Online gambling holds lots of risks related to the fairness of the process and winning chances. Normally, there’s the advantage called the house edge that prevents customers from earning more than the casino itself. Every game has a specific return to player (RTP) index which normally varies from 90% to 99% (that means that 1–10% is the house edge).

But apart from the fact that it’s hard to beat the casino, you can face scam projects. Some websites may hide actual RTP or change rules unexpectedly, some may even not have any license for operation and fool customers by getting their deposits and never paying back their winnings.

How to recognize fraudsters and scammers in online gambling? With the invention of the blockchain, the situation a bit changed for the better. Let’s find out in what ways this technology can help avoid scams.

Basically, a scam is any strategy focused on fooling customers. Croupiers in land-based could replace cards or chips or even change rules, also, there could be rigged machines programmed not to let anybody win. Today, the risk is much higher on the Internet: some or most online platforms have to get licenses but it’s way harder to check their lawfulness.

HOW BLOCKCHAIN MAY HELP?

Blockchain is a decentralized network protected by cryptography algorithms that stores data on multiple computers, visible to all participants. Blockchain is a great solution that eliminates intermediaries in data or money transfers and brings high-level transparency.

Let’s look at how powerful blockchain can be when it comes to gambling.

UNCHANGEABLE RECORDS

Any data recorded in the chain can’t be forfeited, copied, or deleted. Casinos which send the information about RNG and RTP to blockchain can’t change the numbers. It works the same with rules and conditions. Further, blockchain-based casinos can’t impose extra fees behind users’ back.

NO SENSITIVE DATA INVOLVED

On websites that accept payments with digital currencies (that are powered by blockchain), the only information a gambler has to provide is the public addresses of a crypto wallet. For the reason that casinos don’t deal with personal data, there’s nothing to steal for hackers and scammers. The private key for accessing funds is not revealed and remains visible only to its owner.

SMART CONTRACTS

One of the most practical innovations related to blockchain is smart contracts — deals with predefined conditions controlled by the network’s participants. Smart contracts used for payouts in casinos leave no chance for money transfers manipulation.

Blockchain is a useful instrument to fight gambling scam. It can protect both casinos and players thanks to irreversible transactions and transparency. The more the gaming community knows about this technology, the more chances to replace traditional casinos blockchain-based ones have. The way to expand blockchain integration into the industry may start from Bitcoin payments becoming a necessity. Realizing the improvement it can bring, gambling websites will gain more trust and overcome their vulnerabilities to scamming strategies.