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Two Las Vegas casino hotels will become the first known US commercial gambling houses to allow the use of the unregulated digital payment system, bitcoin, casino officials said on Tuesday.
“This is a new frontier, one of a kind,” Steve Wynn said in a statement about the launch of the T-Mobile Gambling Technology Innovation Center at his Wynn Resorts casino, adding he expected more to follow.
The announcement was followed by a similar move by MGM Grand casino in Las Vegas.
“Our staff has extensive experience dealing with the Bitcoin industry and its technology. The Bitcoin community is one of the largest and most knowledgeable in the world,” Jim Murren, president of MGM Grand, told Reuters.
He added that casino owners were still in the testing of the technology.
The Bitcoin platform is largely viewed as a means to buy and sell the cryptocurrency as well as for making financial transactions, but its underlying technology, a peer-to-peer network that can never be physically altered, has made it attractive to people looking for an alternative to the traditional banking system.
“The potential is huge,” said Alexei Kuznetsov, a managing director at XBT Provider, a Moscow-based investment manager. “It’s a new technology … where Bitcoin is the fuel.”
A major hurdle for banks, who have struggled to implement bitcoin, was the perception that users of bitcoin might be anonymous.
But the introduction of bitcoin ATMs – machines that take credit and debit cards and dispense bitcoin for withdrawal – will help overcome that.
As part of the strategy, the casinos will sell bitcoin to customers and take a small percentage of each transaction. At an estimated price of 12 cents each, that compares with about 2 to 3 cents per bitcoin currently sold.
Banks would not be required to hold bitcoin for customers, but they may have to offer them as an alternative to pay off their existing credit and debit card balances.
The move will draw a lot of attention as casino industry leaders compete to expand into new markets. The US has some of the world’s biggest and most profitable casinos, with some operating in the billions of dollars annually.
New Jersey, however, recently outlawed casino gaming amid a dispute over the legality of internet casinos in New Jersey.
“I think more casinos with bitcoin will be announced in the near term,” said Patrick Strateman, founder of crypto currency research firm Coin Center.
The T-Mobile Gambling Technology Innovation Center is located at the company’s Las Vegas Strip gaming complex – and would be the only casino in the world to operate from the technology, Wynn said.
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