By Jon Matonis
Tuesday, January 22, 2013
First up is the venerable SatoshiDice,
which is the leading bitcoin gambling site in terms of amount wagered.
Responsible for more than 50% of daily network volume on the Bitcoin
blockchain, SatoshiDice reported
first year earnings from wagering at an impressive ฿33,310. During the
year, players bet a total of ฿1,787,470 in 2,349,882 individual bets at
an average monthly growth rate of 78%. Earnings were calculated from
eight months of data covering May to December, 2012.
With servers based in Ireland
and promoted by Erik Voorhees, SatoshiDice is considered a
blockchain-based betting game and it is self-described as the "most
popular Bitcoin game in the world." Similar to random number generation,
the site uses a method to produce a number between 0 and 65,535 which
is then wagered on by making a bitcoin transaction to one of the static
addresses representing different payouts. The odds are calculated to
give the house an edge of 1.90% with full transparency because all dice
rolls and earnings statistics are verifiable using the blockchain.
expenses were minimal in 2012 and the company also paid monthly bitcoin
dividends to 'public' shareholders which represent 10% of the total
100,000,000 outstanding shares. To invest in the operator and bet on the house, SatoshiDice shares are traded on the MPEx bitcoin stock exchange under ticker symbol S.DICE (see August 19th, 2012 Prospectus). At the current exchange rate of $17.00 per BTC, SatoshiDice is a company valued at $8.9 million.
that until the site's legal status is clear, all balances and
accounting will be maintained in play-money bitcoin, because "it’s
better to keep it completely separate from real life." For all of the
venture capitalists out there, here is how SatoshiDice started. Where is the next big one?
Provably-fair bitZino, covered previously
in this column, offers blackjack, video poker, roulette, and craps in a
bitcoin-only environment. When roulette was launched it quickly rose to
become the top bitZino game, leveling off now to become equal with
blackjack in terms of hands played. In an email to Forbes,
BitZino reported first year earnings from wagering of ฿10,137. During
the year, players bet a total of ฿664,192 in 3.2 million individual
bets. Earnings were calculated from seven months of data covering June to December, 2012.
inception, unique user count went from 3,086 in June to 8,737 in
December, which represents a period growth rate of 183% or average
monthly growth rate of 30.5%. Earnings during that same time went from
฿326 in June to ฿3,240 in December, which represents a period growth
rate of 894% or average monthly growth rate of 149%. Owner Larry Taad expects a 500% increase in these user count and earnings numbers for 2013.
trends noticed by bitZino include near daily cash-outs from players on
the site which simply would not be possible with other payment methods
and an astounding payment processing fee of just 0.0031%.
Seals With Clubs
is an innovative and friendly bitcoin poker site launched in August
2011 by a small team of former online poker players. Choosing to remain
anonymous, they happily accept players worldwide and all cash-ins and
cash-outs are denominated in bitcoin so no bank accounts are required
and even your email address is optional. Poker Mavens by Briggs Softworks provides the gaming software for the site. Seals affiliate manager and site pro is the enthusiastic Bryan Micon, who said "with the upcoming release of our Android app we hope to explode the BTC poker space in 2013."
confirmed that the company has paid out ฿110,587 over 7,972
transactions in the 16 months since their opening. They have over 10,600
player accounts with 5,697 of those logging in since October 1st, 2012.
Typically, their busiest game time is 7-11pm EST and 972 types of Sit'N Go tournaments are also available. Players can open custom ring games and December brought in 1,000 unique players to at least one raked hand.
With game servers based in Iceland,
Seals With Clubs is dealing about 10,000 hands of poker per day and
raking only about 4,000 of them. If it is a tournament hand, no flop
dealt, or below ฿0.04, then there is no rake. The current rake is 2.5%
with a cap of ฿0.10 per hand which is slightly less than half of what
other poker sites would charge.
Conservatively assuming that only
5% of the raked hands get to the maximum rake, then Seals With Clubs
would be earning at least ฿20 per day on 4,000 raked hands dealt (or
฿600 per month on average). The operator does not make details available
down to that level so we have no way of knowing with certainty.
However, they do give a generous share of their rake back to high volume
players and to others indirectly via freerolls and other promotions.
privacy, efficiency, growth, payment irreversibility, and cost savings
as demonstrated by the above, it's only a matter of time before the
mainstream casino operators of Gibraltar and Malta realize the benefits of a gaming economy that leverages the ideal digital casino chip.