The new platform offered by licensed gambling operator Cozy Games can deliver bitcoin, litecoin and dogecoin payments.
Bitcoin gambling has been around for a while, but recently it has taken a key step towards going mainstream. Cryptocurrency payment processor GoCoin and software developer Cozy Games have partnered up to offer players the first ever regulated platform for bitcoin gambling sites.
Recent changes in licensing and taxation policies across Europe have forced online casino operators to get creative and look for alternative payment options. For those looking to cut costs, digital currencies could be the perfect solution, as they can help gambling platforms improve their margins.
GoCoin and Cozy Games have worked together to offer a new and efficient product for companies that want to do exactly that.
A cost-effective alternative
Cozy Games Management Limited is licensed in Isle of Man. As a software provider targeting gambling companies worldwide, including those in the UK, its business was affected by the recent changes in British gambling laws.
According to GoCoin, the new platform will allow Cozy Games to make “a dramatic reduction” in transaction costs, as well as in charge-backs and cross-border fees. Furthermore, the platform can process transactions using digital currency for worldwide operators that have been flagged as “high risk” by traditional payment companies.
Steve Beauregard, co-founder and CEO of GoCoin said in a statement: “By accepting cryptocurrencies through the GoCoin payment platform, regulated online gambling operators can engage new markets like the underbanked that are historically difficult to reach.”
Now that the first step has been taken, the company is moving forward in a new direction, trying to open the door for bitcoin gambling across the world. GoCoin is now working with gambling regulators to come up with clear guidelines that will help licensed operators guarantee player privacy without breaking any laws.
It remains to be seen how gaming authorities respond to this revolutionary idea, considering that so far they’ve been reluctant to embracing digital currencies.
Safe transactions, even with bitcoins
When it comes to handling bitcoins, companies are often concerned about security measures and the volatility of this alternative currency. And you have to admit it can all sound too complicated. But GoCoin stressed that potential clients have nothing to worry about.
Companies that opt for the new platform will be happy to know they are completely protected against the potential problems created by the volatility of digital currency, because merchants are allowed to settle transactions in whatever currency they choose. All risks that come with using bitcoins are basically outsourced to GoCoin.
The cryptocurrency payment processor applies a set of procedures called Know Your Customer (KYC), which allows those operating the platform to identify customers while at the same time guaranteeing their privacy.
Sreeram Reddy, chief executive officer at Cozy Games, explained: “GoCoin’s solution is adaptable and compliant with Internet gaming law, allowing us to safely adopt the latest payment innovations while focusing on our core strength of delivering an excellent online experience for our players.”
Bitcoin, the perfect currency for gambling
At the moment, Cozy Games has a portfolio of more than 90 titles. While it cannot compete with major online and mobile casino game providers like Microgaming or Net Entertainment, it is the first licensed software provider that offers games in bitcoins and this is a great advantage.
Most gambling sites that offer digital currency as a payment option are quite small, but Cozy Games will allow players to choose from a larger selection of games. The gambling operator has another advantage: it was founded in 2005, so it brings almost a decade of experience to the table. And throughout the past years, Cozy Games has already built an extensive user base.
Surely, the inventor of bitcoins didn’t intend to create this digital currency for gambling. But over the past years cryptocurrency has become more popular and about half of all transactions are used on gambling sites. But people usually spend small amounts on games of chance, which account for just 5% of the total estimated transaction value.
The idea of gambling with bitcoins is nothing new. There is huge demand for it, but there are also legal issues to consider, mostly that a number of users opt for bitcoins simply because the gambling laws in their country don’t allow them to play for real money.
A pioneer in the bitcoin gambling industry, SatoshiDice has become extremely popular in a relatively short period of time. The website was created by Eric Voorhees and has helped open the door for a number of other similar websites, including Seals with Clubs, SatoshiBet and Cloudbet.
While these services are very popular, they have the disadvantage that they are not licensed by a gambling regulator. Well Cozy Games is. And it looks very promising.