Cryptocurrencies have been an integral part of the iGaming industry for well over 10 years. During that time, the blockchain technology behind cryptos has evolved considerably and brought new possibilities, most notably those in the form of NFTs or non-fungible tokens. Continued acceptance of NFTs across iGaming and other industries could see NFTs’ market value reach $230 billion by 2030. Therefore, many iGaming experts believe the sooner online casinos embrace and implement the technology in their daily operations, the faster they can capitalize on its potential.
The biggest impact NFTs can have on online casinos is on the growth of the player fan base facilitated by different loyalty programs based on NFTs and many other perks. Join us as we explore the future of online gaming, Web3, and NFTs.
What Are NFTs?
NFTs are not interchangeable like cryptocurrencies but are unique and represent anything that’s one-of-a-kind. Since blockchain stands behind NFTs, each has a special identifier that goes back to the asset’s owner in real-time. Also, this makes NFTs’ use and ownership completely transferable.
The value of a given NFT is determined by the item’s rarity, its significance for the culture, and other elements, such as utility.
NFTs and Gambling — Current Applications in the Industry
NFTs as Prizes and Rewards
The rise of NFTs has brought about a significant change in the structure of online casino games. Namely, casino software providers have created games that, instead of the usual cash or coin prizes, use NFTs as prizes. As a player, you can bet on slots, table games, or any other casino game for a chance to win NFTs, which can later be sold for real money. One of the best examples of such usage of NFTs is in Red Tiger’s NFT Megaways™ slot, where you can win unique Crypto Punks characters as prizes.
With NFTs, players can now have true ownership of the in-game assets, such as any symbols in the game. When players hold minted NFTs as in-game assets, they can transfer them to other games, sell them to gain profit, and overall have a more immersive gaming experience and feel more in sync with the games themselves.
NFTs in Loyalty Rewards
Instead of earning free spins or site credit, players can now receive freshly minted NFTs as rewards they can later trade or sell. Since these loyalty programs usually consist of multiple tiers, the higher the players get, the more valuable NFTs would be theirs to claim.
Furthermore, NFTs can be used as entry tickets to special tournaments and competitions or to trigger additional discounts. Recently, BC Game launched an exclusive NFT network named Degen Pass, which gives holders of unique Degen Pass NFTs access to decentralized casino games, prize drops, VIP programs, and many in-game perks and benefits, such as unique avatars and even a share of the jackpot.
NFTs Bolstering Player Anonymity and Security
NFTs and Online Casino Gambling in Metaverse: The Future
You can bet on the games using NFTs or even purchase entire casinos and run your business in Metaverse. Since NFTs are a way of monetizing digital assets in Metaverse, certain dangers follow.
The possibilities of NFT in Metaverse casino projects are endless, but they still face legal obstacles on that road. How will these casinos be regulated and controlled? What would be the point of using NFTs to bet anonymously since regulated casinos require players to pass KYC checks?
Still, with wider acceptance of NFTs in the industry, legal frameworks will be established and pave the way for safe and legal use of digital assets in online casino gambling.
