Casino Business & Crypto
Steve Vickers, ex-commander of the Royal Hong Kong Police Force, and now the CEO of Steve Vickers & Associates, has stated that Asian casinos could become the target of Chinese regulators. That’s if a casino indulges in certain types of crypto-related activities. Mr. Vickers asserts, “Potentially from an organized crime point of view, cryptocurrencies… do afford opportunities for the avoidance of government duty.” He then brings up the “anonymity feature” of cryptocurrencies and how it could aid in making the identities of the people engaging in crypto-transactions far less traceable.
Casinos Using Crypto
First, let’s discuss how Mr. Vickers thinks cryptocurrencies can be used to bypass governmental controls. This is also pertinent when it comes to casinos because if you can dodge the government by using crypto, then casinos won’t be immune to such activities either. According to Vickers, China’s government has put forth a significant effort to curb capital outflow. By using crypto and the technology behind it, he thinks it will be pretty easy to “move” capital anywhere, without much resistance.
So, what does this have to do with a casino? Mr. Vickers explains that if a casino makes “VIP trade” the focal point of its business operations, then it could get targeted by China’s anti-corruption laws. By using the words “VIP trade”, he seems to be referring to a casino facilitating crypto-trading for its VIP customers. For now, this just seems to be a lot of speculation.
Floating Cryptocurrency Casino
Macau-based Dragon Corp announced, during the final months of 2017, that it aimed to raise $500 million through an ICO. According to the company, part of the funds raised would go into developing a floating casino in Macau. If you visit the Dragon Token website, then you will learn that the underlying theme is to bring gaming to the 21st century by creating a decentralized currency for casinos. This initiative has the potential to drive regulators wild since they’d have to frantically monitor the accounting departments of casinos worldwide.
The most popular destination for casino gamblers, Las Vegas, is certainly no stranger to cryptocurrency. The legendary Golden Gate casino, located in the area known as the “Old Strip”, started accepting bitcoins as payment as early as 2014. However, as soon as these payments are received, they are quickly converted to USD and documented in the record books as fiat transactions.
It’s no secret that bitcoin gambling has become very popular over the years. However, it has yet to hit the floors of a physical casino. Maybe this will soon become a reality the way that the crypto-market is booming and headed towards mainstream. World governments already have their hands full trying to regulate cryptocurrencies, so crypto-gambling on casino floors will surely present even more challenges to regulators. Almost every industry has started offering crypto-related services, so why should casinos not join the party?