Nick Hill, an iGaming consultant, and industry veteran participated in the latest episode of Hashing It Out show. The industry veteran revealed the results of new research by CoinGeek and spoke about the benefits that blockchain technology may bring to the iGaming industry.
Hashing It Out Episode 4 Is Now Out
Nick Hill, an iGaming consultant and industry veteran with more than 20 years of experience is the latest participant of Calvin Ayre’s Hashing It Out show. Last month, Becky Liggero Fontana spoke with TAAL’s CEO and executive chairman of nChain Group, Stefan Matthews who revealed the benefits of blockchain technology in episode 3 of the show. Matthews shared how Bitcoin SV (BSV) technology may be beneficial for both operators and regulators within the gaming industry.
As an industry expert, Hill’s collaboration with CoinGeek dates back to 2020. Now, in the latest episode of Hashing it Out, Hill discussed the results of a recent study by CoinGeek on “Blockchain for Gambling”. He revealed that 584 gambling industry professionals participated in the study. Many of the participants were CEOs and middle management employees in companies, mainly involved in the online gambling space.
Companies Are Yet to Implement BSV Technology
Hill revealed that 88% of the participants of the survey confirmed that they do not currently have an active blockchain project, besides the use of digital currencies. He explained that this result is no surprise, considering that there aren’t that many applications being developed using blockchain technology. Furthermore, Hill stressed that not many products are currently adapted to build on a chain for companies.
“I’m not surprised that people aren’t developing applications using blockchain technology at the moment because there aren’t any products out there that are built on chain for companies to adapt or integrate or work with.”
Additionally, another factor that may be stopping companies from using BSV is that this is still a new technology for them. He acknowledged that no company can suddenly swap their proven technology and start building on a blockchain, considering that this involves an entirely new strategy that is yet to prove its benefits.
38% Of Gambling Operators Accept Digital Currency
On the bright side, CoinGeek’s survey found that 38% of the participants accepted digital currency as a payment method. Although BTC was undoubtedly a leader and used by most of the responders, Ethereum ranked as the second digital currency used by the operators. On that topic, Hill explained that blockchain has two sides. The payment processing side is crypto, while the blockchain side is the one used for “utility applications”.
Furthermore, Hill explained that the survey participants who acknowledged that they use digital currency benefit from it by acquiring deposits, as well as new customers who are interested in such a payment method. With that in mind, he stressed that most casinos that support crypto depositing, do not pay back in cryptocurrency. Instead, according to him, “they’re acquiring then converting, using the exchange, converting into fiat and then the player is in the casino or the sportsbook wagering with casino currency or fiat currencies“. Last but not least, Hill revealed that some casinos focus entirely on crypto. Those online venues are aiming for different audiences and “targeting the more of the high roller,” he explained.
Blockchain May Bring Multiple Benefits for the Industry
Another key point that Hill addressed was the benefits of using blockchain technology. He stressed that legislation, compliance, and payment processing are some of the challenges which licensed operators are facing. An example that Hill gave is how the European regulated markets are being scrutinized and operators must comply with responsible gambling when it comes to advertising.
“Blockchain enables the operators to not only protect themselves and protect themselves from fines that they’ve been getting, but also to protect the player.”
According to him, with the help of blockchain technology, operators may protect themselves from unnecessary fines. Furthermore, at the same time, they can also protect the players and comply with the necessary regulations. Hill explained that this is achieved thanks to the “ability to store everything on chain“. Furthermore, he said that the data, stored on the chain, is timestamped and may be accessed at any time by the operator, or the regulator with the help of a key.