Throughout the extensive timeline of human existence, gambling has remained a prevalent activity. From the Paleolithic era to the present day, evidence of gambling can be found in every major civilization and society.
As technology has advanced, gambling methods have also evolved. While prominent gambling destinations like Las Vegas and Macau continue to thrive with physical casinos and entertainment, online casinos have experienced a significant surge in popularity, with many of these platforms utilizing cryptocurrency as their driving force. In fact, the largest online casino, Stake, reportedly generated a staggering $2.6 billion in gross revenue in 2022 alone.
In Episode 14 of The Agenda podcast, hosts Jonathan DeYoung and Ray Salmond engaged in a conversation with Zach Bruch, the founder and CEO of MyPrize. MyPrize is a crypto casino that recently emerged from stealth mode and is now open for early access. The purpose of the discussion was to gain a deeper understanding of how crypto casinos operate, their role in the broader crypto ecosystem, and how they may be quietly bringing millions of people into the realm of Web3.
Bruch contended that the primary use case for crypto in 2024 remains speculation, which has been exemplified by the memecoin craze. This topic was previously explored in detail in Episode 34 of The Agenda with Andreas Brekken from SideShift.ai. Bruch explained that memecoins have gained immense popularity because people enjoy speculating and engaging in group activities with their friends. He views crypto casinos as enjoyable spaces where individuals can come together and partake in risk-taking and speculative behavior within a fun environment. At MyPrize, the minimum bets can be as low as $0.01.
However, operating an online crypto casino comes with its own set of challenges. Compliance with the regulatory requirements of each country it operates in is crucial. Consequently, many online casinos, including MyPrize, have separate websites with varying functionalities to cater to customers based in the United States.
Security concerns also differ for crypto casinos, as they must ensure the invulnerability of their code and smart contracts. In September 2023, Stake fell victim to a reported $41 million hack. According to Bruch, operating a crypto casino is akin to operating a crypto exchange, as it involves building user accounts, considering aspects like AML, KYC, fraud, chargeback risk, asset security, and more.
Bruch emphasized that online casinos serve as significant entry points into the crypto ecosystem. He stated that most people are unaware that some of the largest crypto applications are on-ramping through the casino space, providing an opportunity to guide these customers into the broader crypto ecosystem. This process is facilitated by the fact that gambling has historically demonstrated a strong product-market fit.
MyPrize envisions a long-term strategy where users enter the crypto world through the casino and then remain in Web3. Bruch explained that they are starting by creating a compelling application that will attract millions of users, subsequently channeling them into a more extensive decentralized ecosystem.
To listen to more insights from Bruch’s conversation with The Agenda, including discussions on the future of “GambleFi,” the existence of casinos in the metaverse, and more, the full episode is available on Cointelegraph’s Podcasts page, Apple Podcasts, and Spotify. Don’t forget to explore Cointelegraph’s full lineup of other shows as well.
Disclaimer: This article is for general information purposes only and should not be considered or relied upon as legal or investment advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.