Also read: Bitcoin Will Revolutionize Gambling
The gambling company, in business since 2005, said that the choice of the virtual currency was mainly made on financial considerations. Indeed, recent legislative developments in the United Kingdom are suggesting the appearance of a new 15% tax named “point of consumption tax” which would be applicable on every online betting transaction.
Although this tax will also be applicable to transactions denominated in Bitcoin, resorting to the cryptocurrencies allows Cozygames to make savings on items such as bank transaction fees or international transactions costs. Their cost reduction will be “dramatic” according to Steve Beauregard, co-founder and CEO of GoCoin.
The adoption of an international currency such as Bitcoin will also allow the company to reach new markets where banking partnerships are usually expensive and the regulatory background complex:
“By accepting cryptocurrencies through the GoCoin payment platform, regulated online gambling operators can engage new markets like the underbanked that are historically difficult to reach,” said Mr.Beauregard
He also added that GoCoin is working with regulators in order to provide clear guidelines that guarantee privacy in accordance with existing laws. Gocoin already implements KYC technology solutions on its platform, in order to meet the regulators’ requirements about client identification.
This is another success for the bitcoin processor that was notably added back in September as a processing partner in PayPal’s agreement with two others competitors: Bitpay and Coinbase. The California-based company draws its strength in the fact that it is one of the few payment processors that also offers Litecoin and Dogecoin payment collection.
What do you think about online gambling and Bitcoin? Comment below!
Images from Shutterstock.