Online Gambling and Digital Currency a Marriage Bound to Happen
Last week, Gambling911.com reported on the potential for digital currencies such as BitCoin to begin flourishing in a space desperate for a revitalized payment system, online gambling. The sector has come under attack in recent years as the US Justice Department cracks down on payment processors willing to conduct business with Web gambling firms.
Gambling911.com had an opportunity this week to sit down with DigiBookie.com President and Head Bookmaker William Lattimore to discuss the concept of using digital anonymous currency as a means of funding online sports betting and poker accounts. His company already offers the option for sports and financial betting.
Digibookie.com has long operated in conjunction with another major establishment and currently utilizes the PinnacleSports.com lines while catering to US citizens and those throughout the world.
If there is a book out entitled “Digital Currencies for Dummies”, the folks here at Gambling911.com want a copy. We suspect many people besides us would want a copy.
“There is no doubt that there is a learning curve for using and feeling comfortable with Bitcoin,” Lattimore admits. “However, the advantages are such that people are taking the time to learn. Its one of those things that takes a while to fully integrate into your life, but once you do, it’s a snap.”
Lattimer points to Mtgox.com, the major exchanger.
“With an exchange like MtGox.com it is quite seamless to move (currency) in and out of Bitcoin. We also have Liberty Reserve, Perfect money and Pacunix. These currencies are much easier to use and are tied to Dollars and Gold (in Pecunix case). The key is privacy, anonymity, and ease of deposits and payouts.”
As one might suspect, this type of currency appeals to a younger player base much like how eChecks in online gambling gained trust first among the 20-somethings.
“There is definitely a skew toward 25-35 year olds who are tech savvy,” Lattimer noted. “However, with all of the exchangers around, if you can use Western Union, Moneygram or a bank wire, you can easily fund these currencies. I like to compare the currencies to chips at a casino.
“If a player has no clue what to do, we can call them directly to walk them through the entire process. We have two marketing executives just for this purpose.”
Lattimer believes the online gambling industry will have no other choice but to turn to digital currency.
“The industry will have to go this route eventually. My belief is that once the FEDS finish seizing domains and threatening books like The Greek to leave the US market, they will start looking at players’ Bank Wires and Money Transfer (WU & MG) activity. Can you say tax evasion?........ Very scary!”
- Chris Costigan, Gambling911.com publisher
