The growing popularity of NFTs has extended into various industries, including iGaming. Non-fungible tokens are gaining traction due to their decentralized and independent nature, which enables their use anywhere and by anyone. With the ability to store information about ownership on blockchain technology, NFTs provide transparency and integrity to the gaming industry.
One of the significant advantages of NFTs is their function as in-game tokens, reward systems, and deposits for players. BC.Game, for instance, has already adopted NFTs as a deposit method. NFTs can also provide access to VIP programs with special bonuses, tournaments, and jackpots, while ensuring security by assisting in self-exclusion and blocking access for minors.
Another exciting use of NFTs is allowing players to purchase their virtual slot machines, poker tables, or even casinos in the metaverse. However, since metaverses have no gambling regulations, “casino owners” have no obligations to fulfill.
NFTs also appeal to younger generations who are interested in collecting digital assets. This trend towards spending more time and money online, according to McKinsey’s survey, has boosted the potential growth of the NFT sector. In fact, MarketsandMarkets estimates that the NFT sector will grow to over $13 billion in 2027, with an annual growth rate of 35%.
Despite the promising future of NFTs, regulations and taxation are still in the early stages of development. The European Union plans to regulate NFTs similar to cryptocurrencies out of concerns about money laundering, fraud, and the financing of terrorism. Although taxes on gains from trading cryptocurrencies are typically applied in the owner’s country of residence, the taxation for NFTs has yet to be clearly established.
The iGaming industry has already embraced NFTs, with game providers developing titles that incorporate this technology. Aviatrix, for example, features a crash game where players can purchase the in-game avatar as an NFT. With the rapid spread of cryptocurrencies as an indication of blockchain technology’s popularity and effectiveness, NFTs are expected to become commonplace in online casinos and sportsbooks.
Commenting on the developments, Ayvar Gabidullin, Business Development Manager at Slotegrator, said:
“NFTs were quickly embraced and became a popular way to spend and earn money. The iGaming industry, no stranger to innovation, saw the potential for NFTs immediately, and game providers began developing titles that incorporated the new technology. Aviatrix, for example, features a crash game where players can purchase the in-game avatar as an NFT. Ultimately, if the rapid spread of cryptocurrencies are any indication of how popular and effective blockchain technology can be, we have every reason to believe that NFTs will become commonplace for online casinos and sportsbooks.”
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