The basis of a Bitcoin boom?

Last week’s news that the Gambling Commission has added digital currencies, including Bitcoin, to its list of acceptable payment methods for licensees could kick-start a major innovation drive in the payments sphere.

The move came after an extensive review into the Commission’s Licence Conditions and Codes of Practice, following a series of consultations with licensees and industry stakeholders.

A number of amendments to the Code will require that those UK-licensed operators which choose to accept digital currencies have the correct procedures in place to ensure AML requirements are met.

All in all, it means as of 31 October 2016, online operators licensed in the UK can accept Bitcoin as a means of payment, just as they would more traditional currencies.

I would expect a number of other regulatory bodies to follow the Commission’s lead in the coming months and bring Bitcoin into the mainstream, just as is happening in the financial services industry.

This is a great opportunity for operators looking to provide a better range of payment options to customers. It could effectively kick-start a Bitcoin betting revolution, but only if operators embrace the opportunity.

Out of the shadows

Recently we’ve seen several operators try new products which are designed to make payments both quicker and easier.

There are a host of prepaid options, while other firms allow players to withdraw their winnings via a debit card which can be used on the high street.

These are all good ideas and a step in the right direction as punters look to get their hands on their winnings as quickly as they can, as they have every right to.

Deposits for users on betting sites are instant, yet withdrawals can take upwards of five working days. Some even take two days in-office to process payments.

One of the most impressive features of Bitcoin is that withdrawal times are minimal. Players that know they can access their money quickly are far more likely to deposit funds. And it also opens the door for vendors to accept smaller deposits without the hindrance of fees.

Encouraged by the possibilities created by digital currencies, we are already beginning to see a number of providers building Bitcoin infrastructures to ease the integration process.

While it was previously common for operators to convert Bitcoin to a fiat currency and back again every time a user played an online slot, there is now a wide range of Bitcoin-ready content which cuts out this step.

There are a number of challenges for Bitcoin to overcome before it can even come close to rivalling traditional currencies, and nobody is suggesting cryptocurrency as a complete replacement.

But the Commission’s move is certainly a step in the right direction, and it is time for operators to embrace greater innovation in the payments sphere, and bring in the right sort of expertise to ensure Bitcoin integrations are smooth.

After all, a punter who can get his or her hands on their cash fast is a happy punter. And we all know happy punters keep coming back.