Both online gambling sites and houseless blockchain-based casinos use the internet. Outside of that, there are some key differences between the two. Exploring these differences here will expose why Bitcoin and gambling seem to go hand-in-hand, and why Bitcoin’s underlying technology, the blockchain, might change the game for gamblers forever.
Since online gambling first exploded in the 1990s alongside the dot-com boom, players have been looking to beat the house in much the same way they do at the brick-and-mortar behemoths that pump rooms with oxygen, drown ear canals with bells and whistles and blind the eyes of gamblers to their losses with flashing lights. But as much as the medium for gambling has moved from real green felt covered tables can touch to computer screens featuring loud, colorful interfaces that mimic a real-life casino, the concept that a casino only makes money keeping a house edge and having players lose is alive and well.
The blockchain offers the opportunity to change all that.
All Casinos Need to Profit
As mentioned above, an online gambling site is in the business of making money off of the misfortunes of players. There always has to be a house edge, a way to easily profit.
Without the edge, a casino can’t keep its doors open, even though moving from a brick-and-mortar model to an online casino dramatically reduces costs in obvious ways. Online casinos have found a way to lesson their edge compared to brick-and-morter casinos and give players more of a chance but at the end of the day the casino needs to make money to exist. It’s just a reality of the business.
The House Edge in Traditional Online Gambling
The house edge in gambling is similar whether the gaming tables are online or on the Las Vegas strip. Inquiring minds might want to know that some of the worst odds in the casino exist at the roulette table. The house edge is more than 5%, thanks in large part to the existence of the green 00 that messes up the black/red, high/low streaks the average roulette player tries to make their money on. One miss on the 00 cancels out many potential winners in one go. And of course picking the 00 and winning is a losing proposition in the long run.
The best house edge in any casino, online or not, is usually at the poker table or the BlackJack table. In a poker room, the house usually takes a percentage of the pot (called a rake) or an entry fee on top of the tournament entry fee.
In BlackJack, a casino that plays with fewer decks and allows players to surrender bad hands has only a very small house advantage between one and two percent. Sure, winning is thus not an even 50/50 proposition, but a savvy player who can memorize and implement a basic BlackJack strategy chart and use card counting to size their bets can actually beat the house in the long run.
Generally speaking though, the average gambler going to a casino for entertainment purposes is going to lose money in the long run.
Why The Houseless Blockchain Casino Is Better
Houseless blockchain casinos are markedly better than their online gambling counterparts for several reasons. Believe it or not, a houseless blockchain-based casino doesn’t just look at players gambling as an opportunity to earn a profit. They look at doing what’s best to both make a profit and create a sense of community among participants. The whole philosophy is to bring back to gambling what was before the days of big brick-and-mortar casinos. That sense of one person playing against another for all the marbles, with no or little involvement from the middleman.
There are three major houseless blockchain-based casinos:
Each of these casinos aims to offer four different distinct features that traditional online gambling sites don’t. They include:
- The ability to provide, track and view provably fair outcomes.
- Offering an environment where players always win.
- Offering faster payouts than most traditional online casinos.
- Encouraging more social interaction.
In traditional online gambling, there is always a feeling that it is players playing against the house, but the above casinos don’t make money by benefiting from a house edge. Particularly in the case of YOUnited. Instead what they do is make money off of transaction fees. Any time someone transfers funds into or out of a crypto wallet, the site takes a small fee. It’s a slower way to make money, but a better way for these blockchain-based properties to grow a loyal base of players, and in the long run they will win out. Just as many Bitcoin purists believe cryptocurrencies will win out over traditional money in the future.
Since these blockchain-based casinos aren’t trying to profit off of players directly, players connect socially because they’re playing against one another in a spirited and fun way that’s totally fair. The blockchain also allows for the results of a dice roll, card game or any other outcome to be publicly displayed. Every transaction is registered on the blockchain and can be reviewed, and nobody can alter the results. At any given time a player who questions the fairness of the game can look through the statistics and see that they are indeed playing a fair game.
That’s the key difference between online gambling sites and houseless blockchain casinos. May the winners be yours, and not the house’s.