Why Don’t More Sweepstakes Casinos Accept Crypto for Payments?

It’s no secret that very few sweepstakes casinos accept cryptocurrency for payments and redemptions. Stake.us is the largest sweeps site openly accepting crypto, but another popular option has joined its ranks.

PlayFame recently added Bitcoin as a payment and redemption option, giving players more flexibility. However, existing players may have a little trouble taking advantage of this new payment method.

This begs a bigger question. Why have so few sweepstakes casinos adopted crypto? It is a popular option for real-money online casinos, but only a handful of sweepstakes casinos utilize it. 

PlayFame Adds Bitcoin to Its Payment System

Recently, when I went to redeem a gift card from PlayFame, I noticed an option to purchase GC packages with Cryptocurrency. This was new, so I started doing a little digging.

Players can now use Bitcoin to purchase GC packages and for redemptions. Redemptions start at .0006 BTC (approximately $47 USD at the time of writing).

This is a great option for new players wanting a convenient payment method not tied to credit cards or bank accounts. However, if you’re an established player, you will have to jump through a couple of hoops.

If you’re already a player, both your SC and GC balances must be zero before you can use crypto. Effectively, you must start over as a player. If you don’t have much GC or don’t care about free play, this isn’t an issue. However, if you focus heavily on free play, this can be annoying and inconvenient.

Why Don’t More Sweepstakes Casinos Use Crypto?

PlayFame joins Stake.us, MyPrize, and RuneWager as cryptocurrency adopters. Unfortunately, most sweepstakes casinos have chosen to ignore the convenience and flexibility of crypto payments.

Crypto Volatility – All cryptocurrency is volatile. For example, Bitcoin recently fell 50% from its all-time high, and many altcoins are down as much as 95%. This volatility can drastically cut into profits if a casino holds onto crypto too long.

Not Beginner Friendly – Crypto isn’t the easiest payment method. Players must understand how to send and receive crypto, and minor mistakes can be costly. Sweepstakes casinos target casual players and newbies to social gaming, and the learning curve for crypto can be too much for some players.

Extra Backend Work – Instituting crypto payments requires additional backend preparation and maintenance. It requires either a third-party payment processor or manual payment processing. That may work fine for a single site like Stake.us, but not for a company that has to integrate it into a network of a dozen casinos.

Public Perception – Crypto payments are often associated either with offshore online casinos or with potential bad actors. This perception doesn’t help a site that is claiming to offer a “legal alternative” to online gambling. All you have to do is look at American politics to see how perception can become reality, and that may not be worth the gamble to some casinos.

Why More Sweepstakes Casinos Should Use Crypto

Sweepstakes casinos looking for a competitive advantage should take a closer look at offering crypto payments. Here are a few reasons why:

Higher Player Participation – A sizeable number of players will only gamble online with crypto. They may be unwilling or unable to use other options. Other players prefer crypto because of lower fees. Regardless, you’ll unlock a portion of the player population that will avoid your casino otherwise.

Faster Redemptions – Cryptocurrency redemptions can be nearly instantaneous, a huge advantage over casinos that take 3 to 5 days to cash out. Personally, I have received redemptions from Stake.us in as little as eight minutes. If players know they will be paid fast, they will play.

Lower Fees (Both Ways) – Cryptocurrency payments offer lower fees for both players and the casino. On the player side, they don’t have to worry about credit card or banking fees. On the casino side, they incur fewer processing fees than they would through credit cards, especially if they process payments manually.

Provably Fair Gaming – Casinos that accept cryptocurrency could also incorporate Provably Fair gaming into their systems. Provably Fair gives players a way to verify that their bets are fair, increasing player trust.

More Casinos Need to Follow PlayFame’s Lead

PlayFame made a wise decision in adding crypto to its payment system. They are giving players a convenient way to pay and redeem, while potentially expanding their player base.

Stake.us has proven that you can operate a successful sweepstakes operation with crypto as an anchor, and PlayFame is paving the way for other casinos to do the same. As competition grows, sites need a way to separate from the pack. Offering crypto payments may give those casinos a competitive advantage over those still stuck using only traditional payment methods.