We’re entering a new age when it comes to finance. Cryptocurrency and NFTs have changed the game already, and as well as allowing new ways for people to pay for goods and services, blockchain technology is also allowing for new business models.
The transparency of crypto means that there are some opportunities for consumers that wouldn’t necessarily have existed before. A lot of businesses are finding new ways to change the game, and the casino industry has been one of those that is quick to innovate.
One of the ways that casinos are innovating is through an extra incentive to players. This comes in the form of shared profits casino sites, which is effectively a way to reward the loyalty of customers.
What is a Shared Profit Casino?
A shared profit casino is simply one that allows people the opportunity to invest in their site and the business itself, with the prospect of potentially getting rewarded if the casino performs well.
A little bit like owning stocks and shares, at the end of the financial year, shared profit casinos provide dividends to their players or investors.
All of the different shared profit casino brands on the market have a slightly different way of doing things, but the key concept is that they provide some form of share of the money made.
The thinking behind it is that if people support the casino and it does well, they’ll be entitled to some of the money that they make.
How Does it Work?
This is not the same as heading to a stock exchange app and buying and selling some shares, so it takes a little bit of explaining.
It is also worth pointing out that there are different variations in the way the companies do things, so what one company is offering, won’t be identical to another. Read the fine print and contact the company if you want to know the exact details.
However, it usually works like this.
The casino or betting company in question has its own “house token” and people are able to buy into this. It uses a decentralized protocol and this means that it can allocate shares using blockchain technology. Crypto casinos can reward the holders of the native coin or house token they offer.
This token might be available to buy directly from the casino, which is almost exactly the same as the method used to buy stocks and shares. People simply pay for the token and hold it in their account. At the end of the financial year, if the casino has made a profit for that year, they need to share these profits as dividends based on who holds the token.
Another method that people use to gain the token or house coin is to play the games. Many of the casinos offering shared profits reward their players with the token, a little bit like mining for other cryptocurrencies. So, they may be rewarded based on how much they play and stake with the casino.
How are the Earnings Paid?
Different casino companies have their own ways of allocating the dividends that they offer. They may also have different financial cycles, with some paying the dividends monthly, and others paying them yearly. Often, they will be paid directly into the betting account, but there are variations to this rule.
There isn’t one set rule for paying dividends, so it is important to check with individual casino brands.
What About Taxes From Shared Profit Casinos?
The tax situation depends on where in the world you are based and what the laws and rules are on crypto earnings in your locality. However, there are a couple of things to keep in mind, including
- In most places, the earnings on any asset, such as cryptocurrency and native coin from a casino, are taxable. This means they need to be declared and tax must be paid on the dividends.
- It is usually your responsibility and yours alone to make sure you pay what you owe, meaning you need to stay on top of the tax laws.
Every country has its own way of handling taxes, and in some countries, the tax you pay may even be different based on the state or location you are in. In the US, the IRS is responsible for taxation and you can check their handy guides for paying your taxes.
Is This an Investment Opportunity?
There are plenty of risks involved with casinos and crypto casinos, so nobody is suggesting you put your life savings into them. However, it is possible for people who already play games at online casinos to get some extra rewards by earning native coin while they play.
If players already use online casinos, then they may choose to switch to one that provides them with a reward in the form of revenue sharing when they play.
In terms of buying the token or native coin, this is an individual decision that each individual should make if there is an opportunity.
This doesn’t work in the same way as buying and trading cryptocurrencies, for which you would use an app like Coinbase. Instead, everything is handled directly through the casino’s website.
What Games do Shared Profit Casinos Offer?
A lot of people think that these casinos are different, so they must offer a different standard or style of game.
In reality, the same kinds of games are available through many of the shared profit casinos that we see on any other type of casino site or app, from online bingo to baccarat, roulette, and more. Players who have been improving their poker skills may also find that some shared profit casinos offer the chance to play poker in either cash games or through tournaments.
Benefits of Shared Profit Casinos
There are numerous benefits and promises made to customers who invest in these shared profit casinos.
Though very few of them claim to provide life-changing money, for people who are already using crypto casinos or gambling on casino brands, it is possible that they may think about this as a way to invest and get a share of the profits.
Of course, the dividends being paid into your account are usually the number one benefit for people who choose shared profit casinos, but there may be some others.
Some shared profit casinos offer additional bonuses and VIP programs to users who have taken the next step and invested in the casino, buying their native coin. Pretty much every casino offers some form of bonus, and shared profit casinos are becoming more creative with their methods.
Shared profit casinos may also be appealing to those who are already gambling, as they may as well take advantage of the extra reward in the form of dividends.
This is also an opportunity for those who are interested in the gambling industry to potentially get involved at an early stage and be involved with some pretty large companies. Some shared profit casinos have made quite a name for themselves already, with some sponsoring top-tier football teams, for instance.
The industry is growing, and even more locations are regulating the casino industry, meaning a chance to get involved with a flourishing industry.
Risks Associated With Shared Profit Casinos
There are some risks involved with any form of investment. In terms of shared profit casinos, it is recommended to only be involved at a modest level and to be responsible, just like every other aspect of your gambling.
The risks include the fact that there is very little regulation for this type of business yet. When more regulation is introduced, it could change the way things operate, plus, not having a lot of legislature may leave people vulnerable. This can make it harder to find and choose a trustworthy shared casino.
Of course, shared profit casinos don’t have a guaranteed profit, so there is a chance they won’t actually make any money at all. Though you may hold some of the native coin, it isn’t guaranteed that this will be worth anything or worth any dividends at the end of the tax year. Plus, it may not have a value to trade on.
Gaming products and casinos can be a volatile investment, there’s no denying this, which is why it shouldn’t make up the whole portfolio. For casual gamers, this may just be a way to potentially gain extra rewards for their loyalty to a casino.
Shared profits are just one of the ways that casino brands have innovated in recent years. Cryptocurrencies mean that the way finances are handled in the casino industry is now very different.
There is risk involved with getting into shared profit casinos, but as long as people do so responsibly and know that there aren’t guarantees with this kind of deal, it can be a good way to reward customers and help to create more of a community within a gambling site.