transactions are super fast and allow players to start placing wagers within a short time after making deposits. Similarly, players can access their winnings sooner when cashing out via crypto compared to e-wallets and debit cards.
- Low Fees : Transaction fees on cryptocurrency payments are a fraction of the fees on traditional banking methods. In light of this, players opt for crypto casinos so they can have more to spend on games after making deposits.
- Regulations : Fewer government restrictions on cryptocurrencies create room for investors to fund new projects, resulting in exponential growth of the industry.
Upsides And Downsides of Crypto Gaming in Canada
Disruptive technologies like cryptocurrencies often face opposition from people who are used to doing things the old way. At times, the forces opposed to cryptocurrencies raise valid facts that users should consider when playing online. On the flip side, the advantages that come with decentralized financial systems cannot be ignored. So, it is up to individuals to weigh the pros and cons before making a decision on whether crypto gaming at real money online casinos is the way to go.
- Maintaining privacy : Choosing cryptocurrencies for transactions with online gaming sites helps to maintain privacy. You will still have to complete KYC verification procedures but the transactions are not directly linked to your profile, allowing you to separate gaming and personal transactions.
- New possibilities in gaming : Cryptocurrencies transformed the gaming industry by opening new avenues for entertainment. Software developers are in the race to create play-to-earn games based on blockchain technology.
- Fast transactions with low fees: With cryptocurrencies, you can make instant deposits and receive winnings the same day the casino approves your withdrawal request. In addition, payments made on the blockchain are cost-effective, meaning you get to keep a big chunk of your winnings instead of paying hefty fees on e-wallets and debit cards.
- Fairness on games: Crypto casinos can prove that games are fair due to transparency on all blockchain transactions. The blockchain is open to all users, allowing players to check the randomness of the outcome of each wager.
- Avenue for fraud and illegalities : The anonymous nature of cryptocurrencies opens avenues for fraud and illegal activities through casinos. In case this happens, operators risk losing their licences and being shut down.
- Irresponsible Gambling : Cryptocurrency payment options often have higher deposit and withdrawal limits. Players who cannot control themselves may find themselves spending huge amounts of cash in casinos since the caps on maximum deposit amount per transaction are way above the limits on other payment options.
The Cryptocurrencies Accepted in Many Online Casinos
Innovators develop concepts in the crypto space and seek funding from individual inventors or the community behind projects to bring their vision to reality. Projects with viable use cases achieve success after being adopted by many users and maintaining a large share of the cryptocurrency market. Thousands of projects have been launched, but few have stood the test of time and made it to top choices for online gaming in crypto casinos.
Bitcoin
Being the first ever decentralised finance token built on blockchain technology, Bitcoin set the pace for other cryptocurrencies and has the largest market capitalization. BTC is accepted in many crypto casinos and offers high transaction speeds and low fees. With many users trading BTC on exchanges, the network can suffer from congestion at times, resulting in delays. In addition, Bitcoin's value is very volatile.
Ethereum
Ethereum ranks second to Bitcoin in market capitalization and is widely used by innovators whose projects entail smart contracts. Due to the unique capabilities, crypto casinos looking to integrate a custom token for use by members on their sites build decentralized apps on the Ethereum network. Transactions are fast and secure but come with high gas fees. Another concern for users is the high volatility of the cryptocurrency.
USD Tether
USDT trades in the ratio of 1:1 to the American Dollar and holds the highest market cap among stablecoins in the crypto space. Since the price is pegged to the dollar, users holding USDT in their wallets don't have to worry about price fluctuations as is common with other crypto tokens.
Withdraw with Crypto On Casino Rewards Sites in 2024
Casino Rewards Group members sites adopted cryptocurrency options in the banking section in July 2024. For a start, players from Canada can only make withdrawals to crypto wallets in Bitcoin, Ethereum, or Tether, enabling winners to enjoy fast withdrawals and higher transaction limits. In addition, offering cryptocurrency options for cashouts is set to ease the disbursement of grand prizes won on progressive jackpots due to the high maximum transaction limits on cryptocurrencies. With this in mind, the million-dollar welcome bonuses offered after making small deposits by top Casino Rewards sites are set to draw in more players across all Canadian provinces.
Risks Associated with Unregulated Crypto Casinos
Since cryptocurrencies are fairly new, governments have yet to come up with laws to regulate the industry. In the same fashion, crypto casinos are mostly unregulated due to the unique anonymous nature of cryptocurrency transactions. The lack of clear structures comes with many risks for players. Therefore, Canadians should consider the risks associated with unregulated crypto casinos before making the bold step of playing on such sites.
- Rogue operators : Unregulated sites are not answerable to any authorities. Therefore, players risk losing funds and being subjected to unfair gaming practices.
- Insecurity : The large amounts of funds moving between individuals and casinos make crypto sites targets for hackers. In case of a successful breach, personal details can be exposed and customers can lose their hard-earned money.
- Money laundering : Unregulated crypto casinos could be fronts for money laundering set up by criminals. Unsuspecting users who innocently join such casinos can find themselves in the crosshairs of government institutions tasked with cracking down on criminals who obtain money illegally.
- Reckless gambling : Unregulated sites are out to milk money from players and therefore encourage irresponsible gambling. Such sites may not have tools to help you put self-limits on your account.
Rising Trends in Canada's Crypto Casinos
Canada has always been an attractive gaming market for innovative casinos. Therefore, crypto casinos setting up services tailored for Canadians does not come as a surprise. Upon realizing the great potential of cryptocurrencies, many existing casinos in Canada have updated the number of accepted banking methods to include cryptocurrencies. A good example is the move by the Casino Rewards Group, which manages operations on over 20 gaming sites, to begin accepting cryptocurrency withdrawals in BTC, ETH and USDT in July 2024.
According to statistics, only 30% of Canadian casinos accepted cryptocurrencies in 2023. In 2024, over 60% of existing online casinos in Canada allow crypto transactions, with the number set to rise by the end of the year. The average transaction size in 2023 Canadian casinos stood at C$100 with a total volume of C$500 million. These numbers have doubled in less than one year to the average transaction size of C$200 and a total volume of C$1 billion in 2024.
Rationale Behind Increased Use of Cryptocurrencies for Online Gambling
The advantages of using cryptocurrencies for gambling in Canada far outweigh the disadvantages. Therefore, the future of crypto casinos is very bright. Operators have experienced an increase in traffic on their sites after adopting crypto payments. In addition, new casinos have come up and introduced new ways of rewarding players. Developers have followed suit by creating games with reward systems based on blockchain technology.
With increased usage, the crypto gambling space will likely draw the attention of government and gambling regulation agencies in Canada. New regulations will likely be introduced to protect players' interests and new licencing bodies will hopefully come in to issue permits to parties in the industry. As things stand, crypto casinos are set to play a major role in the future of online gambling in Canada.
