Blockchain in gambling: how decentralized online casinos work

Blockchain in gambling: how decentralized online casinos work

Today the distributed ledger technology finds its use in gambling. In December 2018, money turnover of blockchain casinos amounted to $1.286 billion.

Let’s analyze how blockchain casinos work, which problems the technology solves in the gambling industry, and which gambling sites have implemented blockchain technology.

What is a blockchain casino?

blockchain casino

Blockchain casino is an online gambling site based on the decentralization. Here, all monetary operations such as transactions, winnings, losses, deposits, and withdrawals are recorded in the distributed ledger. Any network user can check the data meaning that blockchain casinos offer total security and transparency.

There are three ways to integrate blockchain with a casino:

  • games are partially built on smart contracts using transparent algorithms for number generation;

  • games are totally built on blockchain being a decentralized app;

  • games use cryptocurrencies allowing users to make quick and transparent transactions.

In any case, blockchain casinos offer advantages for both players and operators. Users can feel secure that the platform supports fair play and business owners gain high level of trust in the site.

How blockchain solves problems of online casinos

How blockchain solves problems of online casinos

Thanks to the decentralization, blockchain can solve the main challenges that users may face and offers a range of benefits.

Transparency and trust

As blockchain provides open access to game rules and data about winnings, it is simple to check data. As a result, players can be sure that decentralized casinos function fairly. Besides, users know that they will receive their winnings for sure and correspondingly the trust in operators is growing.

Anonymity and security

Blockchain sites allow playing casino games anonymously. Such casinos do not demand that players file documents, specify account numbers, or bank details. Users do not have to provide personal data and some blockchain lotteries do not even require setting up a profile.


At traditional online casinos, there are risks that the site freezes a player’s account and cancels his or her transaction. Blockchain wallet is hardly possible to block, thanks to which players are sure in the platform’s credibility.

Speed and transaction fees

At blockchain casinos, one does not have to wait for the money transfer to be processed, as transactions are run faster than on traditional gambling sites. Besides, users do not pay transaction fees, as decentralized platforms do not need intermediaries for making payments.

Blockchain use cases in casinos


FortuneJack casino has been operating since 2014. Users can play around 300 games where payments are made in cryptocurrencies only. The casino supports BTC, LTC, DOGE, and DASH.

The site offers a wide range of slot machines from different providers and has promotional offers for players.

1xBit Casino1xBit Casino

1xBit Casino provides a variety of offerings from famous game providers, 3D slots, and live games.

The platform promises a simple registration process, instant deposits and quick withdrawals, as well as many rewards and bonuses.

Players can make deposits in such cryptocurrencies as BTC, LTC, ETH, DASH, DOGE, NEM, and ZEC.


Edgeless was the first online casino built on the Ethereum blockchain smart contracts. To play games there, you need to use EDG token based on ERC20 protocol.

The site guarantees players total transparency of transactions thanks to the random number generator, instant deposits and withdrawals, and compliance with all legal rules, as the casino has Curacao license.

Gambling experts will elaborate on blockchain casinos at Minsk iGaming Affiliate Conference.

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