The gambling industry has experienced significant development over the past few decades. From traditional brick-and-mortar casinos to online platforms, the industry has diversified and grown in terms of revenue and reach. Over the years, we’ve seen multiple innovative concepts, such as AR/VR gambling, social gambling, the introduction of high volatility and skill-based games. But one of the most interesting trends, which is currently on the rise, is the adoption of crypto staking mechanics by the iGaming platforms.
What is crypto staking?
Cryptocurrency staking is a process by which an individual can earn rewards for holding a certain amount of coins or tokens in a wallet or a staking pool. This process is used to secure the network of certain proof-of-stake (PoS) cryptocurrencies, which is an alternative to the proof-of-work (PoW) consensus mechanism used by coins such as Bitcoin (BTC).
When a user stakes their coins, they are essentially holding them in a wallet and using them to validate transactions on the network. In return, they are rewarded with a percentage of the new coins created during the staking process. These rewards are usually paid out in the same cryptocurrency that is being staked. If we step aside from the official staking definition, Staking can be compared to a bank deposit, where you are depositing funds for a certain amount of time to receive interest.
One of the main benefits of staking is that it allows users to earn passive income on their cryptocurrency holdings. Unlike PoW coins, where rewards are distributed via mining, staking allows individuals to earn rewards simply by holding and supporting the network.
Here’s a list of popular coins that can be staked:
- Ethereum 2.0 (ETH): Ethereum, the second-largest cryptocurrency by market capitalization, is in the process of transitioning from a PoW to a PoS consensus mechanism. This transition, known as Ethereum 2.0, will allow users to earn rewards by staking their ETH.
- Cosmos (ATOM): Cosmos is a blockchain network that aims to create an ecosystem of interconnected blockchains. Users can stake ATOM to earn rewards and support the network.
- Algorand (ALGO): Algorand is a PoS blockchain that aims to provide fast and secure transactions. The token can be staked and is offering a good APR.
- Polygon (MATIC): Matic is a high utility token that is accepted as a payment method on several gaming and gambling platforms, also can be staked to receive passive income.
Staking in gambling
The staking concept in gambling refers to the use of crypto received via staking as a method of funding or participating in online gambling activities. This can include using crypto to purchase chips or tokens in a virtual casino, or using it to place bets on various games or sporting events. Some online gambling platforms offer built-in staking opportunities, where users can earn rewards for holding and staking a certain amount of cryptocurrency on the platform. However, one major difference is that when you receive tokens via staking on iGaming platforms, you will be able to only use these tokens as chips and bets on the gambling resource. However, this is not a limitation to the majority of users, since they were planning to use their funds as bets in the first place.
The trend for staking in online crypto casinos is becoming popular because of the convenience and value that it provides to users. People can stake different cryptos, receive token rewards and use them to fund their gambling experience. Basically, users get the chance to play for free without the risk of losing their personal deposit. Moreover, tokens can be used in high volatility games, where lucky users can turn a “free token” into a 6-figure jackpot.
Pros and Cons of staking in on iGaming platforms
The first instances of cryptocurrency being used in the gambling industry date back to 2011, when a few online casinos began accepting Bitcoin as a payment method. In just 7 years’ time the number of gambling platforms that accept cryptocurrencies grew to 4,000+ and every year more and more iGaming businesses are adopting crypto. However, staking on gambling platforms is relatively new – such a concept was first presented in 2020 and only 10-15 gambling resources offer this functionality in 2023. Although the staking mechanic is super beneficial for both users and businesses, the adoption of staking in gambling is still in the very early stages due to the complexity of this feature. In the upcoming years, we will definitely see a rise in the popularity of staking on iGaming platforms, but there’s no need to wait – you can start staking today, but keep in mind the following Pros and Cons before you do so.
|Free bets: When staking on iGaming platforms, you receive daily rewards that can be used as bets for more winnings||Volatility: The value of cryptocurrency can be highly volatile, which means that the value of your funds can fluctuate dramatically in a short period of time.|
|Safety of funds: When you play with tokens received as staking rewards, you are not using your deposit to place bets, which helps save funds||Lack of regulation: The crypto casino industry is largely unregulated, which can make it difficult to ensure that games are fair and that players’ funds are secure.|
|Convenience: If you are willing to play big, you can withdraw your staking deposit to fund future games without losing the generated interest||Limited payment options: Many crypto casinos only accept a limited number of cryptocurrencies, which can make it difficult for some users to deposit or withdraw funds.|
|Loyalty rewards: Some crypto casinos offer loyalty rewards to users who hold and stake a certain amount of cryptocurrency, which can provide additional benefits and value||Extra requirements: Some casinos would require extra registration and KYC verification, before letting you stake funds|
Best solutions for iGaming crypto staking
Zenex Token – Stake2Win
Zenex token is a cryptocurrency created specifically for the iGaming industry. ZNX is part of a licensed European financial institution and provides the highest utility for both users and businesses from the gambling sphere. The Stake2Win concept that was created by Zenex together with gambling household names offers up to 130% APR – you can stake ZNX on 3 platforms and use the reward tokens as bets on more than 10 resources. Zenex was selected as number one in this list due to the versatility of use, high-interest numbers, and safety of funds backed up by financial licenses.
Betfury is another great resource that offers staking. The platform introduced such a mechanic in early 2021 and developed it greatly. Betfury allows users to top-up their balances with over 55 cryptocurrencies and offers staking of the native BFG token with an APR close to 100%. Betfury comfortably beats the competition for the second spot, however since the BFG token can be used on just one resource, it causes limitations for the users.
SportBet One is a bookmaking platform that allows you to make bets on sports events, virtual sports, and e-sports. The platform accepts both fiat and crypto deposits, making it convenient for all users. SportsBet One is among the first gambling platforms to introduce the staking mechanic and it is available to users till this day. However the limitations to one resource and sports betting theme as well as average APR numbers ~45% kept SportsBet One from taking the second place.
FAQ about staking in IGaming