The Peculiarities of Using Cryptocurrencies in the Gambling Business. CEO at CoinsPaid Max Krupyshev in the UGW Insider Podcast
The new episode of UGW Insider podcast welcomed its guest – Max Krupyshev, CEO at CoinsPaid that develops services for convenient payment with cryptocurrencies. The interview was traditionally conducted by Lavrentiy Gubin, Brand Ambassador of Ukrainian Gaming Week 2021.
As part of the podcast, Max spoke about the methods of accepting cryptocurrencies at online gambling platforms and explained how the mechanism for performing such financial transactions is implemented. He presented an overview of a wallet designed for crypto payments on the Internet and clarified what are the advantages of using digital currencies in the gambling field.
Read more about the use of cryptocurrencies in the gambling industry in the interview below.
The interviewer: Lavrentiy Gubin (L.G.)
The respondent: Max Krupyshev (M.K.)
L.G.: Since we are talking mainly about the gambling business, I’d like to look into the possibility of using cryptocurrency for payments in the gambling segment. In general, can you tell us what opportunities are opening up here for gambling business operators?
M.K.: Yes, cryptoprocessing.com is now a leader in accepting cryptocurrencies. Last year, it was mainly related to the gambling business. In the previous year, we accepted 1 billion euro with high-risk clients, mainly gaming.
And in 2021 we have already accepted more than a billion euro. Thus, the growth is evident. Now to the question. We all know, especially in the CIS, that the gambling business is constantly oppressed by payment methods – it has never been easy to work with them.
If you are in high-risk business. And now it gets even more difficult. Plus, we see that, in general, everyone is now talking more about cryptocurrency and this suggests that there are more people in cryptocurrency.
Thus, accepting cryptocurrency as a payment method, or as a gaming currency, which we may still have time to talk about, is an alternative way of not depending on anyone to accept payments.
And the second tool. Actually, you open your brand to a fairly large group of people: fans of decentralized systems, cryptocurrencies, investors, small and midsize.
So that they can try. And how else can you actually pay with cryptocurrency for anything.
Here I would also briefly mention that if we really think about the portrait of a player who uses cryptocurrency, we will understand that it is in many ways a gambling person.
Because the crypto market and trading, any investment in cryptocurrency is still a high risk, but also a possibly of high winnings.
I just want to draw your attention to the fact that there is a lot in common, and for good reason, betting on sports, casino and forex tend to go side by side.
Cryptocurrency is very close to Forex. That is, these people are already gambling, therefore, there is synergy here. But it is cheaper, accepting cryptocurrency is generally cheaper than Skrill, Visa, Mastercard – everything that you are used to, depending on the region where your gambling business is.
L.G.: How is the volatility issue resolved? It seems to me that this is one of the stumbling blocks.
M.K.: Yes, unfortunately, there is an opinion that this is one of the stumbling blocks. Although, in fact, this is not at all the case. I still can't figure out where this belief comes from.
In fact, it works ... There are two scenarios, two principal ways of accepting cryptocurrency at a casino. It is either just a payment method or a payment method plus the balance currency.
That, in fact, will be used for playing games and betting on sports, and so on in the future. Thus, using cryptocurrency as a game currency is still quite exotic.
But there is basically no risk of volatility, right? Because the client gets, for example, bitcoins, and consequently, makes bets with bitcoins. And now you have bitcoins that you accepted from the player.
And you owe bitcoin to the player – to some extent the issue of volatility is absent. But, on the other hand, if we are talking about sports betting, then it is quite difficult to stick to the cryptocurrency here.
If there is some event in two weeks, but it is not clear what will happen with this bet regarding its volume in relation to the dollar. On the one hand, it is easy, on the other hand, it does not work with sports betting.
It works amazingly with a casino. If we are talking about accepting cryptocurrency as a payment method, let's say the euro balance, hryvnia, ruble, or whatever ...
Here, as a rule, any provider, large, serious, clear one, with whom you can work – has an auto-exchange tool at place. Basically, it's just a payment method.
If a player, for example, sends you one ether to replenish his dollar balance, then as soon as we see this ether, Ethereum, I'm talking about Ethereum ...
As soon as we see it on the blockchain, we will immediately exchange it for three and a half dollars, and send a callback that a certain user wants to "deposit" three and a half thousand dollars for you.
You immediately know what amount it is in dollars, and we immediately exchange it for you and put these dollars on the balance. generally, there is no exchange rate risk.
Because we immediately change and inform you about the amount that you already have on our balance. Talking about the withdrawals, the same thing happens. Let's say players wants to withdraw into Litecoin from their dollar balance.
They say, “I want to withdraw $200 in Litecoin.” And we take 200 dollars from you, exchange it into Litecoin and send to the address that the client entered on your website.
Here again we are operating in dollars. As with a deposit, we tell you how many dollars are there, same with withdrawal, we tell you how many dollars are there.
In such a way, we can work with hryvnia, with ruble and with 40 more popular currencies.
Join the Telegram chatto communicate with the leaders of the global gambling market and talk to industry professionals in a convenient format! To accept
L.G.: Do you have an easy-to-use tool that could be ... Some kind of wallet, or some kind of app that could be offered to inexperienced users who know little about computers, so that everything is easy and understandable for them?
M.K.: Yes, this is a very good question. Of course, many businesses are working in this direction, and this really makes sense: create something simple for an inexperienced person who does not want to get into this deeply.
We are actually completing the development of the wallet. It’s even in beta already. There are several payment methods, this is the coinspaid.com wallet – you can create an account there.
In the usual way, similar to all online banks or any resources. Here we remove all complex details or anything unusual, so a person creates an account, clicks on the verification button.
And then uploads the documents like at any other financial institution. We try to follow what is already familiar to the client.
Then a user sees a quite simple interface with buttons like “Buy”, “Sell” and “Make a deposit”. Here we make it as easy as possible, we try to simplify it.
By creating a mobile application for this. Although, if we are talking about the older population, then maybe the mobile app will not work for them.
In general, this is an attempt to do something very simple, something very understandable. And what I still see here as a big plus is that our wallet is really connected with processing.
And, in fact, users of this wallet will be able to pay all our business clients absolutely instantly and free of charge.
And we are already developing tools where a casino will be able to withdraw money from this wallet by subscription, if the user has given a permission for that. Like Paypal, you can just pay once ...
Link your account, allow monthly withdrawals, and there you have it –withdrawals by subscription. I think that such recurring payments may not be quite usual for gambling.
But, let's say, if a client runs out of balance, especially if we are talking about a client who is older, and who, perhaps, is not very familiar with these wallets.
Then, right on the casino page, they will be asked a question: would you like to deposit 20 euro. If they click on “Yes” button, the cryptocurrency will be automatically transferred from their wallet within the limits that they approved.
We have already developed this technology, we are now at the stage of integration with several clients. So far, I’m not talking about large volumes with this technology yet.
But we believe that it will work for many operators, their clients. Especially if they find it difficult to understand cryptocurrency themselves, or they want to enjoy the fact that payments are done instantly.
And most importantly, it’s free. Because, as we know, Bitcoin and Ethereum networks are quite expensive. Even if a client sends bitcoins from our wallet to one of our clients, it will still be free and instant.
That is, there will be no need to wait for any confirmations with the blockchain, or pay a fee for these transactions.
Don’t miss new episodes of the podcast with Ukrainian and foreign experts, follow the news on the website and our pages in social networks >>>