A company in Macau is planning to create the first blockchain-based casino in the world.
De Club International Company is aiming to raise more than $1bn through its initial coin offering (ICO). The former CEO of Jimei International, Kennis Wong, is heading the project.
The funds raised will be used to create a casino gaming club powered by blockchain technology. De Club International has detailed its plans in a white paper published on its website.
Their aim is to create what will transform the “lengthy and costly payment processing between fiat currencies and chips, as well as the general lack of trust in the casino gaming industry… a thing of the past”.
Details of the project
De Club International is working alongside Wide Rich Global Company Limited from Malta on the ICO and will be issuing 20bn DEC tokens.
Once the sale of the tokens is complete, De Club International will apply for a Macau junket promoter license, as look to open numerous land-based casinos, include outside of Macau later on. It has allocated 35.5% of the funds for the licensing and acquisition of these casinos.
DEC is going to be backed by cash and you will be able to convert it into different types of cryptocurrencies. There will also be stablecoins to help power the world’s first online casinos that are integrated seamlessly with land-based casinos.
De Club International aims to have the first prototype for this tokenized online platform ready for launch at the beginning of 2019. The pre-sale for the ICO begins on 15 November.
For now, DEC will be an ERC-20 token and part of the Ethereum network. However, if the congestion at the Ethereum network continues and affects the speed of the transactions, the company may look for alternative options. For example, Bitcoin Cash is currently in the mix for possible use.
De Club International will have a dedicated DEC app that allows the holders of tokens to host games themselves online. They will be able to crowdfund using smart contracts. Therefore, it will also make money through hosting and regulating table games.
Looking further into the future, the company hopes to acquire an offshore bank by the end of 2020. This would allow it to further streamline the payment network via fiat currencies within its ecosystem.
Blockchain and the casino space
There are many tokens and companies out there looking to pair gambling with blockchain technology.
Some of the perks include the safety net that this technology offers. All transactions are recorded on the blockchain and they cannot be changed or deleted. Therefore, companies will have to pay out on their obligations.
Blockchain also makes deposits and withdrawals much faster. For example, many online casinos currently take a number of working days to process withdrawals. They also need time to verify a person’s identity, something that can quickly be resolved using blockchain technology.
In the current climate, with the introduction of GDPR, companies need to further protect all data that they store. Blockchain technology is ideal for this task.
Privacy is always an important issue. People who use online gambling sites often do not like having these transactions appear on their bank records. If you are applying for a mortgage and the bank manager sees you regularly gamble, this is often a red flag and could play a significant role in whether you get approved or not.
Blockchain technology in online casinos will introduce an increased level of anonymity. Public addresses cannot be linked to a particular person.
No personal information is linked to transactions, so they can be kept completely private. Of course, this is an issue for problem gamblers who will be able to better hide their gambling activities from people in their lives.
The online casino market will also be opened up a lot more than its current state. Most gaming platforms online don’t offer their services to a long list of residents of certain countries.
This is often due to them not being properly licensed or not being able to accept deposits in certain situations. This could change through the use of blockchain technology, as transactions are made in a much safer and transparent manner.
There would be an improvement in the house edge for players. As there are significant costs associated with operating an online platform, casinos often pass some of them on to customers in the odds that they offer. Blockchain will eliminate a lot of costs traditionally associated with these operations, which could mean the end of charges and fees.
It is clear that the gambling industry stands to benefit greatly from blockchain technology. While this will be the first complete casino powered by blockchain, it could become a popular trend in the coming years if it proves to be successful.