Virtual Casinos: What NFT Gambling Looks Like in the Metaverse
The rise of gambling has been acknowledged by the authorities as it has become more widely available. This has led to the establishment of more commercial gaming establishments and the number of states where it is legal. Twenty years ago, only nine states permitted such establishments. The number of internet gambling sites has also increased significantly.
The rapid emergence and growth of the online gambling industry has led to the creation of new platforms that are designed to provide remote gaming services. One of these is the metaverse casinos. People who are tech-savvy have likely heard of the term non-fungible token (NFT).
This type of digital asset is commonly referred to as metaverse gambling. In this article, we will talk about how it works and if it has a future in the interactive gaming industry.
Blockchain Tech & NFTs in Online Casinos
The initial online casinos that started using blockchain technology were first established in 2012. They were able to operate without getting regulated by any licensing bodies, and they only offered provably fair gaming options. They also accepted Bitcoin and featured few promotions.
Following the approval of Antillephone, which oversees and regulates the operations of online casinos in Curacao, several of these sites have started offering streaming table games and modern slots. These crypto casinos have also started to feature a variety of titles.
The emergence of metaverses has led to the creation of new platforms that are designed to provide remote gaming services. These virtual maps allow users to interact with other players and transact with them. These platforms, which are usually powered by Ethereum, have a fungible token that can be used to perform various functions. Some of these include the roles of money, legal tender, and non-fungible assets, such as clothing.
Due to the technological advancements that have occurred in the gaming industry, many companies and individuals have started to operate virtual gambling sites.
What is Metaverse Casino Gaming?
Currently, there are only a couple of virtual casinos operating on the metaverse. One of these is Decentraland, which is known for its popular card game known as ICE Poker. In 2021, it launched a new platform that requires users to buy or delegate a wearable NFT to start their gaming experience.
The daily chips that players receive are based on the number of NFTs that they have. They are then used to fulfill various tasks, and those that rank high on the leaderboard receive additional rewards.
Another gaming establishment that is popular in Decentraland is known as the Tominoya Casino. It is a Japanese-themed facility that features a variety of games, such as poker and blackjack. It is also supported by Decentraland's native token, which is known as MANA.
Another Ethereum-based gaming platform is known as The Sandbox. It allows users to gamble online. It's also believed that Somnium Space users will soon try its services.
What's the Future Hold for Casinos?
For those who are unaware of the term Web3, it's a phrase used to describe the evolution of the internet. It features concepts such as decentralization and token-based economics.
If an individual is in a country that has strict gambling laws, they shouldn't expect to be able to use their metaverse winnings to turn their money into real money. Also, they shouldn't gamble at offshore casinos that offer untaxed gaming profits.
When converting digital coins into fiat money, the person who holds them must report the source of funds. Once this happens, the money is placed in their bank account and must be categorized. Those who claim that they are income from gambling must then pay taxes on it.
When it came to operating its online poker game, Decentraland decided to use a play-to-win system instead of a traditional gambling platform.
The future of NFT and Web3 gambling relies on the regulations surrounding crypto and gambling. Due to the unpredictable nature of these laws, it's not always possible to predict exactly how they'll affect the industry.
How Are NFT Casinos Regulated?
In 2016, the UKGC allowed cryptos to be used as a type of fiat money. Unfortunately, not many British-based companies have taken advantage of this feature. In the US, there are no state regulations regarding cryptocurrency trading. Also, state gaming regulators do not allow Bitcoin and altcoins to be used as a part of their licensed sites.
There are no regulations regarding NFT casinos. Only a few international regulators monitor and license crypto casinos. For instance, Malta's Gaming Authority has been debating the issue of allowing virtual money on its licensed platforms for a long time. That's something that the four master license holders of Curacao have been advocating for.
The UKGC has a database known as GamStop that every gambling platform in the country uses. This allows them to prevent their players from signing up with other British operators. If a user activates their self-exclusion through this system, they will not be able to use any other platform until their ban expires.
Non-GamStop casinos are those that accept UK players. These sites do not participate in the scheme and therefore, are mainly crypto-based. Hence, they allow British residents to gamble at their offshore casinos.
The potential of virtual casinos is immense, as they offer a unique gaming experience that's not available in the traditional market. However, the path to success for this type of gaming platform is still unclear. Due to the lack of regulation, it's not possible to predict exactly how this genre will perform in the future.