Inside Asian Gaming

INSIDE ASIAN GAMING JAN 2019 24 COLUMNISTS In many ways, crypto is perfect for the casino environment. It is limitlessly divisible, transparent and liquid. One can easily use a “wallet” to send and receive as much (or as little) as they like and expect it to be validated safely and then spent outside of the casino without the need to physically convert currency back from casino chips. Why am I so confident of this coming change? Blockchain, which is the technology that underpins all cryptocurrency transactions, is quite simply ground- breaking. Simply put, blockchain is the system that allows the safe recording and transfer of data without the need for middlemen. It’s tamperproof, transparent and irreversible. When it comes to safety and transparency of records, blockchain has it all: fraud, identity disclosure and payment data vulnerability are all solved by the distributed ledger technologies (DLTs) that power blockchain. In their essence, DLTs hold the key to transforming the land-based gambling industry by facilitating products that are faster, more transparent and more secure. Currently, casino operators deal with an operational process that requires the physical creation and distribution of gambling chips that are used on gambling tables and are then converted back into cash when a player’s winnings are redeemed. This process is slow, expensive and insecure. Operators face several risks at every point within the process. Based on DLTs, crypto transactions will become far more frictionless and profitable to handle than traditional fiat – making it a far more attractive prospect for gaming operators and players alike. As we currently stand, many land-based casinos are suffering with falling revenues because of increasing competition and saturated markets. It is undeniable, “The ramifications this new technology is going to have on player and casino trust will be revolutionary and have the potential to change the following adage forever: ‘The house always wins’.”