Casino Market experts talk about the features and benefits of such funds. You will learn why many providers are using them and what benefits project owners derive from this approach.
About the Phenomenon
NFTs are digital assets that operate based on distributed ledgers. Blockchain confirms the right of possession of a unique object, is responsible for security, and protects against fraud.
NFTs began to develop with the appearance of the ERC-721 standard based on Ethereum in 2017. During this period, the first experiments with blockchain casinos were carried out, but most vendors used only cryptocurrency.
In the 2020s, the popularity of NFT collections (Bored Ape Yacht Club, CryptoPunks, and others) began to grow, and the iGaming sector started to more actively implement digital tokens. Revolutionary platforms have emerged that offer such options as internal assets, bonuses, and rewards.
Current trends include:
- The development of casino metaverses. There, players can own separate areas with slot machines and card tables.
- The use of NFTs is a collateral in bets. This is an opportunity to make deposits not only with real money but also with virtual funds.
- Increased regulatory control. Authorities are starting to draft laws that define the use of such tokens in the entertainment niche.
NFTs as the Game Capital
These solutions open up new opportunities for monetisation, audience engagement, and the creation of an unusual user experience. They make this type of money unique and endowed with real value.
Let us consider the primary options for utilising NFTs in the betting industry.
Authentic In-Game Items
Tokens can be presented in the form of various objects that players own. They can be used both within the casino site and on other platforms.
The list of the most unique objects includes:
- Personalised avatars. Gamblers can buy them in the form of NFTs. Owning such items provides a status advantage (for example, access to VIP tables and exclusive slots).
- Rare chips and cards. These are digital assets and decks in poker with a limited edition. They promise good privileges like the right to pull another straw or a chance to be the first to fold.
- Authentic roulettes and slot machines. Customers can own an NFT version of gaming tables and other products and change their appearance, mechanics, or bonus settings.
Ways of Generating Income
Non-fungible tokens function as part of the Play-to-Earn economy, which guarantees additional project capitalisation:
- NFTs with dividends. They bring their owners a percentage of the online casino’s profit or the selected entertainment (slots, cards, or multiplayer fishing).
- Game artefacts. Such items have value. Thanks to this, they can be resold on specialised marketplaces or internal trading platforms.
- NFT loot boxes. Clients receive or win gifts. They contain random virtual coins with a different set of bonuses and additional privileges for users.
The Ownership of Gaming Spaces
The described tokens can be presented in the form of digital real estate or property in online casinos and metaverses.
The main options include:
- Gambling tables. They are designed for roulette, poker, and other entertainment. By owning such items, players will receive a percentage from each session.
- VIP rooms. Here, we are talking about private spaces where you can invite other users and organise some entertainment. Another option is to rent out virtual premises and receive a stable income in the future.
- Digital casinos in the metaverse. This is a chance to run a gambling hall on such popular platforms as Decentraland, Sandbox, etc.
Internal Currency
Many iGaming sites use NFTs as an alternative to chips, tokens, credits, and points. Thanks to this, such assets become part of the internal online casino economy and contribute to the growth of revenues, as well as a quick return on investment.
Main types of virtual funds:
- Coins with different levels of rarity. The provider can issue unique NFTs that increase RTP indicators and give exclusive bonuses.
- Chips. They are for sale and exchange for cryptocurrency, as well as for betting on the outcomes of sessions or the results of favourite teams.
NFTs as Part of a Loyalty Program
These digital assets are changing a traditional system of incentives in the iGaming sphere. They make the rewards more gamified, personalised, and liquid, thus increasing the audience's interest in the casino project.
Thanks to NFTs, users can actually own VIP levels, bonuses, and access to exclusive privileges, as well as trade them.
Dynamic Statuses
Instead of traditional VIP programs, providers can present categories with expanded functionality:
- Levelling up over time. It can happen due to active play and the collection of loyalty points. For example, the Gold Member token can be upgraded to Platinum to increase cashback and withdrawal limits.
- Resale. If a person stops betting actively, they can sell or transfer their VIP status to another user. This makes the loyalty program more liquid and increases the audience’s interest in the iGaming project.
- Receiving exclusive bonuses. NFT owners can be given improved betting odds, increased RTP, and special gifts from the casino.
For example, the NFT-VIP Pass project creates a limited number of special passes in the form of digital assets. They can be bought, won, or earned, and then used to gain access to place individual bids and participate in closed tournaments.
Gamification and Collectibility
Customers can collect virtual coins associated with achievements divided into several categories:
- per level (for example, for 100 spins played or 100 bets in card games);
- for rare combinations in slots or successful forecasts;
- as part of a collection, which, when complete, provides extra benefits and rewards.
Trading Assets
A popular option for integrating such funds is buying, selling, and exchanging in the secondary market. This will create additional value for the loyalty program and attract new clients to the entertainment portal.
It is important for operators to provide different ways of interacting with digital assets. One possibility is to transfer an NFT with temporary access to the VIP system to another participant, and another one is to increase the value of rare tokens over time.
Pass to the Metaverse Casino
With the development of virtual realities, NFTs can become the key to entering special areas of online entertainment platforms. These are websites with exclusive gaming tables, competitions, and other events.
Why Entrepreneurs Benefit from Using the Tool
Its application gives casino startups several competitive advantages.
Increased Audience Engagement and Retention
NFTs create new gamification mechanics that make the sessions more interesting, long-term, and profitable for project owners.
Among the popular solutions, it is worth highlighting collectability, exclusive content, progressive rewards, and other tools. Thanks to them, online casinos attract a huge number of loyal customers who play at higher limits and bring good profits to entertainment brands.
Monetisation Through the Secondary Market
Operators receive a commission from each transaction:
- sale of exclusive assets (avatars, skins, or passes to VIP zones);
- token exchange between users (entrepreneurs receive a percentage of transfers);
- organisation of NFT lotteries and auctions where special privileges in slots or card games are raffled off.
Thus, such an economy opens up new sources of income for providers. There is no need to change the basic mechanics of bets or entertainment.
Transparency and Protection Against Fraud
NFTs are recorded in the blockchain, which ensures:
- Uniqueness. The possibility of forgery or duplication is excluded.
- Decentralisation. Players can freely dispose of the assets, but operators always remain the ecosystem’s administrators.
- Control. Distributed ledger technology makes it possible to track the ownership history of each NFT.
Functioning on the blockchain reduces the likelihood of fraud in online casinos, including theft of bonuses and confidential data. All this increases the trust in the iGaming project from both clients and B2B partners.
Optimisation of the Marketing Strategy
NFTs can be used for the following purposes:
- Involvement of the audience. A great option is to raffle off unique tokens among new users.
- Cross-promotion. This is cooperation with popular brands, bloggers, and cyber sportsmen who, for example, can distribute or give away personalised digital assets.
- Motivation to make repeated deposits. NFTs can be awarded for fulfilling previously agreed conditions (for replenishing an account in a specified period, completing certain rounds, etc.).
The primary benefit for entrepreneurs is an increase in the number of registrations and deposits, as well as engagement through creative marketing campaigns.
Improved Image Indicators
Those providers who are the first to implement virtual tokens receive the status of innovative iGaming brands. In this way, they stand out from the competition and strengthen their position in the market.
The advantages of NFTs also include the attraction of a younger and more technologically savvy audience. They can be adapted to any game mechanics and tendencies, which will definitely interest many people.
The Main Things about NFTs in the Entertainment Niche
Such tokens are a long-term trend in the industry.
Key aspects that operators should take into account:
- The use of funds based on a distributed ledger makes loyalty programs more flexible and interactive. Such solutions motivate participants to stay in the casino or bookmaker ecosystem as long as possible and become regular customers.
- NFTs open new business models for entrepreneurs. With their help, businessmen can monetise game assets, improve promotion, increase security, and create innovative brands.
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