Throughout human history, gambling has been a ubiquitous activity, dating back to the Paleolithic era and persisting in every major civilization and society since. With the advancement of technology, gambling has evolved, with traditional brick-and-mortar casinos in major hubs like Las Vegas and Macau being supplemented by the rise of online casinos. These online platforms, many of which utilize cryptocurrency, have experienced significant growth in recent years. For instance, Stake, one of the largest online casinos, reportedly generated $2.6 billion in gross revenue in 2022.
In Episode 14 of The Agenda podcast, hosts Jonathan DeYoung and Ray Salmond delved into the world of crypto casinos with Zach Bruch, founder and CEO of MyPrize. MyPrize, a crypto casino that recently emerged from stealth and is now available for early access, was the focus of discussion. The conversation aimed to shed light on how crypto casinos operate, their role within the broader crypto ecosystem, and how they might be quietly bringing millions of users into the realm of Web3.
Are cryptocurrency and gambling a match made in heaven?
According to Bruch, the greatest application of cryptocurrency in 2024 will still be speculation. This is evident in the memecoin frenzy, which The Agenda just covered in-depth in Episode 34 with SideShift.ai's Andreas Brekken. Memecoins are quite popular "because people love to speculate," claims Bruch. Individuals are enjoying themselves with their pals. They are taking part collectively. They're speculating together and uniting over something.
Since the beginning of human history, gambling has existed. Risk-taking is something people enjoy doing. The best example of that is crypto.
Bruch perceives crypto casinos as entertaining venues where individuals can gather as friends to partake in risk-taking and speculative activities within a lively atmosphere. Notably, for MyPrize, the minimum bets can be as low as $0.01, enhancing accessibility for users.
However, managing an online crypto casino presents its share of challenges. Compliance with regulatory requirements is paramount, necessitating separate websites with varying functionalities for customers based in different countries, such as the United States, as observed with MyPrize.
Additionally, security considerations are crucial, particularly ensuring the robustness of code and smart contracts. This aspect gained prominence following a reported $41 million hack of Stake in September 2023. Bruch likened the operation of a crypto casino to that of a crypto exchange, emphasizing the importance of addressing concerns such as user account management, anti-money laundering (AML) measures, know your customer (KYC) protocols, fraud prevention, chargeback risk mitigation, and asset security. These aspects are integral to ensuring a safe and reliable platform for users.
Using gambling as a means of widespread adoption
Online casinos, according to Bruch, provide big on-ramps into the cryptocurrency ecosystem, as reported by The Agenda. He remarked, "The majority of people aren't even aware of this, but some of the biggest uses for cryptocurrency today are on-ramping into the casino space," with the potential to subsequently bring these patrons into the larger cryptocurrency ecosystem. According to Bruch, the fact that gaming has a long history of having a perfect product-market fit makes this easier.
"You have all these traditional people who aren't really involved in the cryptocurrency ecosystem or the cryptocurrency ecosystem as it currently exists, but they are avid players and bettors in online casinos, and they purchase cryptocurrency to use on these platforms."
MyPrize's long-term vision revolves around leveraging its platform as a gateway for users to enter the world of cryptocurrency, ultimately leading them to embrace Web3 technologies. According to Bruch, the strategy entails kickstarting the process by offering a compelling application that attracts millions of users to the platform. Subsequently, MyPrize aims to guide these users into a more expansive decentralized ecosystem. In essence, the casino serves as an entry point for individuals to familiarize themselves with cryptocurrency, paving the way for their continued engagement with Web3 technologies.
May 2024, Cryptoniteuae