Online gambling

How Cryptocurrency is Changing the Online Gambling Scene in South Africa

But why is this exactly the case? And will such a trend persist?

Let’s dive into the topic to answer these and other questions and see how cryptocurrency is changing the online gaming scene in South Africa.

Crypto adoption is booming in South Africa

According to the latest reports, Africa has one of the highest crypto adoption rates globally, showing an incredible 1,200% increase in value just for the one-year period between July 2020 and July 2021, when countries across the continent received nearly $105.6. billions of digital money. Such a mass adoption of cryptography speaks for itself, bringing a plethora of new opportunities and being one of the main reasons why more and more online casinos and players prefer Bitcoin, Litecoin, Ethereum and other altcoins for sending and receiving payments.

On top of that, it is hard to resist the high level of privacy protection offered by crypto transactions, which are currently subject to zero restrictions. Unlike traditional ZAR payments, when depositing and withdrawing funds, customers of gambling sites and bookmakers do not have to share their names, bank details or other sensitive data.

Cryptocurrencies used for gambling

A pioneer among all digital assets, Bitcoin remains an undisputed leader in terms of popularity among gambling site customers, mainly due to its wide availability. Indeed, all crypto-friendly online casinos that cater to South African players offer BTC as a payment method while the selection of altcoins can vary widely from site to site. It is worth mentioning that Ethereum is currently the second largest cryptocurrency, with more and more fans of slot machines, roulette and card games using it to deposit funds and collect winnings.

Lately, USDT has also caught the attention of the gaming community looking to avoid the risks associated with the volatility of Bitcoin and other cryptocurrencies prone to often dramatic increases and steep declines in value. Tether is not a “classic” cryptocurrency but a stablecoin, which is centralized and pegged (or tied) to a real-world commodity. The USD₮ is pegged to the US dollar, but there are also tokens pegged to the euro, Mexican peso, British pound, and other fiat currencies. The South African Rand is not yet part of the family, but buying USDT with ZAR is a widely available option.

While many gambling websites that operate in South Africa accept USDT, other digital assets that enjoy popularity among gamers are the already mentioned Ethereum and Litecoin, as well as Bitcoin Cash, Ripple and Dogecoin. Considering that today, the global digital financial market has more than 10,000 active cryptocurrenciesit is worth expecting that there will be more options in demand in the near future.

Provably Fair Technology

The emergence and development of crypto-gaming have helped answer the eternal question: How can players be sure that the results are not “rigged”?? Thanks to Provably Fair technology, customers of online gaming sites now have the possibility to check the outcome of each spin or bet they have made.

Even though it is incredibly simple for players to use and understand, the PF system is a very complex cryptographic algorithm that takes a lot of time and knowledge to work like clockwork. Without going into details, this advanced technology was created to ensure that the outcome of each bet is not only affected by the player’s stake, but cannot be predicted in any way.

SoftSwiss, a large international company based in Malta, was the first software developer to widely implement the Provably Fair verification feature. SoftSwiss has an award-winning portfolio of proprietary games offered under the BGaming brand, which is in high demand across South African casinos. It’s safe to say that the biggest advantage of PF technology is the ability for casino customers to check and verify all game results on their own and in real time, without having to involve third parties.

Is crypto gambling legal in South Africa?

When it comes to the legality of online gambling using cryptocurrencies, the situation in South Africa does not differ much from that in the rest of the world where it remains largely unregulated. In the absence of specific legislation, playing Bitcoin casino games is neither officially allowed nor prohibited.

Naturally, the thorny path to the end goal begins with the recognition of digital assets as legal tender by the relevant authorities. This summer, the South African Reserve Bank (SARB) announced the introduction of new regulations regarding cryptocurrency trading in the country over the next 12 to 18 months.

In line with the global trend, the SARB is going to declare cryptocurrencies as a financial product, which means that they would fall under the jurisdiction of the Financial Intelligence Center (FIA) and would be subject to the AML (Anti-Money Laundering) laws and CFT (Combating the Financing of Terrorism).

As it stands, the buying and selling of cryptocurrencies in the country is legal but unregulated. This is clearly confirmed by the official statement of the SARB published in 2014 on this subject, which says that the Bank “does not monitor, oversee, or regulate the virtual currency landscape, systems, and intermediaries in terms of their effectiveness, soundness, integrity, or robustness.”

Returning to the subject of crypto gambling, the attitude of gambling authorities towards this type of entertainment change for the better fast enough. More and more countries are in favor of blockchain-based services in general, while a number of renowned international gaming jurisdictions are licensing online casinos and sportsbooks that accept BTC and altcoins, with Curacao being on your mind.

Benefits of gambling with cryptocurrency

Gambling with cryptocurrency has many advantages ranging from fast payouts and low transaction fees to a high level of security and better incentives. From a gambler’s perspective, there are plenty of reasons to choose Bitcoin or Ethereum from the long list of banking options available to South Africans who enjoy Vegas-style entertainment. Naturally, the most important thing is that the use of crypto facilitates almost instant deposits and fast withdrawals usually processed no later than 24 hours, which is usually a challenge with traditional fiat options.

Players not only avoid all the hassle of bank or card authorizations but also benefit from low withdrawal fees, especially since the majority of crypto wallets allow users to set their priorities and find the balance between speed and costs. Creating wallets for digital assets does not require providing personal information about their owners, which facilitates a very high level of privacy protection and eliminate the risk stolen or misused sensitive data. It’s no secret that online casino players also want to win from crypto due to its largely unregulated nature, which often means those winnings go untaxed.

Finally, gambling sites tend to encourage customers to deposit with cryptocurrencies, offering them better bonuses. Modern bettors never miss an opportunity to get the most out of their game and therefore realize that that little bit extra received with a Bitcoin deposit can be a game-changer. Additionally, the attractiveness of the welcome bonus is often the deciding factor in choosing a new casino to open an account with, so the ever-increasing popularity of crypto-friendly websites is no surprise.

So how is cryptocurrency changing the online gambling scene in South Africa? The short but complete answer to this question would be to make Internet gaming more readily available, more player-friendly, fairer, and certainly much more fun. The emergence and spread of Bitcoin and similar digital assets has helped overcome many challenges and ushered in a new era in casino entertainment.