The pandemic in particular is causing casinos to increasingly move into the digital space. Google is now spewing out countless crypto gambling sites, all trying to lure in with similar perks: bonuses, free spins, and fast deposits and withdrawals without proof of identification. Is this the secret of fast money? Probably not.
No license to play
Due to their pseudonymous nature, cryptocurrencies offer more privacy than transactions with Visa and Co. Above all, this cannot be done with the one introduced in 2021 State Treaty on Gambling arrange. 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 comprehensive gambling experience despite strict rules and use your cryptocurrencies for gambling, you would have to switch to a casino without a license.
These non-licensed providers bring an almost unrestricted gaming experience. Whether it’s blackjack, baccarat, jackpot games or roulette, just about anything is possible in the internet’s unlicensed casinos. However, you pay a big price for this freedom: security.
Fraudulent providers program 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 is sometimes simply ripped off. In the worst case, the dodgy providers cream deposited coins directly. It is almost impossible to prove the fraud and thus to be right, since the deposit is made pseudonymously.
Is Crypto Trading Already Gambling?
Another problem is the high volatility, i.e. the enormous price fluctuations of cryptocurrencies. If you make profits in the casino, these are linked to the exchange rate of the cryptocurrency. Expected profits can quickly shrink rapidly. The volatile market makes gambling in the crypto casino even more risky. This exposes you to the classic risks of the crypto exchange and the additional disadvantages of gambling.
As with the crypto exchanges, quick profits are possible; but you can just as well put a lot of money in the sand. Many therapists already see trading in cryptocurrencies as a gambling addiction, as symptoms similar to classic casino or slot gambling addiction can occur:
- Sufferers constantly borrow money from family and friends, pawn their belongings, or steal to fund their addiction.
- They believe that they will soon make a big profit to make up for losses.
- Those affected experience mood swings, depression, irritability, restlessness and hopelessness.
- They also deny the problem or lie to those around them.
Tony Marini, Senior Specialist Therapist in UK 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 of this kind 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 gambling.
Tony Marini, Senior Specialist Therapist at Castle Craig Hospital
In bad cases, the path to addiction leads to the dream of big money through occasional high profits. Fueled by the dopamine released during trading, the path can lead further to compulsive behavior, isolation and ultimately classic addiction.
Different gaming behavior at crypto casinos
The digital world is increasingly changing the behavior of players. 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 various reasons for this, above all they usually run much faster than physical games of chance. Many offers in the online area also still take place in a legal gray area, so that the 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 means of payment – chips, points, cash, electronic money, credit card, etc. – has been intensively examined in gambling research. The further away the means of payment used is from the feeling for money, the lower the inhibition threshold and the more intensive the gaming behavior. The same has not yet been investigated for cryptocurrencies, but a similar effect can be expected.
Ingo Fiedler, Blockchain Research Lab
No proof of identification, no self-exclusion procedure
With crypto casinos, age verification is simply impossible as no personal information is required. In this way, the operators of these casinos make it possible for minors to participate in gambling, who are often even more susceptible to addiction.
Furthermore, casinos cannot use the voluntary self-exclusion procedure for problem gamblers suffering from an addiction. With licensed and reputable providers, addicts can withdraw from gambling entirely by submitting an application. 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 back door, excluded users can continue playing there unsupervised.
In the Federal Center for Health Education Victims can call for help.
Cryptocurrency tax filing made easy
In the BTC-ECHO guide, we show you the best tools for automatically and easily creating crypto tax reports.
To the guide