The cryptocurrency segment is growing quickly in online gambling. In fact, casinos were the first to demonstrate that digital currencies can lead to safe, quick, and convenient payment options for players eager to save themselves the hassle of long and often expensive processing times. As the calls for easier onboarding grow, QTech, the leading distributor for igaming content across emerging markets, has made it possible to enjoy both currencies. With demand for crypto games soaring, QTech has been able to prepare itself to introduce the means necessary to drive consumer interest, help business partners and continue to shape the gambling industry’s future. We speak to QTech Games CCO Ulf Norder who walked us through the rest.
You have recently introduced a cryptocurrency feature for your games. What motivated you to do this?
It’s certainly a timely crypto-to-game currency innovation, including the possibility to create virtual currencies as well. Our crypto innovation essentially combines two features in one: players can deposit into their wallets as normal, convert their balance into any currency (coin, token, or play games which aren’t bespoke crypto games) and then play as usual, safeguarded by our unique real-time exchange mechanism.
Remember, the gambling industry was one of the original pioneers in the use of crypto, and opportunities still abound, both for our partners and their players. By this, I naturally refer to the recognized advantages around speed and security, but also the savings our clients can then pass on to the consumer for a better experience all round.
However, the key component for our upgraded cryptocurrency toolkit is its unique crypto-to-game currency feature. In short, we can now arm our partners and their players with all the inherent crypto benefits of lower transaction costs and faster withdrawals across a wide variety of cryptocurrencies, including but not limited to: BTC (Bitcoin), ETH (Ethereum), XRP (Ripple), LTC (Litecoin), BCH (Bitcoin Cash), USDC and DAI. These cryptocurrencies, attended by a widening range of stablecoins, altcoins and even virtual tokens, will attract and empower a host of new players who hold and want to play in these popular alternatives to fiat, underpinned by a responsive real-time exchange mechanism.
Players can now both keep their wallet in cryptocurrency, and also play in traditional fiat money. As a result, most games on the QTech Games platform are now available for play, not only those games which support crypto. This innovative move tracks underlying demand and a resurgent atmosphere in the crypto community (admittedly, despite recent losses across worldwide markets in the face of inflation and the threat of recession). For many, crypto offers a riposte to the doom and gloomers of conventional currencies. Indeed, QTech Games clients are finding that those crypto customers who have accrued historic capital gains in the sector are more eager to take chances across the gaming verticals.
Do you see cryptocurrency playing an increasing role in iGaming beyond how convenient they are to transact money in and out of online gaming websites?
Absolutely. Players can benefit from fairer margins compared to fiat-money operators, who have to pay substantial costs for conventional payment-processing and chargebacks. On sportsbook, that might mean better margins – or, on casino, better promotions. Everyone benefits.
And as the recognized leading distributor across all emerging markets, we want to help educate our partners, improve adoption rates, and unpack the day-to-day needs of the customer, so we can service them. They want speed, flatter learning curves, and tighter security. As a result, we’re now giving it to them. It’s as simple as that.
Do you think that cryptocurrency adoption will lead to new genres of games?
Quite possibly, even probably. As we’ll go on to unpack in more depth below, “crash” games are certainly demonstrating a new avenue perhaps more given the the risk-prone appetites of the crypto crowd. Elsewhere, crypto keno sites are also fueling the adoption of more cryptocurrencies and casino games. It’s an unmistakable trend.
That said, the mechanics of games – be it in their design, graphics, soundscapes, playability or unique maths modelling – naturally present a foundational challenge to any genre of game that transcends mere currency. Culture is the software system on which genres hinge, and where the popularity of games can rise and fall with the zeitgeist or leanings of a local population. For example, if you don’t have the Fish game in China, there’s a zero per cent chance of becoming successful!
Do you think cryptocurrencies are used smartly in iGaming as of right now or you see room for improvement?
There’s always room for improvement. Especially in a still-nascent space. Diversify or die. It’s not a new adage. But it’s a reliable one! The market size of the global casino industry has projected an expansion of 7.32% to reach $503.54 billion by the end of 2030. Needless to say, most casino games can be enjoyed online, and the crypto-based casino market is reaping this configuration’s benefits, in lockstep with the move towards digital entertainment, powered by the pandemic.
From a wider purview, the online casino industry is still showing robust year-on-year growth, thereby leaving a widening channel to be plowed by the crypto sector as it stabilizes from recent worldwide headwinds apparent across all financial markets. And although the market for cryptocurrency games in online casinos is still in its infancy, the growth rate witnessed in the gaming industry is worth heeding. Indeed, in part, even an established platform’s relevance may well be defined by how the crypto market evolves. After all, the underlying challenge for any operator or platform is always to stay relevant and, at the same time, drive revenue streams and release more engaging features into the casino industry. To this end, QTech Games’ innovative pipeline of projects is constantly evolving. It has to in order to keep our partners ahead of their competition.
Do you have any plans for blockchain technology as part of your games in 2022?
At QTech Games, our commitment to rolling out high-quality content remains undimmed, but crypto is a progressive ally in driving revenue for our partners. So, it’s a real thrill to partner with more and more ambitious digital casinos, that are looking to disrupt the space through cryptocurrency innovation, underscored by QTech Games’ quality product line. This is just the beginning. Of course, none of this means going all-in and converting everything into the blockchain. But an edge and an understanding can be secured by simply integrating crypto as a new payment pathway. Ultimately, every scarce asset will be “blockchain-ified” – be it a stock, a fungible dollar, or a non-fungible token (NFT). It all goes on chain and can take traditional banks and charges out of the equation. Blockchains are radically egalitarian because every user becomes a root user.
Can you unpack the mechanics and appeal of “crash” games, another one of the features of your recent integration pipeline?
Just take a recent Asia-facing deal we struck to integrate premium content from Spribe, an emerging force in game development, widely renowned for its best-in-breed “crash” franchise, also known as Turbo Games.
These games are now available to QTech Games partners via that agreement is Spribe’s smash hit sensation, Aviator, a prime example of such a game. Aviator is a breakthrough social multiplayer game consisting of an increasing curve that can “crash” at any time. When a round begins, a scale of multiplier starts growing and players must “cashout” before the plane flies away. Originating in the video-gaming industry, this format has become increasingly popular in digital and crypto casinos, due to its simplicity and exciting user experience. These games combine components of video games and social media with “smart” gamification features, making for a deeper, more immersive journey.
Self-evidently, it’s pretty unique and offers a totally different experience from other games because it is interactive. Players are active participants and have to make a decision and cash out at the right time. Providing a feeling of control offers a mixed betting and video-slot experience and we have the highest conversion rates from these player types, particularly among millennials.