There is an element of risk in all gambling. For players that choose to take part in online gambling, there is another element of risk. Fraud.
Players have trust in traditional casinos because they can see, hear and touch the games. In any gambling activity, there is a risk of scams, but in traditional casinos, the risk is reduced. Generally, the element of fraud comes from other players and not the house.
Casinos are regulated, which means consumers have some protections. If the house wants to cheat, then they risk losing their license and going out of business.
The house already has the edge, they don’t need more.
In online casinos, the risk of fraud is higher because players cannot see, hear or touch the games. There are no consumer protections because online casinos tend to operate in countries with limited or lax regulation. However, online casinos are a market, and just like any other, if the house edge seems to be too high, players will migrate to other casinos.
What is Provably Fair?
Players should look for provably fair documentation when choosing an online casino. Provably fair means the casino publicly shares the underlying computer code (or algorithm) that creates fairness.
Basically, the casino operator publishes the method used to verify every interaction in a game.
For example, if you are playing blackjack, then you want to be sure the dealer has the same odds of drawing a face card as every player.
For non-technical players, it may be difficult to confirm the provably fair methods are true. However, it is important to look for the documentation published on the online casino’s site. Players can complete some due diligence by researching online gambling forums and look for discussions about the online casino of their choice.
Common Bitcoin Casino Scams
The best way to avoid scams is verifying the provably fair documentation. The second best way is to apply general internet security guidelines.
There are two major bitcoin scams: playing at an unfair casino and betting with the house.
One of the main bitcoin casino scams are slot games. The casino operator simply sets win rates at a lower percentage than the industry average. To verify win rates, then check online forums to ensure players cash out at normal rates with traditional casinos.
Another scam is betting with the house. Typically seen in dice games, this is an Exit Scam. Gamblers deposit funds into the house account and win a percentage along with the house. When the operator chooses, then they simply shut down the site and take the bitcoin funds into the account with them. Along those lines, the casino operator can simply underpay investors. If the casino operator has a 10% profit, they may only share 8% with investors and pocket the extra 2%.
In general, avoid betting with the house. If the house always wins, why would they share any profits with gamblers?
To avoid scams, then there are some guidelines but use caution. If it seems to good to be true, then it is.