The Metaverse Has a Top Dog: Casino Players and Operators Thrive in the Metaverse

One of the rapidly changing industries today is online gambling. From the very moment when the COVID-19 pandemic provoked lockdowns, the online gambling industry has significantly increased its level of demand, strengthened on it and continues to develop today. This is due to the trends that have emerged recently: blockchain technology, streaming and social networks, as well as gamification borrowed from video games. These trends in synthesis have become part of a new direction in iGaming - the technology of the Metaverse.

What is the essence of the Metaverse?

The technology of the Metaverse doesn’t currently have a specific definition. But its essence is that the virtual reality available to the players is constant, like a parallel world in a science fiction film. It doesn’t depend on whether the player is currently active or not active. People in the Metaverse exist as avatars that interact with other people (also the avatars) in the game, as well as buy virtual objects that have a certain value for the game process, and then exchange them (‘delegate’).

The Metaverse is essentially a single virtual community where people can interact in the same way as in real life - relax together, work together, make business deals, etc. The concept of the Metaverse is that it is not a single virtual world, but many separate worlds, united by the possibility for people to expand their social interactions.

You might think that the virtual reality of the Metaverse is only available to those who own VR headsets in real life. But in fact, the Metaverse is available to those who have a PC, a smartphone, or a game console. One of the large-scale ideas of the Metaverse is to unite players, when virtual worlds will exist not in isolation, but in synthesis, and gamblers will be able to transfer items from platform to platform. The enormity of the project is impressive, but at this stage it is more of an ambitious plan than a real strategy. But modern statistics give stability to these ambitions. According to Precedence Research, the global market of the Metaverse was $68.49 billion in 2022 and will be $1.3 trillion by 2030, growing at over 44% annually.

As mentioned above, one of the iGaming trends, namely blockchain technology, has influenced the formation of the Metaverse in the field of online casinos. But before we study in detail the connection between the Metaverse and the blockchain, we need to talk about the ‘paths’ that the blockchain has ‘trodden’ in order for the Metaverse to seamlessly integrate into the online gambling industry.

What are the benefits of blockchain for online casinos?

It is thanks to blockchain and digital currencies that online casinos have solved several popular problems that arise in traditional online casinos. We are talking about the withdrawal of funds from the game account, the security of the game account and personal data of the players, as well as the function of Provably Fair. Let's consider each of the points in detail.

Blockchain and financial transactions

Blockchain technology is the protocol on which cryptocurrencies are created. Blockchain allows online casinos to create a payment system where transactions, both deposit and withdrawal, are very fast and with minimal commissions. This is because cryptocurrencies are decentralized and there is no need to pay an intermediary - a central authority that usually controls the transactions of fiat currencies. In addition, playing with cryptocurrencies allows gamblers to avoid situations inherent in playing with fiat currency: when a central authority can restrict a player’s access to their account or restrict their account.

Blockchain and player’s asset protection

Blockchain technology will allow users to independently store personal data and fully control its transfer to someone, so that the need to blindly trust corporations to keep data will simply disappear. Simultaneously, personal information is going to be stored under protection provided by cryptographic encryption methods. The very architecture of distributed databases creates an ideal combination of data transparency, immutability, and decentralization. Blockchain-based crypto casinos don’t require KYC procedures from players, unlike traditional casinos, which allows players to remain completely anonymous when registering.

Blockchain and Provably Fair feature

The Provably Fair feature is becoming more and more popular for online casino games. This is an algorithm that was developed and first implemented by the game provider BGaming. It is based on a cryptographic method and uses the advantages of the blockchain so that every action in the game (spinning the drum in a slot, throwing a ball in a roulette, etc.) is as random as possible.

Crypto casinos that use Provably Fair games send the player an encrypted key with the generated results, created using a special algorithm code, when announcing the results of the game. That is, the result of each round is calculated before the player makes a bet, and everything else is calculated after, so that the player has proof that the game is bet-independent and transparent.

How is the Metaverse related to blockchain?

Casinos in the Metaverse usually work with cryptocurrencies (and here you can’t do without blockchain). In other words, players cannot bet in fiat currency, they need to set up a crypto wallet, buy digital currency on a crypto exchange for fiat funds. Some experts recommend so-called "hot" wallets in order to play in Metaverse casinos.

These wallets have a permanent connection to the internet. They are mobile, desktop or can work directly from the browser. They allow you to instantly buy or sell coins and tokens without the need for additional settings. ‘Hot’ wallets are usually used for fast transactions with small amounts of crypto. After all this, you need to choose a Metaverse casino where you can use your cryptocurrency.

Once in the Metaverse casino, the user can explore the virtual space of the casino through their avatar and VR technology. To make the experience of gamblers in a virtual casino resemble the real casino experience, users are given the opportunity to control the behavior of their avatar, as well as their own behavior in reality.

Due to the fact that online casinos work with cryptocurrencies and not with fiat, some players may experience inconvenience, because a player who used to play traditionally enters a completely new area for themselves. The currency in the Metaverse casino is digital. We are talking not only about the already familiar bitcoins, ETH tokens, and so on, but about a specific cryptocurrency, NFT, non-fungible tokens, which are also in circulation in the Metaverse.

What is a non-fungible token?

As already written, NFT, or non-fungible token, is one of the most popular currencies in the Metaverse. In simple terms, bitcoin is a fungible token, because your bitcoin and the other player's bitcoin cost the same, in accordance with the current rate of cryptocurrencies. And the NFT is unique: two different players cannot have two identical NFTs. When NFT technology first appeared, the scope of its use concerned only certain groups of users, for example, collectors (including art collectors). NFT has become a kind of digital certificate for a certain unique object. Now, NFTs can be used to sell songs, videos, photos, book manuscripts, and more.

How is NFT used in online casinos?

There are no stakes in the traditional sense in the Metaverse casino, the game is shareware. However, in order to play in such a casino, a gambler needs to have a ‘wearable’ NFT, for example, in ICE Poker it is an accessory (glasses, a hat, etc.). The price for such wearable devices is different: there are both cheap and expensive ones. But the cheapness of devices is also relative.

For example, in the same ICE Poker, the cheapest wearable device cost 0.39 ETH not so long ago, which at the exchange rate at that time was a little over $700. Not every gambler can afford the acquisition of such tokens. Therefore, the NFT smart contact system allows player A to ‘delegate’ wearable devices to player B on the condition that they share the winnings. For the owner of a non-fungible token, this is a passive income, for a ‘tenant’ player, this is an opportunity to take part in the game without losing their money.

Player avatars are teleported to virtual halls and meet there. It’s easy to distinguish a successful gambler from a beginner: a successful gambler is wearing a lot of different-sized accessories that may not be combined with each other, just as a Viking horned helmet does not match with an elegant tie.

All NFTs in the Metaverse casino give players bonuses based on the principle of upgraded equipment parts in video games (hello, gamification! - another iGaming trend). Some NFTs bring additional multipliers or increase odds. It's really addictive!

Speaking of gamification. Getting an NFT allows players to take on different "challenges" that can be as simple as they are complex. It's like quests in video games, which can only be completed by reaching a certain level or by the fact of owning some kind of game artifact that must be obtained first.

Why are the Metaverse casinos so appealing to players?

In fact, many advantages of the Metaverse have already been described above, which takes online casinos to a new level. Basically, they all dealt with the nuances of blockchain technology. But this is not a complete list of reasons why gamblers are increasingly becoming ‘inhabitants’ of the Metaverse. So let's dive into the details.

Virtual presence of a gambler in an online casino

Modern online casinos offer a live casino feature where professional live dealers from equipped studios conduct a remote live game with online casino visitors. Such games, despite their demand among gamblers, are not available in every online casino. Perhaps the issue is the price (the operator has set other price priorities when selecting a collection of games for their online casinos), perhaps the issue is something else. But the Metaverse casino is a real virtual reality where you can go beyond the physical space and experience a high level of interaction with dealers and players.

Return of traditional game characteristics

Despite all the efforts of game providers, some games in online casinos lose out to traditional offline ones. For example, in online poker it is difficult to track the opponent's body language, so it is difficult to 'read' the game and react accordingly. In the virtual reality of the Metaverse casino, the player can observe the avatars of other players and notice how, for example, their eyes move. This means that the player is moving the mouse – perhaps hovering over a betting option and considering strategy options.

Improving the physical shape of gamblers

Many gamblers have problems with their posture due to constant sitting - bent over a smartphone or in front of a computer. Not everyone has a specially equipped workplace where you can position your body ergonomically. Thanks to the Metaverse casino, players no longer need to maintain an awkward body position. They can play sitting or standing with a straight posture, or move around, interact with the virtual world and control the avatar, making the gameplay truly exciting.

Top 3 Metaverse casinos

At the moment, most gamblers interact on the Decentraland platform, which is regulated by the non-profit organization Decentraland Foundation. Decentraland has several virtual casinos, each with its own style and range of games.

Chateau Satoshi

The deluxe virtual casino is named after Satoshi Nakamoto, who invented and created bitcoin. The halls of the casino have chic interiors in the style of France of the 1920s, works of NFT art hang on the walls of the casino with links where everyone can buy them. The three-story virtual building is not limited to gaming halls - there is a theater and a nightclub, virtual event spaces that combine art and drive. Chateau Satoshi accepts MANA and ETH cryptocurrencies, but if a gambler doesn’t want to play for real money, they can get free game tokens from dealers.

Tominoya Casino

Each Metaverse casino has its own coordinates on the ‘territories’ of the Decentraland platform. But in Tominoya, even certain game tables have their own coordinates. Entering the casino, the gambler plunges into the atmosphere of the East: cherry blossoms, Japanese laconic interior. The second difference from other Metaverse casinos is that here gamblers are met by live hosts, not digital bots.

The creators of the casino (this is Decentral Games - not to be confused with Decentraland) explain that Tominoya is hiring real part-time employees. There is also a manager who regulates the daily flow of affairs in the casino. The casino accepts ETH, MANA, as well as several other cryptocurrencies and Decentral Games own currency, DG. You can also play blackjack, poker and roulette for free using tokens issued by the casino.

Serenity Island

Each casino in Decentraland is different from the others in some way. The ‘highlight’ of Serenity Island is the location. The casino is located on the outskirts of the virtual territory, on an isolated sandy island. If a player doesn’t have a crypto wallet to play in the Metaverse casino, they can visit it as a guest in a special game mode.

An avatar is created that can communicate with other players, but cannot place bets in games. Serenity Island Casino is like Monte Carlo in miniature, located inside the castle. Roulette reigns on the first floor of the castle, blackjack can be played on the second floor, and from the upper balconies there is a picturesque view of the virtual territory with other casinos.

The casino accepts DAI, a stablecoin without volatility, and the native currencies of the Metaverse MANA (Decentraland) and DG (Decentral Games).

In conclusion

An important advantage of the Metaverse casino is ‘metamobility’. Of course, this replicates the advantage of an online casino over a brick-and-mortar traditional one. There is no game in one casino or the player wants other impressions - one click! and now the gambler ended up in another online casino. In the Metaverse, everything happens in a similar way, only it’s not just ‘switching between online casinos’, but ‘teleporting’ from one casino to another and enjoying the atmosphere of the game in 3D format.

In addition, Metaverse casino games have a more positive vibe than traditional casino games. Mathematically, the player's profit is always inferior to the House Edge. The Metaverse casino operates according to a different concept, which allows gamblers to rely not only on chance, but also on their skills. In one of their interviews, Miles Anthony, founder of Decentral Games, says: ‘Be the House’, paralleling bitcoin’s mantra of ‘Be your own bank’.