Country Spotlight : Why the Blockchain Islands Are Open For Crypto Gaming
Being a successful online gaming entrepreneur is a challenge. Business savvy and know-how are often not enough. A lot of times, the simple choice of where you decide to open up shop becomes one of the key factors for success. Determining where you’ll offer from, and what jurisdiction fits you, is a critical piece of the puzzle for today’s online gaming pros. With BetProtocol, our technology enables entrepreneurs to launch gaming apps from many parts of the world, with no coding required.
In today’s post, we’ll shine the spotlight on two jurisdictions that dub themselves the “Blockchain Island” : Malta and the Isle of Man. Both Malta and the Isle of Man are famous for being online gaming meccas. Both islands recently embraced blockchain technology, and their regulators see the potential enormous gains that blockchain can offer their gaming industries. Which island is right for you? We’ll explore some of the regulatory ins and outs of each, so that you can decide.
You may recognise Malta as the setting place for Game of Thrones locations the King’s Landing and Westeros. But did you know that in January of 2019, the island became one of the first places in the world to offer a regulatory sandbox for the use of Blockchain and Distributed Ledger Technology (DLT) in gaming?
The Malta Gaming Authority (MGA) has since run a 10 month sandbox programme that allowed the use of Virtual Financial Assets (VFAs) and Virtual Tokens for online remote gaming.
Applicants for a Malta Gaming Authority license for remote gaming can now petition the regulator to include popular cryptocurrencies for use in wagering. Backend and other service providers can also apply for a B2B license in which they will be allowed to offer such blockchain enabled services to other operators.
MGA Chairman Cushcieri said in 2017 that regulators need to adopt “technologies such as DLT (Distributed Ledger Technology) to achieve more efficacy in the regulatory system,” and that “regulators should not see new technologies as threats but as opportunities for innovation and improvement.”
How viable is using blockchain and crypto in online gaming apps? Those who are bullish on Esports say that it is a great opportunity indeed.
One area that will surely drive on the use of blockchain technology is betting on esports. For the moment, it seems as if the industry is waiting for a new target demographic to mature. Betting on esports is becoming more popular as children who would play Fifa or Call of Duty become old enough to place a wager on their favourite pro team. Esports and crypto-currencies are a perfect partnership to help each other grow. — Gambling Insider
The Isle of Man
The Digital Isle of Man, which is the country’s regulator responsible for innovation in e-Gaming, digital economy, marketing, opened its first blockchain office in 2019.
The CEO of the Digital Isle of Man, Lyle Wraxall, had many words to say about blockchain’s potential, and its drawbacks:
I think there’s so much hype around blockchain especially on the global level. I’m certainly not a blockchain evangelist. While there are cases where blockchain can be a really good technology to use, there are more cases where it’s terrible to use and being used for the wrong reasons.
They are very different than what I thought they would be, and we’re seeing much more blockchain enabled in online gaming than I expected. That allows for a bit more business innovation, and we’ve got really interesting case studies of blockchain enabled in online gaming and you see that on the rise. — Gambling Insider
At BetProtocol, we see the online gaming industry as the perfect ground for the application of blockchain technology. The efficiency gains and cost savings of automated smart contracts, and the compliance and record keeping guarantees of an immutable ledger are indeed boons for the legacy online gaming space. Now, with technology that allows entrepreneurs to launch blockchain and cryptocurrency enabled gaming apps with no coding required, virtually anyone can be an online gaming operator.
Do you see Malta or the Isle of Man as your next online gaming jurisdiction?
BetProtocol enables anyone in the world to create gaming platforms with no coding required. Thanks to BetProtocol’s blockchain technology, these platforms are secure, scalable and regulatory compliant. Its vision is to enable anyone in the world to dream of being a gaming platform owner one morning, and actually be one that same day.