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(I could even develop my own gambling site on top of DAO.Casino’s protocol and pay out users in BET tokens, but rename them Dancoins.) The company’s hope is that online betting sites will integrate with its network to offer games without the casino, a middleman that takes a big cut and may not always be trustworthy. If you’re confused, don’t feel bad. In a blog post back in March, the company addressed the confusion its name creates. “Many people wonder why do we have DAO in our name, when the term has previously been associated with a ‘hacked’ investor-directed venture capital fund. They think — and we don’t blame them for it — that is somewhat an extension of an organization whose security loop could’ve cost them millions worth of ether.” The post goes on to acknowledge that using the DAO acronym is “somewhat giving us bad publicity.” Nonetheless, the company embraced the DAO acronym because of what it stands for, a decentralized autonomous organization (which any blockchain-based project is), even if it now carries the stink of The DAO. Of course, online betting operators may be hesitant to jump on an Ethereum-based protocol for reasons that have nothing to do with DAO.Casino’s name. For starters, the entire cryptocurrency space still has an air of distrust to it; blame the high-profile Silk Road drug market trial, or periodic hacks of bitcoin exchange sites , all of which stoke negative headlines. As one West Coast fintech attorney, who wishes to remain anonymous, tells Yahoo Finance, “I get clients all the time that say, ‘I want to take X and make it better by using cryptocurrency,’ and it’s always either a way to try to get around something illegal or it solves a problem that really didn’t exist.” Keep in mind also that online gambling (or “iGaming”) is still illegal in most states in the US , even when the website taking a bet is based outside the US. But online gambling thrives outside America, and is a $46 billion market globally. DAO.Casino could face regulatory scrutiny in the US, even though the company would likely make the argument that it is just an Internet protocol, not the gambling operator. As of January, nearly 25% of all smart contracts on Ethereum were game-related.
For the original version including any supplementary images or video, visit https://finance.yahoo.com/news/dao-casino-wants-use-cryptocurrency-disrupt-online-gambling-153213728.html
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