Hold on to your crypto hats, folks, because this party is about to get regulated! Spinning wheels and lucky sevens, anonymous transactions basically, all that has gone into making the crypto casino industry a booming one. It now draws regulators’ attention worldwide. Though many of you may view this as a killjoy, it’s centrally relevant to understand the potential impact and why this is happening in the first place.

Imagine this: you are on a hot streak at your favorite crypto roulette table, one lucky spin after another. Suddenly, a message appears: “Error: Transactions exceeding X amount require KYC verification.” Talk about a mood killer! Before you hurry to buy a pack of tinfoil hats, let’s look into the reasons behind this potential regulatory crackdown.

The Dark Side of the Crypto Coin

It’s a Catch-22 situation: while anonymity gives room for discreet transactions, it is also an expressway to all sorts of wrongdoing. This poses a great concern for regulators seeking to keep the online gambling space clean.

Now, across the Atlantic, France’s gambling watchdog raised red flags against two rather popular crypto casino platforms in 2021: cbet.gg and stake.com. What was their crime? Allowing transactions with those oh-so-convenient crypto coins. The French authorities said it runs against AML (anti-money laundering) regulations. Similarly, while Spain fails to regulate means of gambling payments as such, it has precisely forbidden crypto as a valid means.

The Great Crypto Gambling License Fiasco

You might be wondering at this point, “But wait, they have licenses!” And that is where it gets thick. Many crypto casinos proudly display their licenses, but then a closer look at things reveals a spidery web of regulatory loopholes.

Curaçao—fast, cheap, and hence a go-to choice for most crypto gambling sites. Sounds good? Not quite. Critics argue this license is essentially a “participation trophy.”  The Curaçao regulatory body doesn’t exactly hold licensees by the hand. They rarely conduct audits or enforce regulations, leaving operators to pretty much do their own thing.

Malta used to be the star child of crypto gambling licenses, boasting appealing tax breaks and access to European markets. However, recent scandals have Malta somewhat tarnished. Allegations of lax AML procedures and possible ties to organized crime cast a dark shadow over what once was the prestigious Maltese license.

Then there is the case of Costa Rica. And wait, there is no gambling license here! Many times, what is shown is a glorified registration of the company, costing around $10,000. This means that they have an “office” in the country, but there is no regulatory body that will hold them accountable. It’s a casino operator’s dream, or nightmare (depending on how one views it).

The Four Horsemen of Crypto-powered Shenanigans

Now, how exactly are cryptocurrencies being used for nefarious activity in online gambling? The grim report from the Asian Racing Federation (ARF) has outlined four key areas about it:

• Goodbye Fiat: Cryptocurrencies are making for an alternative to traditional means and methods of payments; in effect, this makes it difficult for authorities to track transactions and identify suspicious activity.
• Blockchain Bonanza: Some gambling apps are based on blockchain technology, thereby further obscuring the transactions and creating a whole new layer of complexity for regulators.
• Agent Provocateur: Crypto facilitates the transfer of funds to betting agents outside the regulator’s framework. This allows them to bypass AML and consumer protection measures.
• Wash, Rinse, Repeat: It’s no wonder that anonymity in cryptocurrency makes it tailor-made for laundering profits from illegal gambling operations. Money can be rushed around quickly and is anonymous, making it next to impossible for any authority to track money flows.

The Potential Impact of Increased Regulatory Scrutiny

What does this regulatory crackdown mean for the future of crypto casinos? Well, let’s break it down.

The Good, the Bad, and the Ugly

On one hand, increased regulation might boost player trust and confidence. Knowing that your darling crypto casino runs within a tight framework of laws and regulations tends to build trust. This gives the players a feeling of security and fairness and will, therefore, help attract more players into the fold. Further, it will weed out rogue operators who are more interested in lining their pockets than in providing a safe environment to play in.

The road to regulation, however, remains bumpy. Tighter regulations augment the cost of compliance for operators. With their price hikes, this can be transferred to players in higher fees, or worse, some casinos may opt to fold up and leave the market altogether.

Furthermore, by their very nature, cryptocurrencies are anonymous. If regulations require casinos to obtain more personal identifying information from their players, some players might be turned off by that loss of privacy. This can direct players to unregulated platforms where risks are higher.

The Future is a Gamble

At one end is the future of crypto casinos, while at another corner are innovative operators battling it out with watchful regulators in a game of cat and mouse. As the industry matures, we could witness the wedding of benefits accruable from blockchain technology with those safeguards ushered in by traditional regulation in a hybrid model.

For players, doing your homework is critical. Look for a casino that has won some reputable licenses and has a reputation for fair play. Remember not to take any risk, however irresistible, on an unregulated platform. At the end of the day, it’s not worth the risk. There are enough good crypto casinos to choose from.

Conclusion

The key to survival lies in adaptation, and the industry itself will survive if crypto casinos can effectively navigate a regulatory turf while maintaining their innovative edge. It’s high time the industry rolled up its sleeves to show it can be responsible and trustworthy in the global gaming market.

Although it is a gamble, careful planning, and responsible practices might just be what crypto casinos need to make it big in the future.

Popular iGaming content provider BGaming has transformed the classic Hold and Win Bonus game with its engaging TRUEWAYS mechanic in the latest title, Fortuna TRUEWAYS. On top of this, the magical release includes the Wheel of Fortune, Fortuna SpinUp™, and Fortuna Favors the Brave features, as well as Wilds, Mystery symbols, a Coin Respin round and an accessible Prize.

Players must reach the summit of Mount Olympus to witness the all-powerful goddess Fortuna spin her Wheel of Fortune, with a maximum win of €250,000 up for grabs. As the embodiment of luck, Fortuna can divide one symbol into 1/8 via the Wheel of Fortune feature, enhancing winning combination payouts in both the main and Bonus games.

A flexible dynamic Prize increases anticipation and delivers ample rewards to players who fill all the cells on the Bonus reels with Coins. The Prize adapts to the number of cells in the Bonus round, starting at x30 of the stake for 12 cells and ending at x5,000 for 48. Players can refer to the rules for the complete Prize table.

The Fortuna Favors the Brave feature can be triggered if there is a winning combination. An animated Expanded Wild featuring the goddess Fortuna may appear on reels 3 and 4 and break up into 1/8 Wilds. The smaller Wilds then assume the role of multipliers when Fortuna SpinUp™ is active.

The all-new Fortuna SpinUp™ can be purchased for x4 of the bet amount. This button sees the player receiving more Mystery, Coin and Wild symbols, with each Wild offering a multiplier between x2 and x8, and The Wheel of Fortune appearing more frequently. The Mystery symbol has the power to randomly transform into one of Fortuna TRUEWAYS’ paytable icons.

Adding further excitement to the classic Hold and Win Coin Respin round, Collect assumes all the values of the Coins present on the screen, while Boost adds its own value to the figures on screen, except for other Boosts. At the end of this round, all Coin values are summarised and the total amount is paid to the player.

Yulia Aliakseyeva, Co-CPO at BGaming, said: “We are delighted to inject Fortuna TRUEWAYS with so many engaging additions, such as our progressive Prize mechanic and our lucky character’s themed features. Our TRUEWAYS series continues to be a hit and switches up the traditional slot game format, offering more unexpected surprises for players on an ever-shifting field.”

Kevin Furlong has been appointed EveryMatrix Group Chief Product Officer (CPO) with responsibility for product strategy across all the tier one supplier’s multiple business units. 

Furlong will lead all the Group’s product design, delivery and output, co-ordinating with EveryMatrix business unit CPOs to ensure the best possible results for its 300+ global customers and partners. 

With 20 years’ industry experience including senior roles at Entain, GVC, Bwin and Paddy Power, Furlong will work across all EveryMatrix’s modular casino, sports, platform, affiliate and payments products including CasinoEngine, OddsMatrix, GamMatrix, PartnerMatrix and MoneyMatrix. 

He will report to Group CEO and co-founder Ebbe Groes and brings with him a proven record of success in product development, online business management and large-scale technology mergers. 

Ebbe Groes, Group CEO and Co-Founder, EveryMatrix, said: “EveryMatrix aims to service the largest and most discerning operators on the planet. More than two-thirds of our revenue is generated from tier 1 operators today. To do this successfully we must constantly improve the talent inside the company. 

“Kevin has outstanding industry experience working with some of the largest operators so we’re naturally delighted to have someone of his calibre join us as we continue to accelerate our growth. 

“Kevin will be instrumental in developing an even better experience for all our customers.” 

Kevin Furlong, Group CPO, EveryMatrix, said: “I’m delighted to join the EveryMatrix management team and focus my attention on some of the best products in the industry today. The business is on a rapid growth curve and we have some ambitious but achievable plans to come which I’m excited to be part of. 

“My role is to bring all our products together to give our customers and their players the best possible experience. We already do this in so many ways, but we know we can do so much more with the proprietary technology, knowledge and expertise we have at our disposal within the Group.”