#bitcoinconfmelb

1. Bitcoin: The Future of Gambling
James Canning
Webmaster
Bitcoin Betting Guide

2. Bitcoin: The Future of Gambling
In the last year there has been $24 billion of bitcoin transactions
Roughly 50% of Bitcoin transactions are gambling related

3. Bitcoin: The Future of Gambling
Gambling is a $3 trillion per year industry
Bitcoin is the fastest growing sector of the gambling industry

4. Bitcoin: The Future of Gambling
Gambling is a $3 trillion per year industry
Bitcoin is the fastest growing sector of the gambling industry
Why?
The attributes and characteristics of bitcoin make it suited to
gambling. Also the high friction of gambling with fiat currency
due to laws and regulations

5. Fiat Gambling for the Customer in Australia/UK
Bitcoin Gambling Advantages

6. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
Bitcoin Gambling Advantages

7. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
Bitcoin Gambling Advantages

8. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
• 2 business days for withdrawal
Bitcoin Gambling Advantages

9. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
• 2 business days for withdrawal
• Now the operator can charge your cc at any time
Bitcoin Gambling Advantages

10. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
• 2 business days for withdrawal
• Now the operator can charge your cc at any time
• Now the operator can sell your information or have it stolen at any time
Bitcoin Gambling Advantages

11. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
• 2 business days for withdrawal
• Now the operator can charge your cc at any time
• Now the operator can sell your information or have it stolen at any time
• Now the operator and push market you marketing you don’t want
Bitcoin Gambling Advantages

12. Fiat Gambling for the Customer in Australia/UK
• 15 minutes for sign up and first deposit if you use a credit card (2 business
days if you don’t use a credit card)
• Send in front and back of cc, government ID and a utility bill then wait for
verification
• 2 business days for withdrawal
• Now the operator can charge your cc at any time
• Now the operator can sell your information or have it stolen at any time
• Now the operator and push market you marketing you don’t want
• Multiple records available for taxman, banker, spouse, police, et cetera
Bitcoin Gambling Advantages

13. Fiat Gambling for the Customer in the USA, China or India
• Fee to the operator for depositing less than $1000
Bitcoin Gambling Advantages

14. Fiat Gambling for the Customer in the USA, China or India
• Fee to the operator for depositing less than $1000
• Limited deposit options such as western union
Bitcoin Gambling Advantages

15. Fiat Gambling for the Customer in the USA, China or India
• Fee to the operator for depositing less than $1000
• Limited deposit options such as western union
• One free withdrawal via cashiers check per month, $50 for every
additional withdrawal
Bitcoin Gambling Advantages

16. Fiat Gambling for the Customer in the USA, China or India
• Fee to the operator for depositing less than $1000
• Limited deposit options such as western union
• One free withdrawal via cashiers check per month, $50 for every
additional withdrawal
• Deposit and withdrawal times up to 2 weeks!
Bitcoin Gambling Advantages

17. Bitcoin Gambling

18. Bitcoin Gambling Advantages
Bitcoin Advantages For the Customer
• Instant sign up

19. Bitcoin Gambling Advantages
Bitcoin Advantages For the Customer
• Instant sign up
• Free and instant deposits and withdraws of any amount 24/7

20. Bitcoin Advantages For the Customer
• Instant sign up
• Free and instant deposits and withdraws of any amount 24/7
• Better payouts due to operator cost savings
Bitcoin Gambling Advantages

21. Bitcoin Advantages For the Customer
• Instant sign up
• Free and instant deposits and withdraws of any amount 24/7
• Better payouts due to operator cost savings
• Anonymity (privacy, legal, tax)
Bitcoin Gambling Advantages

22. Bitcoin Advantages For the Customer
• Instant sign up
• Free and instant deposits and withdraws of any amount 24/7
• Better payouts due to operator cost savings
• Anonymity (privacy, legal, tax)
• Provably fair gambling
Bitcoin Gambling Advantages

23. Fiat Gambling for the Operator
Bitcoin Gambling Advantages

24. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
Bitcoin Gambling Advantages

25. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
Bitcoin Gambling Advantages

26. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Gambling Advantages

27. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Advantages for the Operator
Bitcoin Gambling Advantages

28. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Advantages for the Operator
• No transaction fees, chargebacks or financial fraud
Bitcoin Gambling Advantages

29. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Advantages for the Operator
• No transaction fees, chargebacks or financial fraud
• Anonymous customers means no KYC and ID fraud
Bitcoin Gambling Advantages

30. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Advantages for the Operator
• No transaction fees, chargebacks or financial fraud
• Anonymous customers means no KYC and ID fraud
• Reduced friction means far higher conversion rate, less drop outs (x20!)
Bitcoin Gambling Advantages

31. Fiat Gambling for the Operator
• 2% transaction fees, 3-9% cc fees
• Constant chargebacks and fraud
• 99% drop out rate
Bitcoin Advantages for the Operator
• No transaction fees, chargebacks or financial fraud
• Anonymous customers means no KYC and ID fraud
• Reduced friction means far higher conversion rate, less drop outs (x20!)
• Less need to comply with laws, taxes and licence burdens
Bitcoin Gambling Advantages

32. Laws and Jurisdictions

33. Laws and Jurisdictions
• There are none

34. Laws and Jurisdictions
• There are none
• Assume the same legal status as fiat gambling

35. Laws and Jurisdictions
• There are none
• Assume the same legal status as fiat gambling
• You, the gambler are doing nothing against the law

36. Laws and Jurisdictions
• There are none
• Assume the same legal status as fiat gambling
• You, the gambler are doing nothing against the law
• The operator is breaking Australian law but is not under Australian
Jurisdiction, or are they?

37. Laws and Jurisdictions
• There are none
• Assume the same legal status as fiat gambling
• You, the gambler are doing nothing against the law
• The operator is breaking Australian law but is not under Australian
Jurisdiction, or are they?
Match Fixing
• No known cases yet but bitcoin is PERFECT for match fixing by individual
players, its is happening or it will happen

38. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet

39. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin

40. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin
What Will Law Enforcement do?

41. Laws and Jurisdictions

42. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin
What Will Law Enforcement do?
• Domain seizures

43. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin
What Will Law Enforcement do?
• Domain seizures
• Server seizures

44. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin
What Will Law Enforcement do?
• Domain seizures
• Server seizures
• Physical office raids

45. Laws and Jurisdictions
What Has Law Enforcement Done?
• Nothing yet
• With fiat operators they stop the operators ability to transact, this is
impossible with bitcoin
What Will Law Enforcement do?
• Domain seizures
• Server seizures
• Physical office raids
• (for match fixing) Extremely close monitoring of players

46. Investing in Bitcoin Gambling Operators
Anyone can Invest on the Right Side of a Gambling Operation
• Just Dice: invest in the house bank

47. Investing in Bitcoin Gambling Operators
Anyone can Invest on the Right Side of a Gambling Operation
• Just Dice: invest in the house bank
• Casino Bitcoin: Invest at Havelock Investments

48. Investing in Bitcoin Gambling Operators

49. Investing in Bitcoin Gambling Operators
Anyone can invest on the right side of a gambling operation
• Just Dice: invest in the house bank
• Casino Bitcoin: invest at Havelock Investments
Compare That to the Current Barriers of Entry for Casino Ownership
• Entrenched monopoly licences

50. Investing in Bitcoin Gambling Operators
Anyone can invest on the right side of a gambling operation
• Just Dice: invest in the house bank
• Casino Bitcoin: invest at Havelock Investments
Compare That to the Current Barriers of Entry for Casino Ownership
• Entrenched monopoly licences
• Minimum investment amounts, feed

51. Investing in Bitcoin Gambling Operators
Anyone can invest on the right side of a gambling operation
• Just Dice: invest in the house bank
• Casino Bitcoin: invest at Havelock Investments
Compare That to the Current Barriers of Entry for Casino Ownership
• Entrenched monopoly licences
• Minimum investment amounts, feed
• Bank accounts and ID verification

52. Provably Fair Gambling

53. Provably Fair Gambling
What is Provably Fair Gambling
Goal: stop the casino being able to know or decide what the next card or
number will be

54. Provably Fair Gambling
What is Provably Fair Gambling
Goal: stop the casino being able to know or decide what the next card or
number will be
Uses cryptography and bitcoin logic but does not use bitcoin itself. Is just as
easy for fiat currency operators to implement

55. Provably Fair Gambling
Definitions
Hashes: A long string of characters derived from other data. This is a
mathematical problem that is extremely difficult to solve but if it was solved
it would give you the data it hashes. If a solution is presented it is easy to
backward test it to see if the solution is correct or not. This is known as a one
way function

56. Provably Fair Gambling
Definitions
Hashes: A long string of characters derived from other data. This is a
mathematical problem that is extremely difficult to solve but if it was solved
it would give you the data it hashes. If a solution is presented it is easy to
backward test it to see if the solution is correct or not. This is known as a one
way function
Seeds: Extra data (a string of characters) applied to the hash which
modifies what it hashes.

57. Provably Fair Gambling
Provably Fair Card Dealing

58. Provably Fair Gambling
Provably Fair Card Dealing
Step 1: Site shuffles the deck as normal

59. Provably Fair Gambling
Provably Fair Card Dealing
Step 1: Site shuffles the deck as normal
Step 2: Site provides you with a hash of the shuffle

60. Provably Fair Gambling
Provably Fair Card Dealing
Step 1: Site shuffles the deck as normal
Step 2: Site provides you with a hash of the shuffle
Step 3: you provide a random seed that the site cannot see or predict
(client side not server side)

61. Provably Fair Gambling
Provably Fair Card Dealing
Step 1: Site shuffles the deck as normal
Step 2: Site provides you with a hash of the shuffle
Step 3: you provide a random seed that the site cannot see or predict
(client side not server side)
Step 4: Your seed changes the shuffle to something neither you nor the site
can have known

62. Provably Fair Gambling
Provably Fair Card Dealing
Step 1: Site shuffles the deck as normal
Step 2: Site provides you with a hash of the shuffle
Step 3: you provide a random seed that the site cannot see or predict
(client side not server side)
Step 4: Your seed changes the shuffle to something neither you nor the site
can have known
Step 5: The hand is dealt

63. Provably Fair Gambling
Verifying the Cards Were Dealt Fairly
Step 1: The initial deck is laid out

64. Provably Fair Gambling
Verifying the Cards Were Dealt Fairly
Step 1: The initial deck is laid out
Step 2: You check that the initial deck was inline with the hash the site
provided

65. Provably Fair Gambling
Verifying the Cards Were Dealt Fairly
Step 1: The initial deck is laid out
Step 2: You check that the initial deck was inline with the hash the site
provided
Step 3: The final deck is laid out

66. Provably Fair Gambling
Verifying the Cards Were Dealt Fairly
Step 1: The initial deck is laid out
Step 2: You check that the initial deck was inline with the hash the site
provided
Step 3: The final deck is laid out
Step 4: You check that the initial deck was changed in accordance with
the seed you provided
If these are both the case then you have just played a provably fair hand!

67. Provably Fair Gambling

68. Provably Fair Gambling
Cautions
The odds don’t change: Fair in this sense does not mean an even chance
of winning, it means honesty and true randomness
Not end to end trustless: The site can still rip you off in other ways but
cryptography has an answer for them as well.
If you cant understand it is it really verifiable?

69. Trustless no Account Betting, 0% House Edge?
Step 1: Operator generates a bitcoin address for each bet selection

70. Step 1: Operator generates a bitcoin address for each bet selection
Step 2: Customers send bitcoin to the addresses as bets on the outcome
they represent
Trustless no Account Betting, 0% House Edge?

71. Step 1: Operator generates a bitcoin address for each bet selection
Step 2: Customers send bitcoin to the addresses as bets on the outcome
they represent
Step 3: Operator pays out winning bettors back to the address the bet
came from
Trustless no Account Betting, 0% House Edge?

72. Step 1: Operator generates a bitcoin address for each bet selection
Step 2: Customers send bitcoin to the addresses as bets on the outcome
they represent
Step 3: Operator pays out winning bettors back to the address the bet
came from
Step 4: Operator exists only as code automating the above steps
Trustless no Account Betting, 0% House Edge?

73. 0% House Edge Gambling
How is 0% House Edge Gambling Possible?

74. 0% House Edge Gambling
How is 0% House Edge Gambling Possible?
• Bitcoin eliminates most banking and finance costs

75. 0% House Edge Gambling
How is 0% House Edge Gambling Possible?
• Bitcoin eliminates most banking and finance costs
• Data feeds, bots, decentralised autonomous organisations, multi
signature transactions and provably fair gambling disintermediate risk
management, market operations and grading, public relations and other
functions

76. 0% House Edge Gambling
How is 0% House Edge Gambling Possible?
• Bitcoin eliminates most banking and finance costs
• Data feeds, bots, decentralised autonomous organisations, multi
signature transactions and provably fair gambling disintermediate risk
management, market operations and grading, public relations and other
functions
• Censorship resistant decentralised platforms such
as Tor, MaidSafe and Namecoin DNS remove the need for compliance
and cost burdens that come with it such as licence fees, taxes, know
your customer procedures and accompanying fraud

77. 0% House Edge Gambling
How is 0% House Edge Gambling Possible?
• Developers and entrepreneurs working on it for much less than current
casino executives. For the love of it, to innovate and stick it to the man or
for a venture capital land grab

78. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?

79. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”

80. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable

81. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising

82. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising
• Paid accounts for premium features

83. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising
• Paid accounts for premium features
• Leveraging users to cross sell other products

84. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising
• Paid accounts for premium features
• Leveraging users to cross sell other products
• Data selling

85. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising
• Paid accounts for premium features
• Leveraging users to cross sell other products
• Data selling
• Things we have not even thought of yet

86. 0% House Edge Gambling
How is 0% House Edge Gambling Profitable?
“If you are getting something for free on the internet you are the product
being sold.”
NB. Twitter has a $40b valuation and is not profitable
• Display advertising
• Paid accounts for premium features
• Leveraging users to cross sell other products
• Data selling
• Things we have not even thought of yet
• See social gaming companies such as Zinga

87. 0% House Edge Gambling
Gambling Will Never be the Same
• $3 trillion is gambled every year in the current paradigm where the
customers almost always loses

88. 0% House Edge Gambling
Gambling Will Never be the Same
• $3 trillion is gambled every year in the current paradigm where the
customers almost always loses
• When the customer gets just as much entertainment but usually breaks
even this will increase

89. 0% House Edge Gambling
Gambling Will Never be the Same
• $3 trillion is gambled every year in the current paradigm where the
customers almost always loses
• When the customer gets just as much entertainment but usually breaks
even this will increase
• Gambling will not be considered such a social ill

90. 0% House Edge Gambling
Gambling Will Never be the Same
• $3 trillion is gambled every year in the current paradigm where the
customers almost always loses
• When the customer gets just as much entertainment but usually breaks
even this will increase
• Gambling will not be considered such a social ill
• Bitcoin will take 2% of the gambling market within a year and 5% within 2
years

91. 0% House Edge Gambling
Gambling Will Never be the Same
• $3 trillion is gambled every year in the current paradigm where the
customers almost always loses
• When the customer gets just as much entertainment but usually breaks
even this will increase
• Gambling will not be considered such a social ill
• Bitcoin will take 2% of the gambling market within a year and 5% within 2
years
• 5% of $3 trillion is $150 billion, bitcoin current yearly transactions are $24
billion, suggesting a bitcoin price increase of 600% to $4000 from
gambling alone

92. More Information
Bitcoin Betting Guide
bitcoin-betting-guide.com
Videos
youtube.com/user/BitcoinBettingGuide/videos
Bitcoin Gambling Board on Bitcoin Talk Forum
https://bitcointalk.org/index.php?board=56.0

93. Bitcoin Gambling Questions
Questions?
“honestly sport betting with bitcoin has made this the most exciting NBA
playoffs season ever for me. It’s fun to be able to throw $15 on a parlay
and hope for a big win. I don’t usually gamble, and I never knew how to
get in touch with the local bookies in my area, but its freaking awesome
I can do this with bitcoin and gamble amounts I’m comfortable with.”
~Reddit User: LeTenken