Clicky

Restoring Trust in Online Poker using Blockchain Technology - PennsylvaniaCasinos.com News : PennsylvaniaCasinos.com News
  • 75 views
  • 3 minutes read
ethereum-blockchain
Published on
Update on

Breach of trust has always been a critical concern for players when it comes to online poker operators. The first ever breach dates to as far back as 2001 when PokerSpot, one of the pioneering online poker sites shut down abruptly taking $400,000 worth of player deposits with it. However, the true wakeup call came in 2011 when customers of Full Tilt Poker learned that $360 million in player funds had disappeared. This was shortly after the United States Department of Justice decided to shut down all the major poker sites in the country on April 15, 2011.

In essence, online poker sites can be considered to be banks of some sorts with players depositing money in the belief that their funds are safe. The players trust the online poker sites to process withdrawals and send their funds if they win. Since players cannot rely on government-backed failsafe systems such as the Federal Deposit Insurance Corporation, they have no option but to act on faith and in retrospective, they have more than enough incentives to question that faith.

The Blockchain Revolution

Blockchain technology has proven time and time again that it is here to stay and this is not just because they are the backbone of decentralized digital currencies but also because it has the potential for a wide array of applications across different fields. The basic concept of how a blockchain operates is quite easy to comprehend – it is basically a ledger of transactions. What makes this so special is the fact that is made public with multiple copies, that is, transactions in a blockchain do not involve a centralized third party. Now that we know what it is, how does it help the online poker industry?

Well, the idea of using blockchain on online poker sites involves the utilization of smart contracts instead of depositing money on an online poker site. This way, the players keep control of their own wallets. Smart contracts essentially hold your funds in escrow instead of having your money deposited to a server on any third party – funds move directly between players in a peer-to-peer network.

As such, if you lose in a poker game, the smart contract will distribute your money to the winners, but if you win the smart contract moves the winnings into your wallet. In addition to this, smart contracts have the same properties as other blockchain transactions which means that they are audited by every member of the network. Now, that is something that is worth having faith in.

Already, a number of online poker sites are using blockchain technology to power their operations it has paid off quite well so far as players are interested in finding something that assures the safety of their funds. A great example is Virtue Poker, a poker operator that was born from the blockchain production studio ConsenSys. Virtue Poker is a blockchain-based online poker platform built on Ethereum and it utilizes smart contracts.

Editor's Picks

SugarHouse Casino to Rebrand in the Fall

Philadelphia’s Sugar House Casino is soon set to rebrand as part of a series of upgrades that Rush Street Gaming, the property’s owner, has planned. This fall, the gaming and entertainment complex will officially change its name to Rivers Casino Philadelphia. As it turns out, these changes have been part of the company’s plans for […]

PGCB Approves Penn National’s Hollywood Casino in Morgantown

On Wednesday, June 12, Penn National Gaming Inc. undertook one of the very last steps in winning the approval of the Pennsylvania Gaming Control Board for its plans to construct and operate a satellite casino in Berks County. During the hearing, the company showcased detailed plans for the proposed Hollywood Casinos Morgantown. The company’s plans […]

Pennsylvania Slot Machine Revenue Goes Up 2.7 Percent in May

Last month, the Keystone States 12 licensed and regulated casino operators managed to generate a whopping $209.6 million in combined gross revenue from slot machine gaming – this is a 2.7 percent year-on-year increase according to the figures that were released by the Pennsylvania Gaming Control Board on Tuesday, June 4. The gaming control board’s […]

Similar Stories in Gambling

Online Sports Betting Finally Arrives in Pennsylvania

It has been a long time coming but Pennsylvanian sports betting fans are now going to be able to place bets online. This news came on Tuesday, May 28 when the Pennsylvania Gaming Control Board gave Philadelphia’s SugarHouse Casino the green light to launch its online sports betting offering making is the very first casino […]

Pa. Casinos Post Record Gaming Revenues in March

The Keystone State’s 12 licensed casino operators have recently set a brand-new all-time high record for gambling winnings in a single month. According to the revenue figures that were released by the Pennsylvania Gaming Control Board last Monday, the casinos managed to rake in whopping $309.1 million from slot machines and table games – the […]

Pa. Online Casino and Online Poker to Go Live on July 15

Finally! The Keystone State’s online gaming and online poker industries are set to officially kick off operations in July. This has been confirmed by a letter from Kevin O’Toole, the Executive Director of the Pennsylvania Gaming Control Board (PGCB) which was addressed the state’s 13 licensed casino operators and stated that interactive gaming will be […]

New Jersey Casino Revenue Balloons to Record High in March

According to recently released revenue reports for the state of New Jersey, casino gaming revenue increased by more than 25 percent in March – this makes it the 10th straight month of revenue growth for the state’s gambling industry. This double-digit monthly increases in the state’s gaming revenue seemingly began in June last year when […]