Is Crypto Taking Over the Online Betting Industry in the UK?
The UK has a very strong gambling industry, especially when it comes to online casinos. Because having secure payment options is a must, many online casinos offer a variety of different payment methods for players to use. Increasingly, these payment methods are geared toward providing players with access to speedy, secure and anonymous payments. Just look at the rise of Trustly in recent years. However, one of the best payment methods to encompass these different attributes is, of course, cryptocurrency.
But it’s still not used that much at UK online casinos. So why is this? Let’s take a look at the pros and cons of cryptocurrencies as an online casino payment method.
The positives of crypto payments
As mentioned, there are a number of different reasons why cryptocurrencies are becoming a popular option when making deposits and withdrawals. For one, it’s a very fast payment method. These days, players are increasingly looking to get their winnings and payouts as fast as possible. And cryptocurrencies provide this option. Players can typically get their winnings in less than ten minutes, though this depends on the crypto being used and the number of confirmations required for a transaction.
Another positive with crypto payments is that they are anonymous. There’s no personal data attached to a crypto wallet, and subsequently, this is not passed on to the casino. This means that all transactions can’t be traced to a person. As these are decentralized currencies, all money and earnings are yours, too. They cannot be seized or taxed under UK law at this time.
Finally, cryptos also provide high levels of safety and security. All transactions occur on the blockchain, which is a transparent recording ledger. This means that all transactions can be traced and are therefore trackable. Furthermore, transactions can’t be reversed or changed.
Downsides to cryptos
However, it’s not all great when it comes to using a cryptocurrency at an online casino. Currently, in the UK, for example, crypto casinos are now legalized or licenced under UK law. There’s a lot of grey area when it comes to crypto as a whole, so the UK has yet to allow this method of payment at UKGC-licenced casinos. Part of this has to do with money laundering regulations. As crypto is anonymous, there are mounting concerns that such payment channels will encourage and enable more elicit activities, something the UK Gambling Commission seeks to reduce. That’s not to say you can’t access a casino with crypto as a UK player, the casino will simply be licenced outside of the UK. This comes with its own issues though, with regard to safety and security.
Another issue with crypto is that they are very volatile. Though they are not impacted by
inflation, they are very volatile. Value and prices can change hourly, meaning that a deposit can be valued much lower or higher in just a matter of hours. As such, there is an inherent risk behind making any transactions with this type of currency. It’s easier to lose larger amounts of money quickly with crypto, and has the potential to cause problem gamblers or irresponsible gambling.
It’s also not easy to start up with crypto. For anyone who doesn’t really know much about it, buying cryptocurrencies is a complicated process. It requires more information than a regular payment method, and often this is simply too much for the average player to contend with.
Top payment methods for online casinos
However, cryptos are still getting more common at online casinos in the UK, as long as the casino abides by the strict regulations in place. That being said, there are still more traditional payment methods beating out cryptos at this time. Let’s take a look at what they are.
eWallets
Without question, eWallets, since their introduction, have become one of the top options for making speedy, secure online payments. Like crypto, eWallets don’t require you to provide your personal or financial details to the casino. Instead, all transactions go through a middleman — the eWallet. Top eWallets like Skrill, Neteller and PayPal are widely available at online casinos. In fact, there are many UK PayPal betting sites, partly because this method is simply one of the easiest to use and doesn’t require much in the way of setup time. PayPal also offers speedy withdrawals, a wide transaction budget, and clear, transparent fees.
Card payments
While credit cards are banned from use in online casinos in the UK, debit cards are not. These days you can still very easily make a deposit or a withdrawal using a Mastercard or VISA. Card payments like this are very secure, as they operate through your bank account. This means you have to go through the various steps of security as initiated by your bank. However, while they are great for security, and also for those looking to make larger deposits or withdrawals, they’re not so great when it comes to speed. In fact, card payments can often take up to a week to process.
Phone payments
Finally, pay by phone methods are also increasingly popular. Players can simply link their monthly phone bill using systems like Boku, to their chosen casino. This means that the deposit is linked to the phone bill and paid each month. What’s good about this method is that it has a very low deposit limit. As such, it’s a great way to limit spending, regulating your gambling bankroll effectively. However, withdrawals can’t be made to this method, which makes it hard to claim any winnings.
At the end of the day though, there are plenty of payment options in the UK. Cryptocurrencies are on the rise and do offer a great alternative to some of the more traditional online payment methods. However, it’s likely that regulations will become ever-stricter when it comes to crypto, as the UKGC seeks to curb any illegal activities, and ensuring all aspects of UK gambling remains fair and transparent to all parties.