SmartPlay.tech, Gaming Holding, Signs Blockchain Equipment Supply Contract
SJM Holdings and European game developers, SmartPlay.tech, have finalized their cooperation, which can completely revolutionize the gambling industry. The cooperation between the two parties here looks promising, as introducing the blockchain in gambling machines has shown multiple advantages that were previously unprecedented.
According to HK01 (Hong Kong media), SJM Holdings Limited, one of the largest management companies in the Chinese gaming industry, and SmartPlay.tech developers, discussed the possibility of implementing their blockchain platform into the existing gambling and slot machine software. Such a partnership might be a win-win option, which could benefit private casinos, and also the gambling industry as a whole.
“Our corporation has been exploring such possibilities since the early 2017,” said Wei Huand, Macau’s Gaming Business Development Manager. Our key client market research has revealed that the introduction of cryptocurrencies in gambling not only makes the service more attractive, but also contributes to the reduction of agent charges and optimizing internal processes. SmartPlay.tech has an extensive experience in the field of developing blockchain solutions and integrating its advantages in the software space.
Huand noted that due to the increased tightening of the requirements for the cryptocurrency market by the Chinese regulatory authorities, the corporation was forced to suspend negotiations with the developers. However, it has now become possible to finally implement the agreement on joint cooperation.
Earlier, SmartPlay.tech announced the launch of the world’s first blockchain-based slot machines, called SmartBox. Its first generation is a high-tech sensor table which may include a cash acceptor.
SmartPlay.tech also has its own crypto-token called RouletteToken (RLT), which are primarily used for accessing all its games, products and services, including SmartBox. It’s also traded on cryptocurrency exchanges. With the said cooperation, RLT could become one of the most accepted cryptocurrency tokens between partners and customers.
SmartPlay.tech developers have demonstrated the cost-effectiveness of implementing blockchain-based solutions in the gambling industry. For example, in one of their games, the team was able to reduce the processing fee from 10% to 0.5%. The introduction of such a solution into a multibillion-dollar market, according to preliminary estimates, could reduce operating costs of several tens of millions of dollars.
Both the parties agree that China is the leader in the turnover of digital currencies and is ahead of other countries in terms of the cryptocurrency trading volume. It is quite logical to assume that if the possible ban on cryptocurrency exchanges comes into force on the mainland, Macau casinos will be one of the very few places where it would be legal to spend such crypto-assets.
Earlier, China had already closed all major cryptocurrency exchanges, functioning in its territory. However, according to the authorities, they even plan to block access to local and offshore platforms that offer centralized trade to their citizens. It is possible that, following the inflow of domestic funds, the emergence of cryptocurrencies in gambling institutions will attract an influx of external capital. Is this a benefit for the authorities, who not so long ago expressed their desire to issue their own cryptocurrency? How will the gambling institutions declare their income?
Against the background of the informal ban on cryptocurrency gambling by the Australian legislation earlier this year, the government of Malta, in turn, plans to create a whole cryptocurrency gambling zone. The Chinese authorities could resort to such innovative ways to increase the competitive advantage.
In addition, there is a risk that in the face of capital outflows, the Chinese government might tighten restrictions on the cash flowing into Macao. Wynn Macau is heavily burdened with debts from all six casino operators, and primarily focused on serving VIP customers. Earlier, in order to save money, the company has also reduced the amount of dividends. Therefore, the integration of cryptocurrency in gambling will bring about considerable changes in Macao.
The presence of casinos have helped China out of its crisis. Therefore, even with a negative attitude towards it, Chinese authorities continue to expand gambling, particularly in Macau. The introduction of cryptocurrency can be a decisive measure in the pursuit of new indicators.
Source: Read Full Article