Security vs growth: The global expansion of cryptocurrency casinos
Crypto market evolution
Experiencing a boom in popularity over the last years, Bitcoin has reached an all-time value high in 2024. This popularity combined with its technical capabilities inspired TrueLabel to create a solution that mirrors the preferences of both the cryptocurrency and igaming community, providing operators another sustainable revenue stream.
Certainly, many operator concerns relate to cryptocurrency waving too many red flags to take the risk. Some of the main issues focus on the decentralised and largely unregulated nature of cryptocurrency, plus the relative anonymity of transactions, both of which means many operators may struggle to fulfill their licensing requirements.
Despite these concerns, cryptocurrency casinos are experiencing a rise in popularity. And with 780 operators now supporting cryptocurrencies and at least 60% of all Bitcoin transactions relating to igaming, the proof is in the numbers.
As Vinnikov explains, “Gaming has always been a prime use for crypto tech. The behaviour and preferences of the crypto audience diverge from those of traditional fiat players, prompting a need for unique features in crypto casinos.”
But how can operators capitalise on this potentially lucrative opportunity?
“Originally, some operators could find success by simply launching a provably fair dice site. However, the market has since evolved, and this is no longer sufficient. Now, it’s less about the tech and more about what it brings to the table.
“Operators now compete based on the quality of service they offer. Those who provide the best player experience, such as crypto payments and specialised features, emerge as winners”, explains Vinnikov.
Flexibility is a key component in the adaptive way in which TrueLabel has created its solutions. Now, the team specialises in providing customised and fully compliant cryptocurrency casino platforms with a host of unique features, supporting over 100 currencies and providing a games catalogue of more than 150 providers.
Creating the ideal cryptocurrency platform
“Since 2017, we have focused on cryptocurrency operations and the associated challenges. Back then we honed the essential components needed for a seamless casino technology tailored to crypto operators, while also recognizing the distinct preferences of crypto players compared to fiat players. We have continuously improved our in-house platform and, in 2020, expanded our offerings to external clients. This allowed us to gather valuable feedback and adapt alongside our operators to meet their evolving needs.” says Vinnikov.
Within both its traditional fiat and crypto casino solutions, TrueLabel uses research findings to ensure features match what operators, and ultimately players are looking for. Expanding from the initial requirements of supporting cryptocurrency, to the more refined characteristics that aim to boost player engagement and ultimately the overall user experience.
“Recently, we have implemented a significant update to our bonus engine, featuring advanced analytics, new templates for quick bonus creation, robust automation, and other useful options.
“We’ve also launched an advanced referral system alongside our comprehensive loyalty program, which includes cashbacks, rakebacks, and other numerous features to enhance player engagement.
“TrueLabel’s platform extensively leverages AI prediction tools and features for both players and operators. We provide community features like player chats and leaderboards, as well as a gamification toolkit comprising both proprietary developments and top-tier partner solutions.”
Cryptocurrency casinos provide operators a unique alternative to their traditional revenue streams. But with many operators having little experience outside of fiat payment methods, opting for the support of a leading cryptocurrency expert like TrueLabel can change the game. Providing a platform that balances legislation, regulation and a vast gaming option that will suit the needs of all players.
As Vinnikov explains, “Many of these features exist in the market, either combined or partially. However, our unique tailored approach, coupled with a swift and guided onboarding process, positions TrueLabel as the optimal choice for our clients.”
Navigating gaming licensing requirements
“There’s a limited selection of games natively accepting crypto bets, unless your platform provider supports crypto-to-fiat conversion on the fly. TrueLabel has this feature polished, offering a full range of game and sports content regardless of native crypto penetration.”
There may be less restrictions around making crypto payments, however, Vinnikov points out that game limitations can actually become the security sticking point for an operator hoping to launch as the next leading cryptocurrency platform.
“While crypto payments may be unrestricted, licensed games often face stringent limitations. It’s essential to consider licensing requirements and ensure compliance with country-specific regulations.”
However, navigating licensing requirements and regional variations in legislation can prove difficult if operators work alone. As with traditional online casinos, legislation can evolve at pace, making it difficult to keep up with accurate localisation and potentially falling foul of stipulations required to operate legally in a particular market.
There are also complexities born out of the relative anonymity of cryptocurrency transactions that make it challenging for operators to comply with licensing requirements.
Despite these concerns, cryptocurrency has set its place firmly in the igaming industry, providing a unique revenue stream for operators and more flexible payment options that players expect from a leading online casino.
Reliable payment transactions
Keeping compliant with licensing isn’t the only challenge to contend with as cryptocurrency casinos face the issue of less stringent payment regulations as well as other associated onsite security risks. However, for Vinnikov, neither need to be a concern as long as operators retain strict policies and ensure player safety through data analysis.
“Although the crypto igaming market is still emerging in terms of regulation, operators face common risks and should sustain clear anti money laundering, counter terrorism financing, KYC, and GDPR policies, monitor transactions, and take care of player security.
“TrueLabel possesses a perfect blend of payment partners and complies with all regulations for fast onboarding.
“Speed of transactions is, of course, one of the main advantages of crypto casinos for the players, while operators diversify their payment setup. As some players still experience issues with obtaining cryptocurrency, we’ve suggested built-in crypto exchanges to our clients, allowing players to easily top up their balances or purchase crypto using their preferred methods.”
Keeping player security and igaming legislation at the forefront of its solution, TrueLabel focuses on balancing the interests of operators, players, and regulators.
Enhanced security measures
While the evolution of technology can be hugely positive for the industry, the counter to this is the increasing number and diversity of potential fraud attacks. With experts suggesting a 15% growth of cybercrime per year for the next three years, costing $10.5 trillion annually from $3 trillion in 2015, operators will need support in navigating this potentially costly challenge.
For Vinnikov, this concern is mitigated through TrueLabel’s stringent and proactive fraud detection technology.
“In terms of safeguarding our partners against fraud, we employ both passive and active measures. Passive tools include player scoring at every activity stage, enabling early fraud detection and the application of appropriate protective measures, like setting limits on bets and withdrawals.
“Additionally, our proactive anti-fraud team monitors and analyses player behaviour, intervening at crucial stages, such as during fund withdrawals.”
While fraud is a common concern for cryptocurrency operators, TrueLabel supports partners in identifying risk through its comprehensive list of security provisions, including information security. With financial information being one of the most sought-after data stacks, operators hoping to expand their cryptocurrency offerings will need to strengthen their reserves against potential attacks. Facing the continual onslaught of financial fraudsters is not an easy challenge, but one that Vinnikov feels TrueLabel can confidently succeed in through its leading security measures.
“Our approach involves implementing a combination of solutions within our platform’s architecture, including top-tier network and infrastructure providers. Through continuous monitoring, we can swiftly respond to emerging threats and maintain a high level of security in data processing and storage.”
Predicting player behaviour
In addition to detecting early fraud, analysing player behaviour through a proactive anti-fraud system is key to flagging potential concerns, as well as recognising when players may be falling into negative playing behaviours. However, achieving this in a cryptocurrency market of relative anonymity can be a challenge for operators unfamiliar with tracking technology. For example, at the point of sign up when a player’s journey begins, operators may immediately hit a stumbling block if unsure of how to adapt tracking technology to ensure each player is fully vetted and tracked for security and safety reasons.
For Vinnikov, utilising the latest technology, including artificial intelligence (AI) capabilities can be pivotal in predicting player behaviour and retaining a safe gaming experience.
“We ensure the technical and operational side of both player safety and fraud prevention. TrueLabel’s anti-fraud team and AI solution are crucial in protecting operators from fraudsters, bonus hunters, and other malicious users. Our AI technology, particularly its predictive player behavior analysis, allows us to detect and mitigate potential threats effectively.
“We also employ internal and external mechanisms for player scoring, including specialised third-party solutions, to accurately assess player activity and identify risks.”
Global cryptocurrency casino challenges
On top of challenges relating to data processing and ensuring robust security measures, cryptocurrency casinos still have the same issues as traditional operators such as localisation.
Perfecting a localised offering for each regional preference in terms of licensing requirements, gaming style, bonus offers, and even unique gamification opportunities is something that will push an operator’s revenue capabilities to the next level. Something which TrueLabel is confident in supporting its partners to achieve.
“At TrueLabel, we focus on giving operators the guidance they need to make smart decisions and optimise their marketing strategies for success.”