Are NFT Casinos the Future of Online Gambling?

Friday, June 17th, 2022, 10:10:45 AM

You must be living under the rock if you have not heard of NFTs yet. Gaining tremendous traction, non-fungible tokens, mainly referred to as NFTs, have been one of the hottest topics in the world of crypto since 2020.

As digital assets, NFTs are primarily used to represent digital artworks. Or more precisely, they allow buyers to own a digital item with built-in authentication, serving as proof of ownership over the original piece of digital art. Besides art, NFTs are used in video games, where players can purchase characters and items to perform better.

Artwork of Crypto World Network

NFT application is possible in various areas, and it comes as no surprise that the online gambling industry has embraced it. Although we are dedicated to all things e-wallet, we make a digression this time to discuss NFT casinos. Stay with us to find out whether NFTs will change the way we play online casino games today and if NFT casinos are the future of online gambling.

What Is an NFT Casino?

An NFT casino is a gaming venue that utilizes NFT technology to provide its customers with an opportunity to gamble with NFTs or to get rewarded in digital assets. Online casinos can apply NFTs in various ways, including the following:

Wagering NFTs

While crypto gambling has been around for quite some time, betting with NFTs could be the next big thing in the online gambling industry. NFTs can be used as betting tokens, so instead of wagering in digital or fiat currencies, you can place NFT bets.

Staking NFTs for a casino share is also one of the options. These innovative concepts could make gambling more attractive to the younger generation that has not been interested in traditional casinos.

Loyalty schemes

Most online casinos offer some kind of loyalty program. However, NFT casinos can reward their most loyal customers with NFTs instead of standard incentives, such as bonuses and free spins.

NFT casino games

NFTs allow casinos to offer specialized gambling games based on blockchain technology.

Using NFTs to provide liquidity

NFTs holders can add their digital assets to slot games, for instance. The value of their NFT will be automatically determined, and if it is lost during the gameplay, the NFT owner will receive the amount determined by the algorithm.

NFT casino marketplace

Gambling sites can sell their merchandise or even parts of their venue digitally using NFT technology. In 2021, some casinos came up with this concept offering digital artwork collections and launching innovative utility NFTs. Some of them have even set up their own marketplace to sell NFTs.

NFT Casinos and Metaverse

The metaverse is another term you must have been seeing everywhere lately. To put it simply, it refers to a virtual world where no-physical entities exist. The concept combines virtual reality and augmented reality, thus bringing the digital and physical worlds together.

Man wearing a virtual reality glass to experience Metaverse space.

Another term, sometimes used interchangeably with the metaverse, is web3, which refers to the third, more immersive iteration of the internet. The thing that makes the metaverse and web3 come together is the blockchain technology web3 will also be based on.

Although both concepts are still in development, the first metaverse casinos have already emerged. And guess what? Today you can even join NFT casinos operating in the metaverse. By definition, a metaverse casino is a virtual casino existing on a virtual world browser-based platform, such as Decentraland. It is interactive and allows players to use cryptocurrencies for gambling.

So, what is the difference between a regular crypto casino and an NFT casino in the metaverse? If you are curious to find out, we are ready to lend you a helping hand.

Difference Between Crypto and NFT Casinos

First of all, metaverse casinos are fully decentralized. Yet another term to understand. In a nutshell, a decentralized casino is a casino based on blockchain technology and decentralized finance (DeFi). In practice, it means that anyone can gamble at it as long as they have access to cryptocurrencies. Furthermore, games are not stored on a single server but distributed among casino patrons.

The most significant difference between a crypto and metaverse casino is that the latter allows you to create a virtual avatar that can interact socially with other players. That’s where NFTs come into play. At an NFT casino in the metaverse, players can purchase a unique NFT avatar and enjoy various casino games and other activities.

Another difference is that a metaverse casino will make you more physically involved, providing you with an immersive player experience. All you need to enjoy it is to put your VR or AR headset on, and you will be taken to the virtual world.

Last but not least, by acquiring an NFT avatar, you can gain access to various rewarding features. While owning an NFT avatar is not mandatory, if you own one, you can take advantage of certain benefits. Some NFT casinos offer ownership over virtual real estate. For instance, you can own a condominium and make a profit through renting it.

Users can benefit from NFT staking rewards, enabling them to make a passive income. Multiple other incentives, like weekly free points, free bets and lottery tickets, as well as access to exclusive VIP poker rooms and tournaments, may also be on offer.

Closing Thoughts

NFT casinos are definitely here to stay. However, it remains to be seen whether they will become a prevalent form of entertainment. Since the metaverse is considered the future of the internet, we can assume that NFT casinos in the metaverse can be the future of online gambling.

JPMorgan Chase & Co, one of the leading global financial services companies, predicts that the metaverse could infiltrate every sector in some way in years to come. The company has stated that in yearly revenues, the potential size of the market is over $1 trillion.

However, if you want to start playing at NFT casinos and invest in digital assets, you should be aware of potential scams. Therefore, check with due diligence the reputation of an NFT casino you wish to register with and keep in mind that regardless of the opportunities NFT casinos offer, gambling should be primarily about having fun!