High Limit Gambling at Ethereum Casinos
For those of us that enjoy the thrill of an adrenaline rush, they may opt to climb a mountain, trek through a rainforest, or maybe go for a sky dive. However, if high limit gambling is more your thing, then the innovation of digital currency and the cryptographic blockchain has created some new and exciting opportunities. Draconian bookmakers and online casinos can be overly restrictive when it comes to stake limits, with operators either concerned that a player has an advantage over their in-house trading team, or that their respective national regulator demands enhanced customer due diligence controls before the player can increase their bet size.
Nevertheless, these unwanted burdens are now a thing of the past, with the rapid growth of casinos operating on the Ethereum blockchain. This brief article will consider the underlining issues that players face at conventional fiat casinos, and how the technical innovation of the cryptographic blockchain has alleviated these concerns.
Online Casinos Limiting Player Stakes
Traditional fiat casinos operate in a highly regulated industry. As a result, major operators will often need to go through a stringent due diligence process in order to obtain a license from their respective national regulator. Due to the amount of red tape that the sector is required to go through just to start trading, casinos are reluctant to fall foul of the vast regulatory conditions that are set upon them.
Subsequently, players find themselves in the unfortunate position of having their stake sizes limited. This is often because the casino is required to execute Know Your Customer controls, whereby they must perform enhanced identity checks before they can facilitate a smooth gambling experience. A further hindrance that players often face is an unwelcome battle with their debit/credit card issuer. Financial institutions often treat online gambling transactions with extreme caution, consequently blocking player deposits, or limiting the amount that can be spent. Therefore, conventional online casinos do not provide a high limit player with the facilities to gamble issue-free. So how can the Ethereum blockchain remove these hindrances?
Eliminating Regulatory Burdons
One of the key fundamental benefits of the virtual economy is that users have the ability to remain anonymous. This is highly relevant for the online casino industry, as operators accepting cryptocurrency as its primary payment method do not need to identify their players. As a result, a banking institution’s role as the third-party intermediary between the player and casino is now redundant. Instead, by depositing and withdrawing funds with a digital currency such as Ethereum, users are free to transact without requiring pre-authorization. Subsequently, gamblers can now decide how much of their own money they want to spend, which has opened the doors to high limit players.
It also highly relevant to briefly mention the issues that traditional card issuers present for both the player and the online casino alike. Transaction fees can be very costly, with charges often ranging between 2-5% of the total deposit amount. Unfortunately, casinos must pass these costs on to the player, either directly from the amount deposited, or by lowering the house-edge on its games.
On the contrary, Ethereum transactions carry ultra-low fees in comparison, often resulting in less than a percentage point of the total amount. Furthermore, although debit/credit card deposits are usually instant, withdrawal can take days, sometimes weeks, before they are returned to a player’s bank account. In contrast, withdrawals made on the Ethereum blockchain can be processed in a matter of minutes.
Ethereum Casinos: The Solution for High Stakes Players
Now that we have discussed the huge regulatory disparity between conventional fiat casinos and Ethereum casinos, what options do high stake players have to gamble in a secure and safe environment? The first option is to use a centralized crypto-operator such as Betcoin, whereby the player places their bets directly with the online casino. This particular casino offers a maximum bet size of 55 Eth on several of its table games, such as Blackjack and Roulette.
The second option for high limit players is to opt for a decentralized casino, who utilize the benefits of Ethereum’s smart contract phenomenon. Essentially, this goes one step further and removes the role of the casino operator in managing the player’s account. For example. DAO.Casino have installed an eco-system platform that is facilitated by decentralized apps, meaning that game developers can create bespoke casino games playable by anyone with an Ethereum address.
Depending on the bankroll of that particular gambling product, high limit players have the freedom to gamble as much as the smart contract is willing to facilitate. This is further supported by the ability for multiple users to bankroll a specific smart contract, thus, increasing the amount of funds available to stake.
The endless capabilities of the Ethereum blockchain have removed many of the negative aspects of the online gambling industry. No longer do players need to rely on their banking institution to facilitate high limit deposits, and nor do they need to worry about the endless amount of regulatory red tape that casinos must implement in order to appease national legislators. By allowing players to remain anonymous, and avoid using fiat currency, Ethereum casinos can provide high limit players with the facilities that they need. This vastly improved gambling experience can only grow stronger, with more and more casinos joining the cryptographic revolution.