Mt. Gox CEO Charged by Japanese Authorities
17 September 2015
At one point in time, about four-fifths of all bitcoin exchanges were handled by Mt. Gox, then the top exchange by far for bitcoin transactions. Having what seemed to be such a solid operation taking over such a large portion of the market helped the cryptocurrency to gain a lot of attention with huge fluctuations in its value. This all came crashing down when the Tokyo-based company was accused of fraud and a number of other crimes.
Details on the Charges
Japanese authorities have charged Mt. Gox CEO Mark Karpeles with embezzling an amount of bitcoin worth around £1.7 million. The alleged fraud was a major reason why the value of bitcoin crashed, and this affected tons of people who had speculated in the cryptocurrency after big spikes in its value. A spokesperson from the Tokyo Police has commented that Karpeles is being investigated in a number of related incidents including about $390 million of the currency mysteriously disappearing last year.
How this Affected Online Gambling
Lots of people believed that bitcoin could be a savior for the online gambling industry because there is always a chokepoint when it comes to deposits and withdrawals. Many parts of the industry have taken big hits in the past because payments were shut down, and bitcoin was thought to be a possible remedy to that situation because of its anonymous nature and the difficulty in policing it. However, the big crash that came after the Mt. Gox scandal really hurt that whole movement, and the big drop in bitcoin value that came afterwards really shook the confidence people had in it.
How Bitcoin is Used in Today's Industry
Today, many sites offer bitcoin deposits and withdrawals. However, few of them actually have their players keeping a balance in bitcoin. Instead, the cryptocurrency is converted to another currency, often US dollars, upon deposit. When a withdrawal is requested, it can be requested in bitcoin, and the player will be given bitcoin based on the current exchange rate.
The reason for this approach is that the value of bitcoin can change a lot while it's just sitting in a casino account, and this can often be a bigger gamble than playing the games themselves. This approach helps to retain the advantages of bitcoin while minimizing the variance that players experience from the fluctuation of the value of the cryptocurrency itself.
01 February 2017US Attorney General Pick Sessions May "Revisit" Online Gambling
One of the most important pieces of legalese that has come down in the United States for online gambling in the United States was a 2011 opinion about the Wire Act of 1961. The Wire Act was previously used as evidence that online gambling is illegal in the United States (and is the other major US law affecting online gambling from the UIGEA).Read full article
15 January 2017Bingo Billy Offering $15,000 Jackpot Party
Bingo Billy is looking to help players start off the year on the right foot, and they're doing this with a big game this weekend. A $15,000 jackpot game is up for grabs in the Jackpot Party Room on Sunday, and it'll run from 8 pm through 12 at midnight. There's a jackpot every hour during this time period, and you'll see Everybody Wins games during this four-hour period as well. Overall, it's a pretty serious promotion and a chance to get in on the action with some online bingo. The Final GameRead full article
10 January 2017Virtual Reality Online Casinos in 2017
If you go back a couple of years, Microgaming was the first company to present a virtual reality casino game that included current technology. It was a roulette game shown at industry trade shows, and it got a tremendous reception. A lot of players thought that smartwatch apps were going to be the next big thing for the online casino industry, but instead, it's virtual reality, or VR for short. How VR Online Casinos Work There are two main components of a virtual reality casino.Read full article