Prospects of NFT Projects — From Slots to Online Casinos
Digital assets are penetrating many business areas, and the gambling industry is no exception. Slot machines and casino platforms are becoming more common, and the world’s leading IT companies have announced the creation of a gaming Metaverse based on NFTs.
In this article, experts of the Rosloto studio will tell you about the above-mentioned modern technology and its application in the iGaming industry.
What Is NFT in the Gambling Niche
The concept means an individual cryptographic digital asset. It is created on the basis of Blockchain, which ensures security and decentralised operation of the solution.
Technical Superiority of the Product
The NFT is presented in the form of a digital certificate. A virtual document confirms the ownership of various virtual objects: art, films, soundtracks, gifs, and tweets.
In the iGaming industry, these are:
- games (slots, poker, P2E strategies, and multiplayer fishing);
- collectable cards;
- characters;
- bonuses and gift certificates;
- artefacts, etc.
The key feature of NFTs is their authenticity, that is, their existence in the digital world only in a single copy. Such objects can be created, sold, or exchanged. A line of program code with information about the new owner of the token appears in the “eternal” IPFS registry immediately after the transaction is completed.
NFTs can be compared to intellectual property in the real world. Initially, they were created as an important component of such a cryptocurrency as Ethereum. Over time, the tokens have transformed into completely independent solutions.
For NFTs and Ethereum, the same encryption algorithms are applied:
- ERC-721 (the standard describes the rules for creating and selling tokens);
- ERC-721R (the use of smart contracts for the exchange of digital assets);
- ERC-998 (it combines different tokens into one composite digital object).
Examples of Using NFTs in the Gambling Industry
Today, many companies are investing in the development and promotion of iGaming projects with NFT elements.
- Crypto Kitties is the first NFT game. It was presented in 2017 by Axiom Zen, an American studio. Gamblers grow virtual cats of different breeds and then sell them on special gaming exchanges. The most expensive pet was sold for more than 170 thousand dollars, and the founders of the project earned tens of millions of dollars.
- Sorare is the first 3D simulator with NFT elements. The authors of the product are Nicholas Julius and Adrian Montfort. Gamblers collect football cards, create teams, and compete with each other. The most expensive card was sold for 65 thousand dollars. It depicts PSG forward, Killian Mbappe.
- Evolution Gaming is one of the first developers to introduce non-fungible tokens into their proprietary bonus program. The Swedish brand has replaced the progressive jackpot with the raffle of 4 exclusive CryptoPunks NFT cards. The solution is integrated into the Megaways premium line of slot machines.
- Flamingo Casino Club is one of the first iGaming projects with NFT investments. The manufacturer has drawn more than 1 thousand unique NFT cards. By purchasing digital assets, entrepreneurs become full-fledged investors of a gambling resource with a guaranteed payment of 50% of the platform’s profit.
NFT Casino: Description of the Project and Benefits of Its Implementation
A gaming site with non-fungible tokens is a modern and multitasking product with the best games from licensed providers.
The functionality of the platform is not much different from traditional online casinos:
- Users register, make the first deposit, place bets, and win prizes.
- Operators earn a stable income. It consists of GGR (bets made by gamblers minus their winnings), profits from advertising, as well as investment in joint projects, and much more.
Features of Websites with NFTs
Key components of a casino of this type:
| Financial module | On gaming sites with Blockchain technology, NFTs are used as units of account along with fiat money (US dollars, euros) and various types of cryptocurrency. Vendors of the financial software recommend that operators install 2 payment modules:
Modern payment gateways are available along with a useful currency converter. The program conducts fast exchange operations at a loyal rate |
| Verification system | Licensed operators use KYC for the verification of the identity of players. It increases the level of security of gambling platforms and the credibility of customers. The identification procedure is launched every time a user enters an NFT casino, withdraws earned funds, or makes transfers with non-fungible tokens |
| Loyalty program | Entrepreneurs integrate NFT assets into the bonus program as:
The introduction of non-fungible tokens into the loyalty system attracts new visitors to the website and increases the loyalty of regular customers |
Key Advantages of iGaming Projects Based on NFTs
The main reasons why entrepreneurs should order a casino that works with digital assets:
- High level of security. The gambling platform was created on the basis of Blockchain technology, which ensures its reliable operation without any failures. Such a website is protected against hacker attacks, fraud on the part of users, and incompetent actions of employees.
- Good feedback from the audience. Customers are happy to place bets in NFT casinos and participate in multiplayer tournaments with the drawing of a jackpot. Gamblers are attracted by high security, provable honesty of the outcomes of game sessions, and social interaction.
- Profitable investment. Entrepreneurs own not only a casino platform but also several NFTs. In the future, the value of digital assets may increase significantly, which will bring additional profit to operators.
- Low competition. The described niche is not yet as crowded as related gambling areas. For businessmen, this is a great chance to quickly enter the market with a highly profitable iGaming project and take a leading position in the industry.
The Legality of NFT Casinos
A gaming site with non-fungible tokens is a legitimate gambling resource.
NFT operations are equated with cryptocurrency transactions that are legalised in the following prestigious jurisdictions:
The circulation of digital currency is also legalised in the USA, Spain, Sweden, and other European and Asian countries. The main requirement for operators is to declare income on time (in dollar equivalent as of the date of generation of revenue) and pay taxes following the fiscal policy of the chosen jurisdiction.
One of the first licensed casinos to implement NFTs was the Rollbit project. The gambling resource works with the permit issued by the Curacao Gambling Commission and the Rollbots collection. The line of proprietary solutions consists of more than 10 thousand unique NFT robots generated using the ERC-721 cryptographic algorithm.
The Nuances of Creating NFT Entertainment
A game with non-fungible tokens is an original development based on a decentralised application, DApp.
Blockchain technology, which is responsible for the high speed of request processing (launch of the game, appearance of bonus features, calculation of prize money) and the complete security of the solution, is considered the foundation of the product.
Benefits of NFT Games
Key characteristics of entertainment with non-fungible tokens:
| Diverse gameplay | The NFT collection contains a wide variety of content: from traditional slot machines to multiplayer fishing and action games. P2E (Play to Earn) entertainment, puzzles, and skill games are especially popular |
| Provable honesty of the outcome | Modules of the DApp game are distributed across several cloud storages, providing them with 100% protection against manipulation and rigging of the results of the session |
| Excellent design | NFT assets are used as unique artistic elements: background screensavers, gifs, and 3D images of the main characters. The more exclusive features a game has, the more players it attracts |
| Connection to various bonuses | Special options (risk rounds, free spins) can be implemented both in the entertainment itself and integrated from outside. NFT content is often connected to seasonal promotions, multiplayer tournaments, and achievement races |
How NFT Games Work
The algorithm for the functioning of slot machines and table games with non-fungible tokens:
- The built-in random number generator creates a sequence of combinations on the panel. These are symbols on the reels, card denominations, numbers on the electronic roulette scoreboard, etc.
- A data packet with game combinations is sent to the cloud storage.
- The received information (sequence of numbers) is encrypted using cryptographic means. After that, the data sets are converted into unique hash functions.
- The processed information is extracted from the virtual cloud in the form of game symbols, cards, and roulette numbers.
In P2E and action content, as well as in multiplayer solutions, in addition to RNG, a game strategy is used. Gamblers rely not only on luck but also on logical thinking.
NFT and the Metaverse
The concept means a network of virtual worlds focused on social interaction.
By 2030, experts promise to present a global digital universe, access to which will be available to every internet user. So far, the idea of the Metaverse is being developed by such top IT companies as Google, Apple, Meta, and others.
Among the developers of the virtual world, there are also iGaming providers. Thus, Entain, the largest British betting operator, invested more than 133 million dollars in the NFT industry. The company announced the launch of Ennovate, a global innovation hub the headquarters of which is located in London.
The main goals of the project:
- creation of immersive casino entertainment and other games in the Metaverse;
- financing of NFT start-ups;
- development of applications for non-fungible tokens, as well as virtual and augmented reality.
The Main Things about NFT Assets in the Modern Gambling Niche
The described certificates confirm ownership of virtual objects. These can be slot machines, bonuses, gift certificates, and other unique assets.
- NFT products work based on decentralised DApps applications and Blockchain technology. They are distinguished by excellent graphics, provable honesty of results, attractive bonuses, and diverse gameplay.
- Casinos with non-fungible tokens use special cold storage wallets, KYC systems for identifying gamblers, and original loyalty programs. Operators can install NFT content of various genres, from classic video slots to action games and puzzles.
- The advantages of casinos with digital assets include the high interest of the audience, good security, and excellent investment opportunities. There is still low competition in the NFT niche, which encourages entrepreneurs to invest in this type of project.
You can learn about a profitable NFT casino at the Rosloto studio. We are ready to implement solutions of any level of complexity: from traditional turnkey platforms to modern websites for binary options trading.
Rosloto experts provide the following useful gambling services:
- development of HTML5 slots based on individual sketches;
- drafting a business plan;
- installation of cryptocurrency gateways;
- launch of a Bitcoin casino, and much more.
For all questions, please contact our managers.
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