- Details
- By Josh Spanninga, Special to Tribal Business News
- Gaming
The Choctaw Nation’s gaming operation has rolled the dice on cryptocurrency, launching a new service that converts cryptocurrency to casino chips without gamblers ever having to leave the gaming floor.
Choctaw Casinos and Resorts became the first brick-and-mortar gaming operation in the U.S. to directly integrate cryptocurrency transfers into its payment systems, allowing patrons to convert digital assets into casino chips without using ATMS or third-party walleting systems.
The system, launched in early March at the tribe’s Durant, Okla. casino, connects a cryptocurrency platform run by Miami-based Bitline with a cash payment system operated by Las Vegas-based Everi.
“There's never been a direct integration into a land-based casino or an online casino that's ever done a transaction in this format where there's a direct connection with the payment provider as well as with the actual venue itself,” Richard Jones, CEO of Bitline, told Tribal Business News.
(L-R): McDonald, JonesWhile some casinos have experimented with cryptocurrency ATMs on or near their gaming floors, and third-party digital wallet systems systems exist for moving crypto assets, Jones said these solutions require additional steps. Choctaw’s implementation is groundbreaking because it creates a direct connection between the patron’s digital assets and the casino’s payment system.
Here’s how it works: Patrons download the Bitline app, which provides a crypto wallet for digital asset transfers. Bitline then conducts a rigorous review of the blockchain and scores the assets using tools similar to those employed by federal agencies to ensure compliance with Know Your Customer (KYC) regulations.
“What's happening underneath the engine is an extraordinary amount of compliance and an extraordinary amount of us checking the actual transactions, where they came from, and their history,” Jones explained. “We’re making sure the funds that are coming into this particular industry specifically are completely kosher and acceptable.”
After the casino credit team approves the transaction, patrons receive a QR code through the app that they present to the cage cashier. The cashier uses Everi’s Cash Club payment system to process the transfer and issues a voucher that guests can exchange for casino chips.
The entire process can be completed in a matter of minutes, Jones said, and offers lower fees than traditional banking, 24/7 fund access, and avoiding hard credit pulls associated with casino credit applications.
“Anything we can do to give guests other options to access funds is a win,” Thomas McDonald, senior director of cage and credit at Choctaw Casinos and Resorts, told Tribal Business News.
The service currently accepts four cryptocurrencies: Bitcoin, Ethereum and the stablecoins USDT (Tether) and USDC (Circle). Each transaction can remain open for up to 30 business days, with the dollar value of the cryptocurrency locked at initiation. Bitline has implemented buffers against sharp cryptocurrency value drops, Jones said.
Since the inaugural transaction took place on March 7 at the tribe’s Durant casino, only a handful of guests have used the service. Even so, McDonald remains optimistic about the service’s potential, particularly given the casino’s proximity to the Dallas-Fort Worth Metroplex.
“The DFW Metroplex is the main feeder market for our Durant property, and crypto has been really widely adopted there,” McDonald said. “This gives us an opportunity to give them some other way to play.”
Jones anticipates the service will initially attract higher-end clientele who are already well-versed in cryptocurrency, but expects broader adoption as digital assets become more mainstream. “Little by little, as this becomes more mainstream, my opinion is that you'll see the user base also diversify across from what it's traditionally been.” Jones said.
There’s already a strong interest in using cryptocurrency in online gambling. A 2023 YouGov survey found that 49% of US consumers with online gambling accounts express interest in using cryptocurrency for wagers. Additionally, the 2024 Casino Global Market Report projects more than $30 billion in industry growth by 2028, partly due to cryptocurrency casinos.
While cryptocurrency regulations vary by state, lawmakers in Oklahoma appear to be embracing digital assets, having recently passed the Strategic Bitcoin Reserve Act allowing state savings accounts and pension funds to invest in cryptocurrencies.
McDonald said other gaming companies throughout the industry have been reaching out with questions about the subject. “It's good to see that there are a lot more people in the business now who are curious about it and looking to see if it will work for them.”