The implementation of blockchain technologies in the operations of online casinos has been an idea floating around since blockchain gained widespread popularity. Besides recording cryptocurrency transactions, blockchain can also store records of significant events such as financial transactions, contract agreements, document issuance, changes in personal or other data, and outcomes of events like sports matches or casino games. That’s why this topic is important. And that’s why we’re talking about how blockchain can enhance trust levels in online casinos.

Discover How Blockchain Enhances Transparency in Online Casinos Today!


Using blockchain not only to record cryptocurrency transactions (for what it was initially invented) is an additional useful application. You can record everything that needs to be registered and stored for an indefinitely long time (at least as long as the Internet and billions of connected computers exist):

  • Records of formal events in a person’s life and their personal data
  • Financial transactions
  • Contracts and their parameters
  • Changes in property rights, etc.

The practical application of blockchain can be in various areas of human activity, such as supply chain management, healthcare, voting systems, identity management, and finance. And, of course, online gaming venues.

In this article, we are considering the application of blockchain for gambling establishments with the aim of increasing transparency in their operations, which enhances people’s trust in them. Thanks to this, it’s possible to address issues (or significantly reduce their impact) regarding the fairness of gaming outcomes, trust in payments and their speed (towards the punter), prevention of fraud both from the venue and the punter’s side, compliance with gambling regulatory requirements, and increasing the level of transparency and accountability of gaming venues to regulatory authorities and the public.

Blockchain Basics

Blockchain is a technology invented in 2009 by an individual or group under the pseudonym Satoshi Nakamoto. Nakamoto created the first cryptocurrency, Bitcoin, for which they devised blockchain technology as a means of secure information storage.

In this technology, it is implied that computers connected to the Internet act as custodians and verifiers of information recorded in a chain of sequential events. Each link holds information about a specific event (e.g., a financial transaction) and can be confirmed by another participant in the blockchain. Additionally, each link is linked to the past and the future through hash data, serving as a digital fingerprint of each link to the preceding and subsequent links. This forms the links into a chain, specifically, a blockchain. The advantages of blockchain lie in the fact that the information of each link, once recorded in the blockchain, cannot be invisibly modified, deleted, or altered, as any such action would change its digital fingerprint, as well as the fingerprint of the link stored in adjacent links, making forgery easily detectable upon verification. This approach forms the foundation of the technology’s reliability.

In other words, you can’t have your cryptocurrency stolen from you (or have data removed from the blockchain) and claim that you never had it or it wasn’t yours — the blockchain stores all records of when this currency came to you, from whom, when it left you, and to whom. Moreover, storage occurs not in a single location, but in a decentralized manner, on other computers (network nodes), and there are from a few nodes to several million nodes, where the information can be stored simultaneously. Each node communicates directly with every other node, without a centralized control or oversight authority or intermediary institution. This guarantees the reliability of the technology and the records stored therein.

Transparency in Online Casinos

Transparency in online gaming venues is a significant and pressing issue. People have numerous questions about online gambling establishments for the following reasons:

  1. Lack of transparency in their activities, embedded in how they conduct their business. Almost every online gaming venue does not disclose information about ownership structure, end beneficiaries, all owners, their personal data, and accounting information about their operations on their websites. In many licensed gaming venues, such information is only available to a small number of regulatory bodies due to licensing necessities, but not to the public. Additionally, establishments do not show how their management systems function, what operations are conducted, how they are registered, and how the business management system is structured. All that is visible to the public is what is on the surface of websites, with which they directly interact (payments, games, gambling information, winnings, and various beautiful images on web pages). Such strong secrecy does not contribute to building trust in either direction, and it’s not surprising that it affects how people perceive the operation of gambling establishments and the games available on their websites.
    1. Centralized control of gaming venue owners over everything that happens in them. Even if there are reports from supervisory and licensing organizations, who knows right away where to find and access them for each gaming venue on the Internet? And who knows to what extent and depth these organizations check the gaming venue and its operations? Can these organizations be trusted in the first place? This creates the risk of manipulation of game outcomes and associated winnings (and losses). Essentially, this is a logical extension of the previous point on the list about secrecy, where clients project the closed nature of establishments onto the likelihood of manipulation of everything that happens there.
    1. Concerns about the security of their data. When a client provides their personal and financial data to the gaming venue, where is the guarantee that it will not be sold or compromised?

All these issues can be fully or partially addressed by implementing blockchain in the operation of gaming venues. Thus, blockchain allows the following:

  1. Have transparent and verifiable algorithms that are the basis of games and record all their outcomes.
    1. Gaming venues will not be able to withhold a punter’s winnings if “smart contracts” are implemented — self-executing contracts guaranteeing the payout of funds upon the occurrence of a specific event (such as winning). As a result, the influence of wagering requirements can be abolished or significantly reduced. At the very least, unfounded wagering requirements and other demands may disappear. And when a punter wins a certain amount, it will be credited to their account regardless of the gaming venue’s wish or reluctance. This ensures 100% fairness of payouts.
    1. Implementing decentralized management and independent supervision of gaming venues can be an excellent alternative to various official supervisory structures that may be corrupt or, for other reasons, fail to do their job properly.
    1. Punters who provide their personal and financial data to the gaming venue can grant access to the blockchain, where their information is stored, only to the specific gaming venue, while no one else will have access to it without separate permission (implementation is available through, for example, blockchain networks with restricted access or offline storage of the data themselves while storing only information about the existence of the data on the blockchain).
    1. Implementing storage of game outcomes, including RNG results, in the blockchain.
Read this informational article to discover for yourself blockchain in technology

Benefits of Blockchain for Transparency

Blockchain can ensure absolute fairness in every game integrated with it. That means, when the RNG of specific games is linked to the blockchain, every time a random number is generated determining the win or loss in a game, it will be digitized, recorded, and transmitted to be stored in the blockchain, so it can always be retrieved, viewed, and analyzed for its fairness and impartiality.

Of course, to do this, game developers themselves need to integrate them with blockchain technology or create new versions of games if current mechanisms of their technological implementation do not allow such integration. Currently, there are relatively few such developers, and they are mostly unknown to the general public (eJaw Casino Game Development Company, MetaDiac, and Bitdeal). Among major companies, such developers have not yet been found. And yet, this is a significant moment that could greatly influence the loyalty of punters who would embrace the full fairness of the gaming club.

The same applies to financial transactions. Blockchain ensures payouts of winnings within minutes, not hours, days, weeks, or months, as gaming venues currently prefer, claiming that they need to conduct some “checks” before paying money out. Let’s be honest with each other: if a punter makes a deposit to the gaming parlor, which takes, like, 0.5 seconds to complete, then the payout of winnings should be just as fast. What is there to check? RNG worked, gave a result, the game showed a win — the won money was calculated and should be ready for payout to the punter on the spot, right? If the RNG is on the gaming venue’s side and blockchain is on the gaming venue’s side, then the verification of the fairness of the gambling outcome should be automated, not manual. So, the punter should be paid instantly.

Unfortunately, the market in many business sectors is not currently ready for fair and honest payments in both directions, because everyone wants only to receive money, but no one wants to give it back. Examples of these sectors, besides gaming venues, include insurance companies, subscription services, online marketplaces, platforms for hiring people and independent contractors, investment programs, and banks. There are also many individual companies (working in various industries) willing to litigate for years instead of refunding a person’s payment for a poor-quality product. And this is not to mention blatantly fraudulent schemes that are designed to work only in one direction. With technologies blockchain, all transactions made in both directions can be honest, verifiable, and fast.

As for increasing security levels and reducing fraud risks, applying blockchain can also help here. Blockchain stores immutable transaction records, enables transparent and auditable smart contracts, and enhances identity verification and KYC processes. As we have already mentioned, transactions once recorded in the blockchain cannot be deleted or modified without traces in the system and affecting all other links in the chain. Therefore, no one can tell you that you didn’t deposit money into this gaming venue or that you deposited less than you say. They also won’t say that you didn’t actually win, and the gaming venue doesn’t owe you anything. They won’t say that you didn’t meet the wagering requirements or didn’t play the right games. And certainly, they won’t say that you didn’t provide your data for identity verification or didn’t register at the gaming venue in the first place.

Unlock the Future of Online Casino Transparency with Blockchain!

Use Cases of Blockchain in Online Casinos

Let’s consider the most illustrative use case of blockchain, namely smart contracts.

First, we need to understand what a smart contract is. This will be especially useful if you know nothing about blockchain or are just beginning your acquaintance with it.

A smart contract is a computer program — a piece of code — existing in the blockchain system. Its nature is the same as a legal contract concluded between parties, specifying the terms, obligations, and responsibilities of the parties. Its execution is brought into force not by people or organizations, but at the level of blockchain machine code, upon the occurrence of certain conditions.

For example, let’s look at a gambling game executed on the blockchain using smart contracts. When a punter deposits funds into their account in a casino and starts placing bets in this game, the conditions of the smart contract are quite simple: in case of a win, the winnings are calculated for this punter, which are automatically transferred from the gaming venue’s account to their account. Both accounts are also located on the blockchain and can be either cryptocurrency or other financial payment means. For example, electronic currency.

When a punter loses a bet, the amount of the loss is transferred by the same smart contract from their account to the gaming venue’s account.

All this happens automatically, quickly, without human involvement in the calculation process, which eliminates both the risk of human error and the risk of fraud by the punter and the gaming venue. The execution of smart contracts cannot be stopped, violated, or controlled otherwise than provided for in their code, which cannot be forged, as they are located on the blockchain.

In this case, the gaming venue loses some control over the movement of finances. And there is a risk that if punters win more than the funds available in the gaming venue accounts, there will be a liquidity gap, making the execution of smart contracts impossible. This risk must be controlled by the gaming venue separately and promptly addressed both at the liquidity monitoring level and at the level of the logic of smart contracts. For such cases, smart contracts must contain extra explanations on how to execute the contract. For example, casino employees responsible for liquidity monitoring should be notified of winnings exceeding a certain amount, so they can ensure there is a balance to execute the smart contract without hampering.

If the gaming venue uses neither blockchain nor crypto for financial calculations with its punters, smart contracts can still be utilized. They record information about wins and losses, and when a punter wants to withdraw their winnings from the gaming venue, smart contracts will transfer the accumulated information to the gaming venue’s calculation system, and based on minimum and maximum withdrawal limits, a transaction will be executed without involving blockchain, but initiated and pre-verified with its help.

Additionally, when gaming venue games use blockchain, it becomes possible not only to execute smart contracts with full automation of payments in both directions but also to have absolute trust in the games, the RNG of which is also on the blockchain or transmits results to it. This way, all game outcomes can be accounted for and audited in the future.

Make use of technologies blockchain in your online casino or betting club

Implementing Blockchain in Online Casinos

Integrating blockchain into gaming venue systems is more of a technical than an administrative task. To accomplish this process, it’s important to hire a technically proficient team capable of implementing blockchain at the software level. The technical implementation will largely depend on the type of gaming venue platform used and all its components (front office, back office, reporting, monitoring, KYC, AML, risk management, AI, and others). If the system used by the gaming venue is provided as White Label or SaaS (meaning it’s not controlled by the gaming venue at the software level), then the integration of blockchain into it is entrusted to the vendor of that system.

To implement blockchain, the first step is to choose a suitable blockchain platform. Popular options include Ethereum, EOS, and TRON. One has to consider various factors to choose it, such as scalability, transaction speed, and developer support.

It’s necessary to decide to what extent blockchain will be integrated into the system. That is, whether it will only be in part of the system’s transactions or in all of them:

  • Punters’ bets in games
    • RNG of games and storing information about all outcomes
    • Smart contracts for transactions in crypto and other payment methods
    • Actions of punters not related to bets: registration, provision of personal and financial data, passing AML and KYC procedures, and other
    • Changes implemented by the gaming venue itself, such as in the list of available games or in the Terms. And so on.

The fuller the implementation of blockchain into all gaming venue systems, the more transparent they become, the more susceptible to external and internal audits, the more trust punters will have in this establishment, and the less influence the human factor will have. However, along with this, there are risks of compromising data located on a public blockchain. Therefore, for certain stored information, it will be necessary to choose a type of blockchain system that allows access only to authorized users. For example, punters’ personal and financial information, scanned copies of documentation, or things that constitute a commercial secret.

Case Studies

Despite the fact that integrating blockchain to enhance transparency in houses of gambling is a relatively new thing, there are already examples of such technology of blockchain implementations in the world.

Here’s a list of them:

  • BitStarz (
  • Cloudbet (
  • mBit (
  • Stake (
  • Fairspin (
  • FortuneJack (
  • Bitsler (
  • Cryptogames (
  • Edgeless (
  • Wink (

Thanks to the implementation of blockchain technology, these venues can now offer provably fair gaming, transparent operations, improved security, and faster transactions.

Apart from specific gaming venues, similar blockchain in technology approaches have also been adopted by companies producing gaming or other solutions for the gambling industry like TruePlay ( and Comfygen ( Thus, these companies provide their clients with solutions for transparency and security now based on blockchain, eliminating the need for clients to ponder over complex technology integrations on their own.

Challenges and Future Outlook

The path to integrating blockchain into online gaming venues comes with various challenges. Here’s the rundown:

  1. Market reluctance to acknowledge the necessity of change. Many market operators (casinos and game developers) are comfortable with the status quo and see no real need for change. Sure, it could potentially boost punter trust, but that’s not a guarantee, and forecasts on its qualitative impact on the gambling business are either absent or quite fuzzy.
  2. Simply connecting blockchain to gaming venue systems doesn’t guarantee an increase in their transparency and fairness. Gaming venues could implement blockchain in a way that only feeds it information beneficial to them while concealing the rest. Public or regulatory quality control of blockchain implementation could help in this regard. However, blockchain regulations are still scarce globally, and understanding the control of such implementations is limited. Moreover, not all jurisdictions where gaming venues operate have requirements for gaming venue control at all levels, especially public control, meaning gaming venues are only answerable to government bodies upon request.
  3. Legal and regulatory frameworks regarding blockchain are virtually undefined worldwide, let alone how blockchain should be integrated into the operations of commercial companies and organizations. This all exists today at the level of individual companies that have implemented it and in their internal normative and technical documentation, which doesn’t have official status.
  4. Scalability issues with blockchain networks may result in delayed operations, requiring more computational power as the number of users increases, and increasing transaction fees, which all diminish interest in their services. This is very relevant in online gaming venues, where the number of games played by punters in a short period of time can amount to thousands (or even millions in large establishments), significantly increasing the load on infrastructure, communication channels, and bandwidth.
  5. Failures of connection between gaming venue systems and blockchain will lead to the impossibility of carrying out operations, resulting in user dissatisfaction.
  6. High complexity of technical integration.
  7. Significant investments are required from all professional market participants.
  8. Security issues. Blockchain technology isn’t immune to security vulnerabilities and targeted attacks. The issue of returning cryptocurrencies after theft from wallets operating on the blockchain hasn’t been resolved either.

Yes, the blockchain system has its challenges, some quite serious. However, the opportunities it presents are enthralling:

  1. Immutable records in the information chain, guaranteeing protection against unauthorized interference with their integrity.
  2. Decentralization of networks allows for swift operations and the absence of a single controlling authority or intermediaries.
  3. Automation of processes and smart contracts.
  4. Cryptographic protection of stored information.
  5. Transparency of operations and the ability to conduct impartial external audits.
  6. Traceability of registered transactions.
If you are interested to know more about blockchain in technology, read this article


Overall, implementing blockchain will significantly enhance the transparency of online gaming venues and lead to an increase in the number of punters and demand for games. As more professional punters start to implement blockchain into their operations, others will follow suit when they see the competitive advantages of that. Adopting blockchain will lead to a more trustworthy and efficient online gaming environment, effectively resolving the issue of punters questioning online gambling establishments about rigged games, long payout terms, non-payments, and hard-to-follow systems of playthrough.

The implementation of blockchain technologies in the operations of online casinos has been an idea floating around since blockchain gained widespread popularity. Besides recording cryptocurrency transactions, blockchain can also store records of significant events such as financial transactions, contract agreements, document issuance, changes in personal or other data, and outcomes of events like sports matches or casino games. That’s why this topic is important. And that’s why we’re talking about how blockchain can enhance trust levels in online casinos.

Explore Blockchain’s Impact on Online Casino Security and Trust!

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