The Blockchain Gambling Impact – Professional Opinions – Part 3
Let’s continue to talk about the way the online gambling industry is applying blockchain to their business and the changes that will or are happening in the way we gamble online, but also in the way regulators and operators manage the industry. Let’s go over some more testimonies from professionals from this area.
David Mann, Wazdan
Wazdan is a game development company and David Mann is their Business Development Manager. When David was asked about blockchain gambling projects he mentioned, like all the industry professionals, that the impact will be elevated, when applied correctly. A correct application of the blockchain will transmit confidence to the players in terms of security and fairness, features enabled by the blockchain.
To complete this transparency scenario also operators and regulators will be happy with the advantages for their areas, but for this to happen adequate legislation has to be developed for the technology to be implemented correctly.
Joakim Renman, Scout Gaming Group
The Scout Gaming Group is a B2B fantasy sports and pool betting provider. Joakim Renman is their commercial director, and his experience B2B casino and betting, and in B2C poker leads him to say that blockchain as a freedom project will end up highly regulated by governments.
He sees the blockchain as a way for the authorities to monitor gambling transactions more than a currency, and he even foresees governments creating a national gambling token to allow real-time control of gambling activity and their balances.
Gambling is fun but register processes and supplying a ton of information to the online casinos is everything but fun. On the other hand, to gamble on blockchain casinos an address to transfer the money is all it takes, and creating this address is as simple as to hit a button that says “Generate address”.
This address is not associated with any personal information or bank account and we are the only ones controlling our funds. More, the transactions are not tracked, so financial stability is not a factor, and neither are taxes.
Surely that regulation is being prepared, but when that happens the market will be fully up and running, so while that happens players can get their blockchain gambling profits tax free.
Kate Lowenhar-Fisher, attorney at Dickinson Wright
Not everyone sees the topic like this though. Kate Fisher, specialist in iGaming and Betting sees the blockchain almost anonymity question as challenging, especially for the mainstream adoption of companies that operate in the legal space and have to comply with KYC, bank secrecy and other local requirements.
Being a licensed gambling operator requires knowledge from where the bets are coming from and the legitimacy of the funds, something impossible to be achieved with cryptocurrencies, and therefore leaving the current regulated online gambling companies out of the crypto space.
Lau Kok Keng, attorney at Raian & Tann Singapore
Lau Keng, specialist in Intellectual Property, Sports and Gaming also shares this perspective. He does acknowledge the transparency brought by the blockchain on transactions and payment processes, but the volatility of cryptocurrencies and the fast change in their valuation is a risk for the operators.
Again, the simplicity of cryptocurrencies wallets doesn’t allow gambling operators to comply with their legal obligations, namely in terms of KYC verifications. There’s still a long path to go before blockchain gambling becomes mainstream, but for now the main difficulty is not technical development, but legal barriers.