Can someone explain the trend of bitcoin casinos creating altcoins ?

[piloder]

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

I think its just a greed from the casino owner, anybody who don't have enough cash to start their own casino now can issue tokens based on ETH and collect whatever amount they want to first build their platform so that they can run it in future. If the owner runs without developing anything than all investors will be f### up.

To be in safe side, never invest in such ICO which doesn't use escrow with proper fund release terms.

[hatshepsut93]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

We're currently witnessing the ICO hype, it has cooled down a bit when alts crashed 2-3 times, but it still has a lot of momentum. In this hype everyone is launching ICO's - startups, casinos, exchanges, other services, etc. Many of those ICO's are just plain scams, others eventually just fail to deliver. ICO's created a loophole that allows its creators to avoid any responsibilities, as they can always claim that they can't control the open market and it's not their fault that their token is falling. So, yes, it's better to stay away from ICO's unless you definitely knows what you are doing and know how to play those markets. There are plenty of casinos who accept regular Bitcoin investments, and it's relatively safe to stick with them and get some constant profits.

[Catmony]

Might be they are just trying to cash in ICO boom we are seeing every day, even a small project is collecting millions of dollar in crowdfunding without delivering anything upfront.

I personally don't think this form of ICO will be stable in future and we might not see any profit sharing like they have promised from many of those casino in future.

[Hydrogen]

AFAIK facebook and other IT based platforms rolled out their own digital currency years ago.

Bitcoin casinos are only following trends set by facebook and other web platforms utilizing their own proprietary digital currency.

[images]

maybe they need held ICO for make their gambling site better
but it's good for investors at ICO too they will get divided profits from their casino

[kodes88]

I guess the main reason is to be able to pay rakeback or loss back or affiliate rewards without actually spending money.

It's pretty smart acutally, especially if they do a profit share based on how many of their tokens you hold.

yup,its why casino site always rich,keep long life and have many users,they create new way to close their loss with profit from another program beside betting,they create altcoin to pay it,so they keep earn profit,and not only casino,exchange like yobit also do same way.

[erpbridge]

maybe they need held ICO for make their gambling site better
but it's good for investors at ICO too they will get divided profits from their casino

Doing the math behind operations and the commisions they have been charging, it should be more than enough for a good pay plus any pay for running the day to day operations. I don't think thats the sole reason behind it.

[el kaka22]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

Anything cannot be scammy as long as there will be no breach of agreement !

They have the edge with ICO over any other methods for raising funds for their what ever needs in the name of market fluctuations. If they want to raise more they will start bumping their own coins and if they want to cash out they will dump into bitcoins still you cannot blame anyone for those fluctuations.

After profit sharing programs, now it seems era of issuing new trade-able tokens in the name of new altcoin project and achieving what they were actually doing in the name of profit sharing programs. New trend, decisions on its fate might need long run.

[audaciousbeing]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

It actually depends on how you see it. Most people who are interested in invested their money, don't want to bother about what the site is going to use it for so far the site is known, the only question  they are bothered about is when will it be listed on the exchange and how they can push it on poloniex so the price will increase and they dump nothing more nothing else. Whether the site now keep the money and fail to develop what they intended to a large scale, no one cares and no one holds them responsible. So, they continue to have their way. Its unfortunate but its the situation of things.

[tsaroz]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

It actually depends on how you see it. Most people who are interested in invested their money, don't want to bother about what the site is going to use it for so far the site is known, the only question  they are bothered about is when will it be listed on the exchange and how they can push it on poloniex so the price will increase and they dump nothing more nothing else. Whether the site now keep the money and fail to develop what they intended to a large scale, no one cares and no one holds them responsible. So, they continue to have their way. Its unfortunate but its the situation of things.

There are different type of them.
1. Site/s like betking.io are doing a fundraiser for the construction and bankroll of the site and they are using tokens as stocks. They would handle both in and out payment on bitcoins while their internal transfer may be tokens.
2. Alt coin based sites like Dao casino are also using ICO of their ether based token as fundraiser. They are advertising with some reputed people but they can't be evaluated early. They might use their coins in both in and out transfers.
3. There are many so called gambling sites that have used the term ICO of Token to lure fool people to buy their worthless tokens. Which are a total scam.

[michkima]

Well I just finally got how it works, sort of.
Their ICOs are ethereum tokens where if the sites profits they would have a smart contract that would distribute the profits to their investors/coin holders.
It is really like stocks, where the corporation distributes their profits through dividends and the stocks can be sold depending on how well the corporation is doing.

[shine1123]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

I don't think it will be scammy if the gambling site already popular such betking and bitdice. Do you see Betking ico ? They almost complete their ico on pre-ico, i'm sure that's make other gambling site want to try like that, it such an easy money for the dev though. But yeah, if both ico success, i'm sure it will be more next.

[KennyR]

ICO's were a platform for multiplying their profits. Already those gambling websites were highly profiting and ICO implementation will multiply their usage, in specific by the coming days if the ICO gains good value they'll be easily promoted through the gambling houses as the accepted token for gambling. This increases the circulation and causes further growth.

[raven7886]

I guess the main reason is to be able to pay rakeback or loss back or affiliate rewards without actually spending money.

It's pretty smart acutally, especially if they do a profit share based on how many of their tokens you hold.

yup,its why casino site always rich,keep long life and have many users,they create new way to close their loss with profit from another program beside betting,they create altcoin to pay it,so they keep earn profit,and not only casino,exchange like yobit also do same way.

This is actually a smart move that the casino owners take to tackle their losses and to earn more than the regular earnings. This not something bad to the customers and even they get a chance in the alts if the price of the given alts increases their net worth increases at the same time when casino is getting benefits from the alts. I think we should appreciate the casino for innovation of such activities.

[marlboroza]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

Lack of money perhaps?
They don't accept bitcoin as investment because they need money to build something or upgrade their casino, add new games etc etc and they can't really take money from investors and do that.
When they launch tokens and do crowdsale they can.

[erpbridge]

Yes these are examples I am talking about. Yeah plans and all look good but why not just accept investments the usual way ?

Like you I also thought about why not the usual way, and I will try to explain my opinion.
Before you invested in site and that is all, there is a tracker how much you invested your percents in profit and loss of the casino and that is probably all about it. But on other side with altcoin, which is actually investment in casino bankroll, you can trade on exchanges yes? As I understand their tokens will be traded as stocks and that can make this alt even more valuable.
I`m not sure am I close to something, or this is just some stupidity.

That actually brings up one more question. Can I divest ? Because the only way I see divesting can happen is if someone happens to buy my share of investment by buying into my tokens. And if no one buys at that price, would I be stuck holding onto the tokens or be at a loss ?

And as for your main point, how does exchange my investment on an exchange bring any extra value ?

[Skarner21]

ICO's were a platform for multiplying their profits. Already those gambling websites were highly profiting and ICO implementation will multiply their usage, in specific by the coming days if the ICO gains good value they'll be easily promoted through the gambling houses as the accepted token for gambling. This increases the circulation and causes further growth.

And also is just a help i think just to promote their ICO this is a new way to promote ico because mostly the use of altcoin is for gambling activity only . other use of altcoin i don't see any other use of altcoin  except for well know altcoin that actually using payment method in some business online..
So those ICO who release and use in gambling like you said its profitable from them and increasing the use of ICO to their business.

[coinplus]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

It actually depends on how you see it. Most people who are interested in invested their money, don't want to bother about what the site is going to use it for so far the site is known, the only question  they are bothered about is when will it be listed on the exchange and how they can push it on poloniex so the price will increase and they dump nothing more nothing else. Whether the site now keep the money and fail to develop what they intended to a large scale, no one cares and no one holds them responsible. So, they continue to have their way. Its unfortunate but its the situation of things.

It truly depends on the way you look to it. It is at the same time an opportunity for the website users who after listing it on exchange can get profit from it with the same time involving them in a risk if the token don’t work and don’t stand at the desired position can be a reason to push them away. If it is continuously practice of the casinos then it could take the use in a horrible condition.

[lite]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

Because they need money to hire developers, for promotion etc.. i think ico is a good idea to do that. even bitdice is going for ico, because they need more money for development and promotion.

[erpbridge]

Till date all the casinos which have wanted to raise money or have an invest feature used to do it by launching a casino accepting investments in bitcoins and charging a commission on bets.

But now I see casinos like  creating an altcoin, accepting investments and issuing tokens to be traded on an exchange and keeping all the money raised upfront in the ICO.

Isn't that scammy ? Why can't they just accept bitcoins as regular investments ?

Because they need money to hire developers, for promotion etc.. i think ico is a good idea to do that. even bitdice is going for ico, because they need more money for development and promotion.

They can still run all those promotions and hire staff with the commision money easily. From what I remember casinos like these make close to 100 bitcoins in just a matter of months. That should alone be enough to sustain all the expenses.