Are NFTs the Future of Gambling
Finding an excellent online casino with a reliable payment method can be an uphill task. Luckily, several UPI casinos offer speedy and secure money transfers and deposits from a bank to another player using third-party providers
That said, a new player has hit the industry, threatening to overturn the entire casino payments industry–NFTs. They are increasingly becoming popular as a prize in casinos as gambling enthusiasts are progressively becoming crypto-art collectors.
NFTs market researcher non-fungible.com reported that NFTs assets grew to more than $338 million in 2020, up from $40.9 million in 2018. Since the assimilation of blockchain into the gambling industry is surging, it was inevitable NFTs would make an appearance.
Keep reading to learn more about the future of NFTs in the gambling business.
What are NFTs
Non-fungible tokens (NFTs) are digital assets that connect ownership of that item to a person. In short, you can’t interchange the ownership of the digital asset, such as music, videos, or pictures, as the owner’s information gets stored in an unchangeable data ledger known as a blockchain.
That’s the same technology that powers cryptocurrencies like Bitcoin, except NFTs aren’t a currency. Just like cryptos, they only exist as digital assets. There are different NFTs, including artwork, memes, events tickets, and videos of significant sporting moments.
How NFTs Entered the Gambling World
NFTs have been around since 2015. After experiencing significant growth during its formative years, the NFT market dropped severely in June 2021, only to rebound in August.
While NFTs are commonly known for their use in the art world, there is a developing interest in their usage in gambling. One of the big hitters in the gaming industry, Evolution Gaming, launched the NFT CryptoRunks as prizes on their NFT Megaways slot game.
Evolution announced the incorporation on 9th September 2021, the first casino gaming company to integrate the four NFTs in the world’s first NFT-based slot. But does that mean the industry is about to shift towards NFT usage?
Do NFTs Have a Future in Gambling
JP Morgan Chase estimates the NFT market’s value at more than $7 billion. With the sale of CryptoPunk #9998 for an estimated $532 million, it’s easy to see NFTs appeal to the gambling industry.
While gambling with digital assets has been around, we’ve only recently started to see its integration.
Electronic Arts CEO has stated that the future of NFTs in gaming lies in play-to-earn, which most industry players are working out how to implement. The company even advertised a senior director position in charge of strategic growth for NFTs and blockchain.
Axie Infinity paved the way for NFT games, where players can earn money by minting NFTS and selling them to other players.
Another way the industry could integrate NFTs is through sports card collectibles, which already have a ready market in physical cards.
The rise of the metaverse looks so nailed on, it convinced Facebook to change its name to Meta. They are not alone, as there are plenty of luxury brands taking the leap.
The metaverse refers to a virtual world with a striking resemblance to the physical world. One hawk-eyed company saw the opportunity and plans to host a virtual casino. GamblingApes will provide winnings such as NFTs and ownership of the casino itself.
Incorporating NFTs will eliminate the need for a third-party payment provider and provide unique betting features for players.
One of the great things about NFT prizes is they can gain value over time. For instance, the digital art for NBA Top Shot has seen multiple sales rake in $780 million from March 2021.
Benefits of NFTs on Gambling
(i) Ownership
NFTs help tie ownership to a single owner since they are on a blockchain network. The ownership benefits shield the client against competing claims.
(ii) Authenticity
All NFTs are unique, with no chance of creating a copy, which provides their potential to increase in value. Simultaneously, the NFT generators have the advantage of giving it a specific number to introduce scarcity of supply. NFTs are immune to modification, removal, or replacement.
(iii) Transferability
Trading NFTs is simple since certain platforms offer various trading alternatives. Game developers may design NFTs for in-game goods that players can store in their digital wallets. Players can even sell or utilize in-game items outside the game. Ownership transfer is simple as well since NFTs rely on smart contracts.
(iv) Artists get value
NFTs bring together content providers from varied fields. The creators can get the actual value of their creation and interact with their customers directly.
Bottom-line
NFTs are becoming a fixture, and casinos don’t want to miss out on the trend. The most conceivable way future integration of NFTs usage seems pay-to-win, with a chance it will make its way to the metaverse.
There are different types of NFTs, including memes and domain names, which gamblers hope to add to their wallets as they offer a rich promise of value growth.
