The online casino industry is booming, and the continued use of cryptocurrency to gamble has changed how people play games. People no longer have to play online casino games without knowing the ‘true’ outcome. Thanks to Blockchain technology, software companies can now develop provably fair games. The technology allows you to authenticate the result of a game without relying on the casino. As such, you are assured of a fair and transparent gaming session.
In this brief guide, you will discover all the information you need regarding licensing Bitcoin games. Read about the importance of licensing the games and the process involved. Moreover, you will discover some of the best licensing bodies and independent third-party auditing companies in the iGaming industry.
Why is it important to license Bitcoin games?
Offering Bitcoin games without a license might seem like an attractive and fast way to make money. However, it comes with many drawbacks and risks. Serious software providers know the importance of licensing their games, which include:
- It gives players comfort that the games have been audited for fairness and accuracy.
- In addition to fairness and accuracy, players are assured of a safe and secure gaming experience.
- Players are also assured of receiving their payouts once they win.
- Top-rated online casinos such as 7 Slot giriş will only incorporate games from companies that offer games that are licensed and regulated.
Running a software development company without a license will have severe consequences, not only for the business but also for the individuals behind the games. It can lead to civil lawsuits, ineligibility for future licensing, and legal penalties, among other things.
The process of licensing Bitcoin games
Depending on the gambling jurisdiction, obtaining a license for Bitcoin games can be gruelling and cumbersome. It’s understandable. Licensing bodies have been trusted by operators and players to ensure only fair games are available in the market. Therefore, to award a license, the following criteria or factors have to be satisfied:
Financial stability
The software company must prove they are financially stable enough to operate and run the game. This process involves submitting bank statements, audited financial statements, and business plans to highlight the company’s financial muscle.
Run a background check
The licensing body will shuffle through the company’s history. This includes running background checks on executives and key stakeholders involved. This is done to ensure the key parties don’t have past criminal records.
Player protection measures
The company must prove beyond reasonable doubt that they have stringent measures to protect the player’s safety and security. The application should outline the measures to safeguard against fraud and ensure player’s data is safe. Moreover, it should include what features have been included to enhance responsible gambling among players.
Fair gaming practices
The biggest selling point of cryptocurrency games is their ability to allow players to verify or check for the authenticity of the outcome. However, this doesn’t automatically mean software companies are awarded a license for developing provably fair games.
On the contrary, they must demonstrate fairness in their games. In addition to showing that the RNG software is functioning properly, software companies must also provide clear data about payouts and odds.
Technical requirements
This mostly focuses on aspects such as encrypted data transmission and safeguards put in place to prevent cyberattacks and hacking.
Fees and taxation
Tax obligations and licensing fees vary greatly. Therefore, the software company must have a detailed report showing how they will handle the liabilities.
Conclusion
Software companies that prioritize licensing their Bitcoin games show their commitment to offering bettors a fair, safe, and responsible gambling experience. They get licenses from respectable bodies such as the UK Gambling Commission, the Malta Gaming Authority, the Government of Curacao, among many others. It doesn’t stop at this; they ensure audits are carried out on their games. These are conducted by independent third-party organizations such as eCOGRA, TST, iTech Labs, and many more.
