Transcript Bitcoin in iGaming

Overview
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Launched officially on June 10th 2014
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Licensed and operated from Curacao
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BTC in and BTC out
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Casino launched in November 2014, Poker launched in March 2015
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Currently building a peer-to-peer betting exchange on the blockchain using multi-sig
addresses
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Approx. 40% of all BTC transactions are gambling-related
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Bitcoin iGaming is a massive growth industry
Advantages of BTC & BTC acceptance
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Instant deposits and withdrawals – 24/7
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No credit card fees and much lower overheads when operating a
BTC sportsbook/casino in comparison to the legacy payments system
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BTC sportsbooks can thus offer better odds – or generate more profit
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No FICA/KYC/licensing or equivalent requirements
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Extend acceptance to countries not reached by Visa or Mastercard
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Payment method for the unbanked
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No fraud or fraudulent chargebacks!
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Not subject to payment embargos
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Processing fees essentially zero
Global legal attitudes towards Bitcoin
Current landscape of Bitcoin in iGaming
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Regulation of Bitcoin
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Decentralized nature inhibits third party shutdown
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Exchanges will be a focal point of government scrutiny
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Pressure on larger merchants
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Not currently regulated as legal tender (think of ‘play money’ poker chips)
United States – Virtual currency exchanges defined by FinCEN
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Subject to AML/KYC guidelines
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Licensed as money services business (federal)
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Licensed as money transmitters (states)
A license is not required to operate Bitcoin gaming services
Current landscape of Bitcoin in iGaming
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Various risk management strategies:
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BTC-only games
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BTC converts to national currencies
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SatoshiDice pioneering BTC-only gambling site – April 2012 launch Sold for 126,315 BTC in July 2013 – $12.4M USD at the time
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Several major BTC-only operators – owners are anonymous to the public
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BetVIP.com is the first and only licensed Bitcoin-only sportsbook
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Preparing for future regulation
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Transparent and thus builds trust with the consumer
Key drivers of growth
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Product – Being able to move money instantly without KYC reduces barriers
to client movement.
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SEO – From nowhere to top 2 results for ‘bitcoin sportsbook’ and many
related terms.
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PR – Featured in major international publications and websites such as the
Wall Street Journal, Coindesk, The Telegraph, Gambling Insider, eGaming
Review etc.
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Forum presence & affiliate marketing – Bitcoin is highly community driven.
Challenges
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Security!
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Payment processors
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Understanding gambling marketing restrictions
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Targeting Bitcoin owners/users – where?
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Converting traditional cash sportsbook users to using BTC
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CRM with a relatively anonymous userbase
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Legislation/place of effective management
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Support and withdrawals need to be instant 24/7
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Risk management with shrewd punters
Looking to the future
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Bitcoin is a democratization of the iGaming market similar to what was
seen 15 years ago with the removal of upfront capital requirements and
brick and mortar investments.
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Bitcoin is a hyper-efficient affiliate system – payout to anyone, anywhere
instantly without the need for currency exchange fees etc.
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Emergence of Bitcoin regulation is a work in progress, will take many years
even in leading markets like the United States
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Casinos can be made ‘provably fair’
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Clients do not necessarily want to be anonymous –
it is quite likely that a much more efficient method of KYC will develop
Looking to the future
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Gaming cannot afford to shy away from these emerging technologies as
Bitcoin becomes more and more mainstream
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Bitcoin ATMs will become commonplace – there is already one right here
in JHB in Kyalami and they are gaining popularity around the world
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Payment processors such as BitPay/Coinbase/PayPal are allowing
merchants easy avenues to Bitcoin acceptance and will keep growing
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Massive venture capital investments in start-ups internationally
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Digital currencies are the future of online payments – but still a few
hurdles to overcome
Thank you for your time.
Contact:
E-mail: [email protected]