Why should entrepreneurs know what a blockchain casino is? Blockchain technology is rapidly transforming various industries, and online gambling is certainly no exception. With its decentralized nature, enhanced security features, transparent operations, and ability to facilitate frictionless, near-instant transactions, blockchain is offering a multitude of advantages that are revolutionizing the way online casinos operate.

In this article, Casinnovate will provide a comprehensive overview of the fundamental features and mechanisms of blockchain technology to establish a clear understanding of its essence and how it’s influencing the iGaming industry. Let’s get started!

What is a Blockchain Casino?

TCS - What is a blockchain casino

One of the biggest challenges faced by online casino operators is building trust with their players.

Analyzing the definition of blockchain casinos, it becomes evident that this challenge is addressed by this sophisticated platform: a blockchain casino is an online gambling platform backed by Distributed Ledger Technology (DLT). This technology enables the platform to manage all iGaming system operations, ensuring transactions are transparent, secure, and fair.

From a user perspective, blockchain technology reduces the time needed for financial transactions, improves privacy, and provides a public, immutable record of transactions on the ledger.

This focus on transparency and security fosters trust with users, precisely because trust is not explicitly needed. Since users provide sensitive information during registration and make monetary deposits, it’s fundamental to convince them that the platform is secure and protects their interests. Players also need to trust that the games they wager on are fair and unbiased. However, when all data is public and securely encrypted, conventional levels of trust are redundant.

Blockchain technology addresses both privacy and security concerns, making online gambling more transparent and secure than ever before. How this technology manages to address these concerns will be covered later on. At this point, it’s important to note that the transparent nature of blockchain technology guarantees games are not manipulated. Players can independently verify the fairness of each gaming round, putting their doubts to rest. Another trust-building aspect of blockchain casinos is cryptocurrency use.

Cryptocurrencies for Transactions

As most transactions in these casinos occur in crypto, operators need innovative solutions to ensure protection against theft and prevent attacks. Features such as thorough data encryption, secure wallets, and provably fair gaming algorithms really help to reduce player worries. The most widely adopted cryptocurrencies in the gambling market are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). However, with the growing popularity of digital currencies, several other altcoins are also being used. Some casinos even present special offers for gamblers using their proprietary coins.

It’s no secret that blockchain technology has the potential to disrupt industries worldwide, and online gambling is no exception. Compared to traditional online casinos, blockchain casinos offer a range of unique benefits that attract both players and operators. Enhanced security, instant payments, lower costs, and complete autonomy are just a few perks making blockchain-based gambling establishments more attractive than other online gambling options.

The Technology Behind Blockchain Casinos

TCS - The technology behind blockchain casinos

Blockchain casinos work thanks to the unique technology they’re based on.

When discussing these types of platforms, we’re not talking about Bitcoin or othe crypto casinos that only accept cryptocurrencies as a payment method. Instead, we’re focusing on a type of iGaming platform that manages operations using advanced technology.

How Blockchain Casinos Work in the Backend – Step-by-Step

  • When a user accesses a blockchain casino, the technology creates new accounts linked to specific keys to be used as credentials, rather than using the user’s personal information.
  • Your private key is what you need to demonstrate your account’s ownership, and it must be kept private and secure. The public address associated with you is what you need to deposit funds. You can send funds from your crypto wallet to your public casino address, always ensuring to use the correct blockchain network.
  • When it comes to gaming, fairness and randomness are achieved thanks to smart contracts, which can be publicly reviewed. While understanding a contract may require substantial technical knowledge, it serves as proof that the games offered by the platform are random and fair.
  • Smart contracts also play a pivotal role when placing bets. Operating according to preset rules, which must be followed to finalize any operations, the smart contract records a bet on the blockchain. Once the bet is stored, a random number is generated to determine the bet’s outcome, and the contract handles the payout if there’s any. Again, this process is independently verifiable.
  • If your bet is successful, after the smart contract processes the payout, you can then transfer your crypto funds to your personal crypto wallet.

Pros and Cons of Blockchain for Casino Businesses

As shown in the table below, there are many reasons to consider a blockchain-based casino when it comes to iGaming businesses: the market is constantly growing, capable of addressing the most common and urgent issues faced by players, while improving transaction speed and limiting the need for trust.

Despite this, like any other type of business or platform, there are both advantages and disadvantages every entrepreneur needs to take into account in order to make an informed choice.

Table – Blockchain Casinos: iGaming & Blockchain Games Market Data

Casinnovate Table – Market data on blockchain gaming
Global Casinos Market Value (2022)US$157.5 billion
Projected Global Casinos Market Value (2030)US$224.1 billion
CAGR (2022-2030)4.5%
Gambling Machines CAGR (2022-2030)4.9%
Gambling Machines Projected Value (2030)US$108.4 billion
U.S. Casinos Market Value (2022)US$72 billion
Asia-Pacific Casinos Market Value (2030)US$84.8 billion
Asia-Pacific Casinos CAGR (2022-2030)5.2%
Blockchain Gaming Market TrendShift from traditional games to blockchain-based games
Dominant Game Type (2022)Role-playing games
Most Used Platform for Blockchain GamesEthereum (ETH)
Emerging Platform for Blockchain GamesBNB Chain (due to lesser transaction fees)

Source: MarketsAndMarkets

Advantages of Blockchain Casinos for Businesses


  • Immutability and Tamper-evidence: the public, distributed, and usually decentralized ledger forming the backbone of the blockchain is immutable. Its structure makes it impossible to alter any part without modifying the entire blockchain.
  • Security: the robust and tamper-evident structure of the blockchain improves security.
  • Encryption and Anonymity: the process that makes it possible for the blockchain to work correctly uses high levels of encryption. The very concept of the blockchain relies on cryptographic techniques. All this makes it possible for the user to be represented by a string of letters and numbers, so to not reveal any personal information. At the same time, all data is kept secure.


  • Fairness and Transparency: as mentioned, blockchain casinos tend to use provably fair mechanisms, which allow players to independently verify the fairness of game results. This transparency helps to build trust with users, showing them that the casino has no control over the outcome of their bets.

Payments and Accessibility

  • Faster payments: even if some blockchain networks might be so congested that a faster payout might require higher fees, blockchain technology and the most recent improvements brought by altcoins tend to allow near-instantaneous payments.
  • Global accessibility: blockchain is a global technology. Moreover, when a blockchain network is decentralized, there are no geographical boundaries.
  • Lower costs: while there may be some initial development and operational costs associated with running a blockchain casino, the use of this technology can actually be more cost-effective in the long run.
  • Increased user control: blockchain-based casinos, when decentralized, allow users to retain full control over their funds by leveraging smart contracts.

By taking advantage of the unique features offered by blockchain technology, online casino operators can position themselves for long-term success. Beyond the benefits listed here, we can anticipate further developments in the industry – such as virtual reality (VR) and social experiences – influencing the adoption of decentralized solutions in the iGaming industry.

Disadvantages of Blockchain Casinos for Businesses

  • Regulatory hurdles: the decentralized and pseudonymous nature of many blockchain networks often attracts the attention of regulatory bodies, and this can become a challenge for casino operators who want to offer their platforms in certain jusrisdictions.
  • User-Friendliness: even if the user experience (UX) of many blockchain casinos has improved in recent years, it can still be more complex for players when compared to traditional online casino platforms. For instance, users must often take additional steps to secure their wallets and backup private keys.
  • Volatility of cryptoassets: the use of cryptocurrencies in blockchain casinos can be both an advantage and a disadvantage. While it allows for the global transfer of funds without third-party involvement, the volatility of many cryptoassets can be a concern for players.
  • Limited game variety: even if the range of games offered by blockchain casinos is expanding, it still does not compare to the vast selection available at many traditional online casinos.
  • Network scalability: while network scalability solutions for certain blockchains (like Lightning Network for Bitcoin and “Ethereum 2.0”) are developed to help improve the number of transactions processed per second and mitigate high fees during peak usage, casino operators should still be mindful of potential network scalability challenges.

Integrating Blockchain into Existing Casino Platforms

Integrating blockchain technology into existing casino platforms can be a complex operation, but it also represents an opportunity for iGaming entrepreneurs who want to find alternative solutions and enhance their offerings.

If you already own an online casino and are looking to explore how to integrate a blockchain platform, here is a step-by-step guide:

Defining Goals

  • The first step is defining your goals. You might want to integrate a fully functional blockchain-based platform, or perhaps you wish to enhance only certain aspects, like security.

Choosing a Network

  • Once you have defined the use cases, you can proceed by choosing a blockchain network that will serve as the backbone of your integrated platform. When choosing a network, you should evaluate aspects like transaction costs and speed.

Smart Contracts

  • The third step is the most complex and important one. In this phase, you should focus on smart contract development. Always rely on professionals who are able to design a robust structure. These contracts will need additional auditing, a common practice in smart contract development. Since smart contracts will require almost zero human intervention after they’re coded, it is crucial to ensure that they work properly and that there are no vulnerabilities that could be exploited by external attackers.

Backend Integration

  • Now, you can proceed with backend integration. To integrate a blockchain-based platform with your existing casino, you might want to use application programming interfaces (APIs) or middleware solutions, depending on the level of complexity of the operations you want to handle using blockchain technology. While APIs can facilitate communication between your existing casino backend and your smart contracts, middleware solutions can act as a buffer between the two systems to handle more complex operations—like handling failed transactions. You might also need to add event listeners to your backend to monitor and react to events triggered via smart contracts.
  • Another step involves the synchronization of data. Your internal and existing database should be synchronized with the data on the blockchain to guarantee a consistent user experience.


  • Once the backend is integrated, you can start focusing on the frontend. You’ll need a user-friendly interface that can communicate with the blockchain, allowing users to trigger all the necessary events coded into the smart contracts, as well as facilitating user authentication and crypto wallet integration.
  • After completing this step, you can start testing your new system before the launch. You might also consider a beta launch to collect feedback from different users before the official launch.

Once the integration is complete, it is important to monitor the functioning of your integrated blockchain-based system, and update smart contracts when needed.

Regulatory Landscape and Compliance

TCS - Blockchain casinos and regulatory compliance

Certain countries have established themselves as more crypto-friendly, providing a more thriving environment for blockchain and cryptocurrency businesses. For instance, Malta, known as the “Blockchain Island,” has implemented comprehensive legislation to regulate digital assets and blockchain technology, making it an attractive destination for crypto businesses. On the other hand, countries like China and Kuwait have taken a more severe stance against cryptocurrencies.

This type of information is pivotal for iGaming entrepreneurs who want to explore blockchain solutions: having an in-depth understanding of legal requirements will let you know where you can operate safely, without any unexpected issues, or if you want to opt for full decentralization or adopt more centralized and compliant solutions.

Regulations: A Challenging Point

This aspect is particularly challenging if you consider that many jurisdictions are still in the nascent stages of formulating specific regulations for blockchain technology and cryptocurrencies. Proactive engagement with regulatory bodies is crucial, as is staying informed about emerging legislation.

Especially when you plan to involve stakeholders and target a larger audience who feels more comfortable with traditional iGaming infrastructures and security measures, implementing robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols is non-negotiable. A meticulous and thoughtful approach to compliance is indispensable, since you should make sure to conduct operations within the legal boundaries, thereby laying a solid foundation for success in the competitive B2B market.

By placing a premium on regulatory compliance, businesses can confidently navigate this complex environment, safeguarding their operations and ensuring long-term viability and success in the blockchain casino domain. But, as mentioned, blockchain-based solutions can fit different approaches: it’s up to business owners to choose the best solutions according to their needs and goals.

Future Trends: Where is the Blockchain Casino Market Going?

The future of the blockchain casino market opens countless possibilities for businesses.

One major trend is the increased adoption of blockchain technology by traditional online casinos, driven by the growing demand for transparency, fairness, and security. This integration will result in a seamless mix of blockchain and traditional iGaming platforms, offering players the benefits of blockchain while maintaining familiar gameplay experiences.

Additionally, decentralized finance (DeFi) and non-fungible tokens (NFTs) will further revolutionize the blockchain casino market. DeFi protocols will enable enhanced liquidity and new financial models within the iGaming industry, while NFTs will unlock unique and tradable in-game assets, improving player engagement and monetization opportunities.

Cross-chain interoperability will also play a pivotal role, allowing for seamless integration across different blockchain networks. As the market continues to grow, regulatory frameworks surrounding blockchain casinos will become more refined, providing increased clarity and stability. With these exciting advancements on the horizon, businesses must be flexible and embrace innovation.

If you want to have a clear roadmap for your iGaming platform, use Casinnovate’s free business plan!


What is a blockchain casino?

A blockchain casino leverages distributed ledger technology (DLT) to manage all the operations related to an iGaming business.

What are the main advantages of blockchain casinos?

Transparency and security are the main advantages of a blockchain casino.

What are the main disadvantages of blockchain casinos?

Regulatory frameworks and the volatility of crypto assets are the main disadvantages of blockchain casinos.