How Crypto & Blockchain are Transforming the Australian Betting Industry

From the ashes of the 2007 financial meltdown, a new system emerged in a way that has forever changed the economic landscape.

Blockchain technology and cryptocurrencies have enjoyed a notable rise to stardom in the past decade, reaching unimaginable heights. These financial instruments have secured a significant place in the gaming industry. 

With the world gravitating towards virtual reality, the need for digital currencies promises to redefine the global market. As one of the quickest-developing industries, iGaming has established itself as cryptocurrency’s best friend, moving at the forefront of the technological and financial revolution. 

The gaming industry is hellbent on ensuring the worldwide acceptance of cryptocurrencies. For starters, the emergence of online crypto casinos is a first step towards ushering in a new era in the gambling world. 

Crypto Taking Advantage of Banks’ Notoriety

Authorities prefer to delegate the power to banks to control themselves, especially if they’re big. By being big, banks effectively get to continue to operate with impunity.

In isolated cases, such as the collapse of Lehman Brothers, which filed for bankruptcy in 2008, the government refused to bail out these gigantic financial institutions.

However, others, such as the notorious HSBC, continue to conduct their business without infringements despite being heavily linked with money laundering and shady deals for decades. Conglomerates of this magnitude are often considered ‘too big to fail’.

Even though substantial evidence shows these controversial establishments have no moral code, let alone work ethics, they’re allowed to operate with minimal repercussions.

But in the crypto world, the market dictates the trade and punishes the culprits, often ruthlessly. Here, no one is untouchable. 

FTX, once viewed as the JPMorgan Chase & Co of crypto, ceased to exist in a matter of days. When Lehman Brothers rode the world economy to the abyss, no bank official paid the price for the wrongdoings that initiated the most severe financial crisis known to modern society and ruined people’s lives.

Authorities arrested and subsequently convicted FTX co-founder Sam Bankman-Fried, who faced criminal prosecution in 2023.

Found guilty of all charges, Bankman-Fried is staring down the barrel of decades in prison for fraud and financial manipulations. His incarceration shows governments have zero tolerance for crypto, contrasting their flexible stance on megabanks. 

It’s one of the reasons people have grown to have more trust in this brand-new system at the expense of traditional banks. Then, there’s a line of credit.

Banks often refuse to give loans to gaming customers, deeming them unreliable. But with crypto, users rely on the mechanism to protect their anonymity.

Crypto’s Road to Recovery After Being Blacklisted by Australia

Crypto still comes with a significant dose of skepticism. For some individuals, it’s a source of insane wealth. For others, it’s a fairytale turned into a nightmare. But the fact remains – crypto is about to trigger fundamental changes within the betting industry. 

In Australia, 2022 was not a good year for crypto. Aussies were stripped north of $221 million to crypto hacks, raising concerns among the authorities over the system’s ability to stay immune to cyber threats. It has led to a relatively low adoption of cryptocurrencies among local online casinos and sportsbooks. 

Crypto is still far from becoming a mainstream payment method in Australia. However, the tide is changing. With more and more Australian betting platforms accepting cryptocurrencies, digital assets such as Bitcoin and Ethereum seem destined to gain a foothold in the country’s gaming market in 2024. 

As Australians increasingly explore diverse betting options, Australian betting apps, with their growing integration of cryptocurrencies, are gaining attention as a secure and wise choice for online wagering. 

Aware of crypto’s continuous growth, the Australian government has taken necessary steps to impose proper taxes. Crypto betting winnings are subject to taxation in Australia, like any other sort of income. 

Discretion, Transparency & Cost-Effective Transactions

Users are often sensitive when it comes to their privacy. While almost every online casino in Australia insists on ‘Know Your Customer’ (KYC) compliance, cryptocurrencies offer a tempting alternative.

One of the primary benefits of cryptocurrency adoption in the betting industry is enhanced discretion. Instead of providing personal information, users can rely on blockchain’s veil of privacy to safeguard their anonymity. 

In addition to allowing players to engage in gaming activities without disclosing their identity, blockchain’s transparent ledger keeps a clean record of all transactions, thereby enhancing trust and accountability.

Unlike the traditional banking system, which can often be slow and tedious, cryptocurrencies don’t only eliminate a third-party intermediary but also enable near-instantaneous transactions.

Conventional payment methods often involve considerable transaction fees, diminishing potential winnings. That’s where cryptocurrencies trump the banking system.

Without a third party taking its cut, crypto transactions command significantly lower fees. In the long game, it gives them the edge over established payment methods.

On top of that, the global economy has to combat the inflationary pressures that affect traditional currencies daily. However, due to a limited supply, Bitcoin is immune to inflation.

As fiat currencies face uncertainty in a global recession, cryptocurrencies have emerged as a potential safe haven for betting activities.

You probably wonder if there’s a downside. Well, cryptocurrencies have become synonymous with erratic price volatility.

How Australian Online Casino Transforming This Betting Industry

1. Transparent and Secure Transactions:
   • Blockchain technology makes financial transactions in betting more secure and less prone to fraud. It ensures that everything is transparent and can’t be messed with.
2. Smart Contracts:
   • Smart contracts are like automated agreements in betting. They use self-executing code to handle tasks, like automatically paying out winnings based on the results of events. This eliminates the need for middlemen.
3. Decentralized Betting Platforms:
   • Blockchain lets us create betting platforms where people can bet directly with each other. No central authority is needed, which means lower fees and more trust among users.
4. Cryptocurrency Payments:
   • You can use cryptocurrencies to pay for bets. This gives bettors more options and can make transactions faster. Cryptocurrencies also make it easier for people worldwide to get involved, as they aren’t tied to any specific country.
5. Data Security:
   • Blockchain keeps your personal and financial information safe in betting. It’s a big deal for privacy and protecting your data.
6. Regulatory Challenges:
   • The rules and laws about using blockchain in betting need to be clear. Governments should provide guidelines on important things like licenses, taxes, and making sure users are protected.
7. Asset Tokenization:
   • Tokenization is like turning assets into digital tokens on the blockchain. In betting, this could mean using tokenized versions of bets or even owning part of a betting platform.
8. Global Accessibility:
   • Blockchain and cryptocurrency tech make it easy for people from anywhere to join in betting. The rules of traditional banks do not limit you, and it opens up betting to a global audience.