Crypto Casinos: This Is How Dangerous They Are

The pandemic in particular is pushing casinos to increasingly move into the digital space. Google now spits out countless crypto-gaming sites, all trying to lure similar perks: bonuses, free spins, quick deposits and withdrawals without proof of ID. Is this the secret to quick money? Probably not.

No license to play

Due to their pseudonymous nature, cryptocurrencies offer more privacy than transactions with Visa and Co. Importantly, this cannot be reconciled with the State Gambling Treaty introduced in 2021. Because in Germany you can only operate your online casino with a license. All players are therefore subject to strict state supervision. If you want to enjoy a full gaming experience despite strict rules and use your cryptocurrencies to gamble, you will need to upgrade to an unlicensed casino.

These unlicensed providers offer an almost limitless gaming experience. Whether it’s blackjack, baccarat, jackpot games or roulette, almost everything is possible in casinos without an Internet license. However, you pay a high price for this freedom: security.

Fraudulent providers program the games in such a way that the fun remains. However, what the player usually does not notice is that he is exposed to unfair practices and sometimes he simply gets ripped off. In the worst cases, the cream of dubious suppliers deposited parts directly. It is almost impossible to prove the fraud and therefore to be right, since the deposit is made under a pseudonym.

Is Crypto Trading already playing?

Another problem is the high volatility, i.e. the huge price fluctuations of cryptocurrencies. If you make profits in the casino, these are linked to the cryptocurrency exchange rate. The expected profits can quickly decrease rapidly. The volatile market makes gambling in the crypto-casino even more risky. This exposes you to the classic risks of crypto trading and the added disadvantages of gambling.

As with crypto exchanges, quick profits are possible; but you might as well put a lot of money in the sand. Many therapists already consider cryptocurrency trading as a gambling addiction, as symptoms similar to classic addiction to casino or slot games can occur:

  • Victims are constantly borrowing money from family and friends, pawning their property, or stealing to finance their addiction.
  • They believe they will soon make a big profit to make up for the losses.
  • Those affected suffer from mood swings, depression, irritability, restlessness, and hopelessness.
  • They also deny the problem or lie to those around them.

Tony Marini, UK Senior Specialist Therapist Castle Craig Hospitalbelieves that crypto trading is very similar to gambling:

So when we bet on the stock market, we are betting that stocks will go up or down. It is very similar with Bitcoin. I mean, all markets like this are a gamble for me. Some people do this as a business. Some people will develop compulsive behavior and lose everything they have. There are so many suicides in the stock market. Just like the game.

Tony Marini, Senior Specialist Therapist at Castle Craig Hospital

In bad cases, the path of addiction leads to the dream of big bucks through occasional high profits. Fueled by the dopamine released while trading, the path can lead further to compulsive behavior, isolation, and ultimately classic addiction.

Different gambling behaviors in crypto-casinos

The digital world is increasingly changing the behavior of gamers. Ingo Fielder, co-founder of the Blockchain research labs in Hamburg, has been researching his main topics for years: gambling and blockchain. The expert explained to BTC-ECHO:

Online gambling tends to be more addictive than physical gambling. There are several reasons for this, especially since they usually spin much faster than physical gambling games. Many offers in the online field also take place in a legal gray area, so that regulatory requirements and thus player protection are less pronounced.

Ingo Fielder, Blockchain Research Lab

The choice of online casino payment method also affects player behavior, says Fielder:

The type of payment method – tokens, points, cash, e-money, credit cards, etc. – has been studied extensively in gambling research. The further away the means of payment used is from the feeling of money, the lower the inhibition threshold and the more intensive the gambling behavior. The same has not yet been studied for cryptocurrencies, but a similar effect can be expected.

Ingo Fiedler, Blockchain Research Lab

No ID, no self-exclusion procedure

With crypto-casinos, age verification is simply not possible because no personal information is required. In this way, the operators of these casinos allow minors to participate in gambling, which is often even more likely to develop an addiction.

Additionally, casinos cannot use the voluntary self-exclusion process for problem gamblers with addictions. With licensed and reputable providers, addicts can opt out of the game completely by submitting a claim. Applicants will be placed on a self-exclusion list of names. This effectively blocks you from all operators who have joined the self-exclusion program.

Here, crypto-casinos offer a loophole for gambling addicts: through the backdoor, locked out users can continue playing unsupervised.

Those affected can call the Federal Health Education Center for assistance.

The simplified cryptocurrency tax return

In the BTC-ECHO guide, we show you the best tools to create crypto tax returns automatically and easily.

To the guide

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