Are NFT Casinos a Thing?

What Are NFTs?

Thanks to the incredible prices that digital art projects like the Bored Ape Yacht Club have achieved at auction, the term NFT has become synonymous with overvalued pixel art. This simplistic definition does not do the complex and incredibly useful blockchain identifier justice.

A non-fungible token (NFT) is a string of code that lives on the blockchain and certifies the authenticity and ownership of a blockchain record. As any record on the blockchain cannot be erased or forged, anyone who owns the key to such a record can claim to own the entry and prove that it is the original version.

This technology has only been used to store digital art, music, and digitized written works. Thanks to its “single point of ownership,” the key to these accumulated works can be sold, traded, or transferred, mimicking the ownership of tangible goods.

How Does An NFT Casino Work?

This ability to hold and transfer value has seen a small number of online gambling sites adopt NFTs as a form of currency. These NFT casinos allow the use of non-fungible tokens in the following ways:

Betting with NFTs

A new breed of crypto casino has begun to gain market share where rather than funding your account with crypto and using it to gamble, you can bet an NFT. These sites have started offering their own NFT projects, with unique add-ons and bonus boosts based on randomly applied features.

By betting with and on NFTs, there is the chance of winning a high-value asset like a Bored Ape Yacht Club artwork or even a CryptoPunks NFT. While these will not add any boosts to your gambling at the casino, they have their value on the open market.

NFTs as Bonuses

When depositing at an NFT casino, you can be rewarded with an NFT for making your first deposit. These NFT bonuses can take the form of the casino internal NFTs or free tickets, or free games where you can win an NFT without having to spend any of your crypto.

NFT Incentives

As these sites accept NFTs as a form of currency, often backed by the casino’s virtual token, they reward the players with special incentives when equipped as their avatars. An example is Rollbot NFTs which can trigger higher rakeback offers, increased revenue share payouts, lottery multipliers, and more. Each bonus trigger is based on the random features that comprise the NFT avatar.

NFT Withdrawals

The internal NFTs you win at an NFT casino cannot be withdrawn; they need to be sold or converted to the casino’s cryptocurrency and then cashed out to your Bitcoin or altcoin wallet. If you win a standalone art project NFT like a Bored Ape or CryptoPunks, those can be sold on an NFT marketplace like OpenSea, at which point the buyer would send your asking price to the wallet of your choice.

How Are NFTs Used in Casino Games?

NFTs have made several appearances in casino games over the years. Here are the most common use cases you will encounter:

Casino Game Inspiration

Before online casinos knew how to integrate NFTs into their games, they were used as the inspiration for creating online slots. Netent was the first casino software developer to do so with the 2021 release of the NFT Meqaways slot. The company purchased CryptoPunks NFTs and then used them to develop the 200,704 Megaways to win the title.

Core Game Elements

Web3 game developer Aviatrix took things further when they developed a customizable Crash game variant. Their version of the game sees you fly your own NFT airplane rather than the more familiar space rocket. The company announced its plans to open a marketplace where these NFT game pieces could be bought, sold, and traded.

Prizes for Playing

NFT casinos currently use non-fungible tokens as high-value prizes to incentivize players to enter lucky draws, try out new game releases, and even allow interested parties to spin to win an NFT that is up on the marketplace rather than buying it outright. The person who owns the NFT being played earns a commission on the revenue generated by would-be owners.

FAQ

How do I bet on an NFT?

Most NFT casinos will stake you the value of the NFT in the cryptocurrency of your choice. This is especially true of high-value NFTs worth hundreds of thousands of dollars.

How do withdrawals work at an NFT casino?

If you win an NFT, you will need to convert it into the casino’s local crypto if they have one or sell the NFT on a marketplace, in which case the buyer will send the price of the NFT to your wallet.

Are NFT casinos rigged?

NFT casinos are nothing more than crypto casinos with a twist. This means you enjoy the same speed, low costs, and secure online gambling.