Cryptocasino: How Dangerous They Are

In particular, the pandemic is causing casinos to increasingly move into the digital space. Google is now spitting out countless crypto-gambling sites, all of which are trying to lure in similar perks: bonuses, free spins and quick deposits and withdrawals without proof of identification. Is this the secret behind 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 reconciled with the state’s treaty on gambling, which was 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 comprehensive gambling experience despite strict rules and use your cryptocurrencies for gambling, you need to switch to an unlicensed casino.

These unlicensed providers bring an almost unlimited gaming experience. Whether it is blackjack, baccarat, jackpot games or roulette, almost anything is possible on the internet’s unlicensed casinos. However, you pay a great price for this freedom: security.

Fraudulent providers program games in such a way that the fun remains. But what the player usually does not notice is that he is exposed to unfair practice and sometimes just gets cheated. In the worst case, the risky providers deposited coins directly. It is almost impossible to prove the fraud and thus be right, as the deposit is made pseudonymously.

Is crypto trading already wasting?

Another problem is the high volatility, that is, the huge price fluctuations on cryptocurrencies. If you make a profit in the casino, these are linked to the exchange rate of the cryptocurrency. Expected profits can shrink quickly. The volatile market makes gambling in the crypto casino even more risky. This exposes you to the classic risks of the cryptocurrency exchange and the additional disadvantages of gambling.

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

  • Sufferers constantly borrow money from family and friends, mortgage their property or steal to finance their addiction.
  • They think they will soon make a big profit to compensate 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 the UK Castle Craig Hospitalbelieves that crypto trading is very similar to gambling:

So when we bet on the stock market, we bet on the stocks going up or down. It is very similar to 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 behaviors and lose everything they have. There are so many suicides in the stock market. Like gambling.

Tony Marini, Senior Specialist Therapist at Castle Craig Hospital

In bad cases, the road to addiction leads to the dream of big money through the occasional high profit. Driven by the dopamine released during trade, the path can lead to compulsive behavior, isolation, and ultimately classical addiction.

Different gaming behavior at crypto casinos

The digital world is increasingly changing players’ behavior. Ingo Fielder, co-founder of 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 gambling. Many offers in the online area also still take place in a legal gray area, so the regulatory requirements and thus the player protection are less pronounced.

Ingo Fiedler, Blockchain Research Lab

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

The type of means of payment – chips, points, cash, electronic money, credit cards, etc. – have been intensively studied in gaming research. The further away the means of payment used is from the feeling for money, the lower the inhibition threshold and the more intense 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 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 enable minors to participate in gambling, which is often even more susceptible to addiction.

In addition, casinos cannot use the voluntary self-exclusion procedure for problem gamblers suffering from an addiction. With licensed and reputable providers, addicts can withdraw completely from gambling by submitting an application. Applicants will be placed on a self-exclusion list of names. This effectively blocks you from all operators who have signed up for the self-exclusion program.

Here, crypto casinos offer a loophole for gambling addicts: Through the back door, excluded users can continue to play there unattended.

Those affected can call the Federal Center for Health Education to ask for help.

Tax filing of cryptocurrency made easy

In the BTC-ECHO Guide, we show you the best tools for automatically and easily creating crypto tax reports.

To the guide

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