Crypto news outlets across the web are reporting that PayPal may be about to make a foray into cryptocurrency in a big way. With an estimated 325 million active PayPal accounts spread across the globe, any formal adoption by the payment giant would be a big step forward for Bitcoin and all other cryptocurrencies. It’s not official yet, but it’s also no secret that PayPal is hiring blockchain developers meaning that using PayPal as an on-ramp to cryptocurrency (and having PayPal collect fees for that, which is what the company does best) is not out of the question.
Such a big move would really open up the floodgates as far as the possibilities for the accelerated adoption of cryptocurrencies in a definitive way. How does that impact Bitcoin as far as the gambling scene is concerned?
Well naturally gambling websites make money by giving the house an edge over the gambler, but they can also make money collecting fees. Since gambling operators use cryptocurrency to try to avoid dealing with third-party payment providers like PayPal, it might make sense for these operators to also sell Bitcoin directly.
Will gambling sites eventually join PayPal and offering gamblers an on-ramp to crypto without having to utilize a third-party merchant?
How Gambling Sites Could Offer Bitcoin Directly
As with any big move that increases crypto adoption, the gambling world would need a big domino to fall in order for hard-core gamblers to take it seriously. So the hope would be that a major gambling operator like Bovada might be that first domino.
Bovada was formerly owned by a Canadian billionaire named Calvin Ayre who happens to also be a citizen of Antigua, a Caribbean nation that provides gambling operators with a favorable regulatory environment. Ayre has deep enough pockets to hire blockchain developers and create his own exchange. He is also knowledgeable enough to promote the virtues of cryptocurrencies. Ayre is a big fan of Bitcoin SV, and his media company also runs a notable cryptocurrency website.
If he wanted to, Ayre could simply build a crypto exchange, find some wealthy people to provide liquidity to that exchange and hire developers to run it from a security standpoint. It would be only natural that he offer said service to his former company Bovada. Of course Bovada management could easily employ a third-party merchant services provider in the Bitcoin space like BitPay or Coinbase to simply integrate wallet capabilities directly into Bovada’s platform. It would actually be a really easy transition for a brand as big and as popular as Bovada to allow gamblers to purchase Bitcoin directly on the Bovada website.
Using The Blockchain to Provide Bitcoin Directly on Gambling Sites
Aside from having to hire developers or directly embrace a partnership with a crypto exchange, an option for smaller gambling operators is to simply use blockchain projects dedicated to offering merchant services in a decentralized fashion at a big discount in comparison to Visa, MasterCard or even PayPal.
One such project is called Flexa. Flexa uses a decentralized network and a collateral-friendly model that settles payments in less than one second. Its network guarantees zero risk as far as fraud and chargebacks are concerned. It also allows users to spend cryptocurrency while the recipient of those payments (in this case gambling operators) could choose to receive payment in crypto or traditional national currencies. This makes it efficient, profitable and secure to accept cryptocurrency without having to hire developers, build an exchange or do business with more expensive third-party payment providers like Paypal.
If it’s So Easy, Why Aren’t Gambling Operators Selling Bitcoin Directly?
The reality is, even for a big gambling operator like Bovada Bitcoin Casino, which already accepts cryptocurrency for wagering, the market for gamblers hungry to buy Bitcoin directly from an operator is probably still fairly small. If PayPal indeed confirms a big move into Bitcoin buying and selling over the next year, every business that uses PayPal or other third party payment processors like Visa or MasterCard will have to consider doing the same thing.
The online gambling industry which is already proving to be crypto friendly will probably be one of the first industries to follow suit once PayPal proves that engaging in crypto transactions and offering a direct on-ramp is profitable. The funny thing is PayPal making a big move could eventually teach people not to use PayPal and similar services, but that same danger doesn’t exist in the gambling world because gambling sites ultimately turn most of their profit thanks to the house edge, and not so much because of payment-related fees.
Look for offering direct Bitcoin buying and selling opportunities to be a great gamble for gambling operators in the future. It’s only a matter of time.