Ethereum gambling is a rapidly growing industry thanks to the growing popularity of the Ethereum blockchain. The reason for Ethereum’s rise to fame is a result of the “smart contracts” which the blockchain enables – creating what is known as the Ethereum Virtual Machine (EVM). These smart contracts are showing signs of disrupting the online gaming market as they remove the need for trust between the player and the casino.
Ethereum has also earned its popularity as an alternative payment currency to Bitcoin. Both of these cryptoassets provide similar benefits in terms of security and anonymity, however it is currently possible to deposit and withdraw Ether in much shorter time frames. Those looking for a “faster Bitcoin” would do well to use Ether as their currency of choice.
The smart contract technology (explained further below), as well as its benefits as a cryptocurrency, combine to create the perfect deposit and withdrawal method for many players and casinos.
Ethereum is a cryptocurrency like Bitcoin, which allows for fast, international and anonymous payments. For this reason it has become a currency of choice for many gamblers, and a number of online casinos now accept Ether for deposits and withdrawals. The following list of Ethereum casinos are our pick of the best in the industry. Deposit and grab a bonus at the best Ethereum gambling sites below!
Gambling with Ether comes in two different forms. The first, and currently the most common, is the ability to use Ether as a deposit and withdrawal method at various online casinos. This works in the same way to Bitcoin, and provides an alternative payment method to traditional fiat currency (USD, EUR, GBP) transactions. This side to Ethereum gambling is the easiest to understand and most popular. Our list of the best Ether casinos above supports this method of gambling with the cryptoasset.
The second approach to Ethereum gambling is the use of smart contracts to place bets. Currently, there are a number of casinos which operate entirely on the Ethereum blockchain. Instead of sending Ether to your casino’s wallet address, you send the ETH directly to a smart contract. From this point, the smart contract generates randomness and pays out based on whether the player wins or loses. Some advantages to smart contract betting in Ethereum are:
Currently the only major downside to gambling with an Ethereum smart contract casino is that each bet takes time to process. Due to technical reasons surrounding the security of the blockchain, each bet will require at least 1 block confirmation (roughly 15 seconds) before the winning bet can be decided. For larger bets, it is possible that the wager can only be processed after several block confirmations, which could take many minutes. Gambling with Ether in this way would put off many players who are happy to place their trust with a traditional casino in return for faster betting.
However, the problem of waiting for block confirmations is slowly being resolved. Casino protocols like FunFair.io are developing “offchain” payment channels to handle bets without requiring a block confirmation for each bet. These payment channels take the strain off of the blockchain without significantly compromising security. As a result, the promise of smart contract betting is becoming ever more likely to reach a mainstream audience in the years to come.
Currently, these payment channels are not available, and the smart contract casinos listed below will require block confirmations. That said, this is still the most secure way to bet at an online casino – all thanks to the Ethereum Virtual Machine.
Smart contract casinos are still very prototypical, however they are fully functional and are in operation today. You can expect the number of smart contract gambling sites to increase dramatically in the years to come. The Ethereum smart contract gambling sites that provide the best user experience and feature the best games will be listed below. Check back in the future to find more “onchain” casinos – the safest places to bet online!
When it comes to casinos, Ethereum and Bitcoin provide very similar benefits. They are anonymous, fast and secure – the perfect deposit and withdrawal method for any gambler. For those who are looking to make deposits and withdrawals in cryptocurrency, there’s no major advantage of choosing one over the other. That said, there are a few smaller differences which you may wish to consider.
All cryptocurrencies are volatile, but the most stable of these is Bitcoin. This helps to make it a better currency to gamble with, as its unlikely the price will change dramatically between bets. Some casinos will convert Ether and Bitcoin deposits to “chips”, converting them back into Ether or Bitcoin on withdrawal – this can be misleading as the value of each chip could change wildly during your time gambling.
Ethereum does not (yet) suffer from the same scaling issues that have halted Bitcoin. This means that transactions process faster, often completing in under a minute. The same cannot be said for Bitcoin, where deposits and withdrawals can take hours to arrive.
As mentioned, Ethereum provides the ability to interact with smart contracts. From a gambling point of view, this is a major boon, as it removes the need for trust between casino and player. Bitcoin is expected to also receive smart contract functionality in the form of an offchain protocol called Rootstock. However, it is not yet known when a casino will be production ready on this platform.
There many other technical differences between Ethereum and Bitcoin, but for gamblers the only differences that really matter are the ones above.
Ethereum’s blockchain is secured by an enormous amount of “hash power”. Hash power is a term used to describe the amount of energy miners are putting into validating and processing transactions. The more (distributed) hash power placed on a blockchain, the harder it is for one individual, company, institution or government to overpower the network and “rewrite” transactions. Bitcoin is currently the most secure blockchain (has the most hash power), however Ethereum is not far behind, and for all intents and purposes, the security of both is extremely good.
The only risk you should consider when using Ether to deposit at a casino is the same risk that you should consider when dealing with US Dollars or any other currency – is the casino trustworthy? The Ethereum casino reviews on this page should help you to decide!
Depositing at a casino with Ether is almost identical to Bitcoin. Players purchase Ether from an online exchange like Coinbase.com, and then make a transaction from their Coinbase wallet to their casino’s Ethereum wallet. There are a few key points to note when making a casino deposit with Ether:
Do not send an Ethereum transaction to a Bitcoin wallet – this will not process and may potentially be lost. A simple way to see if a wallet is an Ethereum wallet, is to see whether the first 2 characters of the address start with “0x”.
Most casinos will display your deposit as soon as the transaction is broadcast. However, some others may require several confirmations (as many as 30) before crediting your account. Each confirmation takes an average of 15 seconds, so be sure to check your casino’s terms before panicking that an Ether deposit has not yet arrived!
As with any cryptocurrency transaction, there is no “chargeback” function. If your Ether is sent to the wrong wallet address then it could be lost forever. Remember to check and double check which wallet you’re paying before making a casino deposit.