Poker Site Buys $100 Million of Bitcoin Every Month to Pay Players in BTC

[TedMosby]

I wonder how a gambling website that accepts crypto can manage the cash flow.
because, they bought crypto for players' withdrawal, but when the market is crashing like now, they need to pay more in crypto.
even when the market is steady, there are always players that want to withdraw their money when the crypto price is down a little to get more in crypto.
yeah, I am one of those players.

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[AliMan]

Strange though,,, I thought bookies only pay out in the same currency that players deposit in, so would you not only be paying out Bitcoin from deposits? And since most casinos should be making their profits in deposits accepted, they should not be buying more BTC to pay out.

Or am I missing something in the picture here?

It depends on the casino that you are playing. There are websites the same as OP posted, that offer their players to choose the currency they want for their payout. And yes, casinos should be making their profits from the deposits so they shouldn't but BTC for payout, however, as per the article, gamblers are depositing using dollar deposits and choosing bitcoin when they withdraw.

Maybe this thing only applicable on casino's who newly shift on bitcoins that's why this buying thing always happened to them and I don't get surprise from this actually since I think this really happened especially when there winners hit the jackpot prize in some certain instance.

Nothing to be surprised with because gamblers had their options to choose, and I believed bitcoin nowadays is more dominant particular on several countries who really patronized digital currency. The real reason behind why most people prefers btc is that they can store it as an asset, it can be tradable when they want to divert their money aside from gambling. Potential growth is there of their btc holdings.

[livingfree]

I wonder how a gambling website that accepts crypto can manage the cash flow.
because, they bought crypto for players' withdrawal, but when the market is crashing like now, they need to pay more in crypto.
even when the market is steady, there are always players that want to withdraw their money when the crypto price is down a little to get more in crypto.
yeah, I am one of those players.

They have an allocated budget for it.

They won't just get in without having this scene on their mind. I'm sure that they have anticipated when the market is down or up, it's probably have been done through conducting simulations and test what will be the company's status and stand if something like this happens.

It's a matter of business and planning and they have set it on and have foreseen each situation even the uncaught ones to have a called action for it.

[jrrsparkles]

I wonder how a gambling website that accepts crypto can manage the cash flow.
because, they bought crypto for players' withdrawal, but when the market is crashing like now, they need to pay more in crypto.
even when the market is steady, there are always players that want to withdraw their money when the crypto price is down a little to get more in crypto.
yeah, I am one of those players.

They accept Bitcoin,they allow bets in bitcoin and they allows players to withdraw them in bitcoin then why they need to worry about the price increase interms of fiat value which is never going to get stable anyway.

[bonjouros]

https://www.techtelegraph.co.uk/poker-site-buys-100-million-of-bitcoin-every-month-to-pay-players-in-btc/

But I'm not surprised that gamblers are preferring btc as payout instead of fiat because of the rising price of bitcoin. I even watch one youtube channel about a women showing her win in a traditional base casino and she blurted out that his winnings are going into bitcoin. LMAO.

This only means that there are many players in their platform that prefers bitcoin cashouts because of the recent rally of bitcoin price, maybe they are hoping that their money will increase after they receive their cashouts.

But I am pretty impress that their volume is pretty huge, $100 million a month is quite huge knowing that it is only 60% of it's transaction. But I am pretty sure that this cashouts are now declining because the bitcoin price is starting to decrease now from $19k to almost $16k as of this moment.

[TedMosby]

They have an allocated budget for it.

They won't just get in without having this scene on their mind. I'm sure that they have anticipated when the market is down or up, it's probably have been done through conducting simulations and test what will be the company's status and stand if something like this happens.

It's a matter of business and planning and they have set it on and have foreseen each situation even the uncaught ones to have a called action for it.

yeah, I do believe everything is well calculated on their side. I just wondering how.

They accept Bitcoin,they allow bets in bitcoin and they allows players to withdraw them in bitcoin then why they need to worry about the price increase interms of fiat value which is never going to get stable anyway.

some gambling websites accept crypto as a payment method for deposit and withdrawal only.
they convert our crypto into fiat, we bet with fiat on their website.

for example:

1 BTC= 10 USD.
when we deposit 1 bitcoin, our account will be credited with 10 USD.

after a while, 1 BTC = 5 USD
when we withdraw that 10 USD, it will become 2 BTC.
the gambling site needs to send us more bitcoin.
CMIIW.

[daarul50]

Never eared about this poker network ever.
Created in 2019, no testimonial players. Never seen in an Event.

This will be a thing when Pokerstars or someone else like Partypoker/888 will do the same thing, these networks.


The poker rooms UI reminds me a lot of the dead FullTiltPoker.. 

That is gonna be the end of the world lol
Pokerstars had a very large community and i personally cannot imagine if this happened, i mean the demand will explode and push the price even higher.
They are accepting bitcoin via netteler so far , but it is a dream to see pokerstars jump into the crypto business. Make it happen someone please.
Could be 10 billion, 100 billion worth of bitcoin monthly to pay its player at pokerstars.

[FontSeli]

This is something new,

https://www.techtelegraph.co.uk/poker-site-buys-100-million-of-bitcoin-every-month-to-pay-players-in-btc/

But I'm not surprised that gamblers are preferring btc as payout instead of fiat because of the rising price of bitcoin. I even watch one youtube channel about a women showing her win in a traditional base casino and she blurted out that his winnings are going into bitcoin. LMAO.

This situation reminds me of a legal loophole to buy bitcoins using a poker site. Perhaps there are very favorable conditions for the purchase of bitcoins, so people can place their deposit on the site, play a few games and request a deposit withdrawal in bitcoins. Didn't you think so?

[Oshosondy]

This situation reminds me of a legal loophole to buy bitcoins using a poker site. Perhaps there are very favorable conditions for the purchase of bitcoins, so people can place their deposit on the site, play a few games and request a deposit withdrawal in bitcoins. Didn't you think so?

Did you mean depositing using fiats? That will be also included in some companies gambling sites in which you will be able to purchase bitcoin with fiat but it will only be good for people that are not concerned with privacy. I still like to make use of p2p ways and also noncustodial exchanges for bitcoin purchase. But if you are not privacy concerned, using credit card that the gambling site support is good. But as for me I prefer to deposit into the site directly using bitcoin or altcoin like ethereum and litecoin.

[Kelvinid]

I wonder how a gambling website that accepts crypto can manage the cash flow.
because, they bought crypto for players' withdrawal, but when the market is crashing like now, they need to pay more in crypto.
even when the market is steady, there are always players that want to withdraw their money when the crypto price is down a little to get more in crypto.
yeah, I am one of those players.

They have an allocated budget for it.

They won't just get in without having this scene on their mind. I'm sure that they have anticipated when the market is down or up, it's probably have been done through conducting simulations and test what will be the company's status and stand if something like this happens.

It's a matter of business and planning and they have set it on and have foreseen each situation even the uncaught ones to have a called action for it.

If we are into business or any business platforms, anticipating the coming events is very important to get prepared for. The owner/s of this site is doing a thing that might give them help in the future in preparation for the huge crypto adoption. They are accepting Bitcoin and to prove that they can pay their players if someone could win the jackpot, people could see also that they are holding a lot of Bitcoin in their wallet.

I didn't find it wrong with this action and this is a strategical way of anticipating the incoming. But what most gamblers are asking for is to see the transparency of the site.

[jaberwock]

What every month? these guys are amazing they really are contributing to the crypto market and it's not just them, I think the other industries such as casino gambling also do this to continue to supply their players with bitcoin. so that they won't run out any of it if someone hits the jackpot.

I would really wish this same feature was implemented on other casinos and sportsbooks too because like sportsbet.io is great but if I deposit via skrill then I can only make withdrawals in skrill and I wanted to buy bitcoins and withdraw for the same amount but it was not possible. I would urge other casinos to please also use these kind of services and you might charge the appropriate fees for the services.

people wonder why btc is going up?! $100 millions every month! It's a rising demand! And crypto gambling is just one of the industries, add all others!

Gambling is actually one of the biggest contributors for crypto volume if not the biggest contributor and I believe more than 50% transactions that happen in crypto comes from gambling or exchanges.

[FontSeli]

This situation reminds me of a legal loophole to buy bitcoins using a poker site. Perhaps there are very favorable conditions for the purchase of bitcoins, so people can place their deposit on the site, play a few games and request a deposit withdrawal in bitcoins. Didn't you think so?

Did you mean depositing using fiats? That will be also included in some companies gambling sites in which you will be able to purchase bitcoin with fiat but it will only be good for people that are not concerned with privacy. I still like to make use of p2p ways and also noncustodial exchanges for bitcoin purchase. But if you are not privacy concerned, using credit card that the gambling site support is good. But as for me I prefer to deposit into the site directly using bitcoin or altcoin like ethereum and litecoin.

What kind of privacy are you talking about? Most people in the crypto market pass KYC when investing in various projects or when trading on exchanges. So in this case, privacy is the last thing they care about. For them, a reliable platform for buying bitcoins is most likely important, and they found such a platform on a poker site.

[aioc]

If they are going to do this in a long haul then this is the best time to increase their purchase or acquiring of Bitcoin, the price has gone down 11% if they just set up a specific price in buying Bitcoin they are not going to save money, they should increase every time there is a dip, because in the future poker players will continue to ask for Bitcoin as payment and many poker player will likely participate because of Bitcoin payout.

[ReiMomo]

Despite a fact that the news is hard to believe, but somehow it could still bring a positive impact to bitcoins global adoption for more people will get intrigued about what is bitcoin and its value in the gambling world. Even those people who don't use bitcoins yet, but because of the enticing prize that WPN reported then these gamblers will be attracted and begin to adopt bitcoin.

With the huge amount of bitcoins that WPN publicizes as their winning prize every month, this can attract gamblers including those who don't have bitcoins to play in their sites and win at least a fraction of it and become new bitcoin investors, since the $100 million signifies that they are better in making their players win compare to other gambling sites.

[Saint-loup]

Despite a fact that the news is hard to believe, but somehow it could still bring a positive impact to bitcoins global adoption for more people will get intrigued about what is bitcoin and its value in the gambling world. Even those people who don't use bitcoins yet, but because of the enticing prize that WPN reported then these gamblers will be attracted and begin to adopt bitcoin.

With the huge amount of bitcoins that WPN publicizes as their winning prize every month, this can attract gamblers including those who don't have bitcoins to play in their sites and win at least a fraction of it and become new bitcoin investors, since the $100 million signifies that they are better in making their players win compare to other gambling sites.

It's not really hard to believe in fact, Bitcoin has been related to Poker and gambling since almost its beginning and many traders are former poker players. I don't know why but it's a fact. Maybe it's because Bitcoin is like a big gambling game or maybe it's because gamblers are accustomed to tokens, I don't know.

[Ryker1]

Despite a fact that the news is hard to believe, but somehow it could still bring a positive impact to bitcoins global adoption for more people will get intrigued about what is bitcoin and its value in the gambling world. Even those people who don't use bitcoins yet, but because of the enticing prize that WPN reported then these gamblers will be attracted and begin to adopt bitcoin.

Well, I believe that it is only an advertisement that aims to attract more players especially those from the bitcoin community. They intend to announce this publicly which they can do ^{[hitting two birds with one stone]}. First, -- people would know that aside from the fact gamblers who have bitcoins and will play on their poker sites may grow their bitcoin asset if they win in WPN. Second, -- they wanted everyone to know that they are gallant when it comes to prizes and they often make their players a winner. If WPN accepts bitcoin deposit as payment then it will be added on top of the $100 million worth of bitcoin because perhaps they would rather use the bitcoins that they gathered as payment first, before buying outside that will make it more than a $100 million of BTC prize every month.

[acroman08]

This is something new,
-snip

https://www.techtelegraph.co.uk/poker-site-buys-100-million-of-bitcoin-every-month-to-pay-players-in-btc/

But I'm not surprised that gamblers are preferring btc as payout instead of fiat because of the rising price of bitcoin. I even watch one youtube channel about a women showing her win in a traditional base casino and she blurted out that his winnings are going into bitcoin. LMAO.

although I kind of expected that they would be buying millions worth of bitcoin I never expected it to be that much. and yeah, the gamblers are taking the advantage with the rise of bitcoin and it is smart of them to do that.

anyway, do you have a link for the vid?

I'm wondering if they are still making money and why they are out of supply of Bitcoin considering that there should be an inflow of Bitcoin since many gamblers are losing their money.

Correct me if I'm wrong but at least the excerpt of the article quoted in the OP does not say that gamblers are using Bitcoin in playing poker. They are making dollar deposits to the site and played with it but then demanded that the payouts be made in Bitcoin. So I guess there is no Bitcoin inflow and the site is earning in dollars and then use a portion of it to buy Bitcoin for their patrons' payouts.

I'm under the impression that this is a fiat based poker site, but what I don't understand if my assumptions is correct is that they allowed their patrons to withdraw in bitcoin as well? Doesn't make any sense if they allow don't allow bitcoin deposit but instead fiat only.

I still think that they can still make revenues though, this is gambling, so if they can buy $100 millions worth of bitcoin every month they obviously their revenue is more than that.

according to the article, I've read, the poker site has been supporting several cryptocurrencies since 2014 and they are accepting bitcoin since then. so yeah, they can allow the gamblers to withdraw in bitcoin.

anyway, if anyone is interested here's the full article reported by Bloomberg regarding WPN(winning poker network).
https://www.bloomberg.com/news/articles/2020-11-19/poker-players-are-enhancing-winning-by-cashing-out-in-bitcoin

[Hippocrypto]

If they are going to do this in a long haul then this is the best time to increase their purchase or acquiring of Bitcoin, the price has gone down 11% if they just set up a specific price in buying Bitcoin they are not going to save money, they should increase every time there is a dip, because in the future poker players will continue to ask for Bitcoin as payment and many poker player will likely participate because of Bitcoin payout.

This is most exciting since bitcoin had gone so high several days ago, and that's expected that demand will soon arise rapidly. Poker players seen a good opportunity for this while there's a fluctuation of btc price, they're not just playing to gamble but also trading at the same time. If they continue to patronize bitcoin as their mode of payment, that's really a good factor to strengthen bitcoin price momentum.

[just_Alice]

Despite a fact that the news is hard to believe, but somehow it could still bring a positive impact to bitcoins global adoption for more people will get intrigued about what is bitcoin and its value in the gambling world. Even those people who don't use bitcoins yet, but because of the enticing prize that WPN reported then these gamblers will be attracted and begin to adopt bitcoin.

Well, I believe that it is only an advertisement that aims to attract more players especially those from the bitcoin community. They intend to announce this publicly which they can do ^{[hitting two birds with one stone]}. First, -- people would know that aside from the fact gamblers who have bitcoins and will play on their poker sites may grow their bitcoin asset if they win in WPN. Second, -- they wanted everyone to know that they are gallant when it comes to prizes and they often make their players a winner. If WPN accepts bitcoin deposit as payment then it will be added on top of the $100 million worth of bitcoin because perhaps they would rather use the bitcoins that they gathered as payment first, before buying outside that will make it more than a $100 million of BTC prize every month.

You're probably right about the advertisement, however, it doesn't mean that this news isn't true. First of all, I think they wouldn't mind acquiring btc themselves, considering its rapid growth, as it might attract new customers. Second of all, it says in the article that

people are asking for bitcoin

and where there's a demand for something on the market - there will always be a competition, so if WPN doesn't comply with the wishes of customers - there's a possibility that many of them will switch to another network, which allows deposits and withdrawals in bitcoin.

[shoreno]

Despite a fact that the news is hard to believe but because of the enticing prize that WPN reported then these gamblers will be attracted and begin to adopt bitcoin.

Well, I believe that it is only an advertisement that aims to attract more players especially those from the bitcoin community.  they wanted everyone to know that they are gallant when it comes to prizes and they often make their players a winner. If WPN accepts bitcoin deposit as payment then it will be added on top of the $100 million worth of bitcoin because perhaps they would rather use the bitcoins that they gathered as payment first, before buying outside that will make it more than a $100 million of BTC prize every month.

that 100m dollar worth of btc they are talking about is not a prize for thier site but they use it to pay their costumers . its not an advertisement and it was also legit because the gambling site is one of the biggest .

thats why its normal to have a payment like that because of the number of thier users that use a btc . the pandemic and the pump of btc price makes online gambling more a hit . for the prize , prizes depend on the players ability to bet but 100m usd is too much for a single prize and probably wont be allowed due to sites max bet limit