In the first in a series looking at use cases for the CasinoCoin blockchain, Duncan Cameron, technical director of the CasinoCoin Foundation, explores the benefits of an on-chain loyalty and reward programme
Retention is the key battlefield for online gaming operators today.
Competition in key, regulated online gaming markets has never been more intense. Marketing costs are soaring, the price of acquiring a new player is following suit.
At the same time, the idea of player loyalty within the sector is at an all-time low. Even casual gamers often have five or more accounts with different operators, and pick and choose based on bonuses and other offers.
So retaining those players that do register is absolutely critical.
We’ve seen several different approaches to this challenge. Constant bonuses are one way to ensure loyalty, but they are costly.
Instead, many have enjoyed success with loyalty programmes, which reward players with points that can be exchanged for prizes, free bets or other merchandise. The likes of PokerStars have been particularly successful in terms of getting players to buy into their loyalty scheme.
A new type of loyalty scheme
But operating such loyalty schemes is no easy task.
Tracking the allocation of points to players and providing them with a secure, closed-loop ecosystem within which to spend their points is a major challenge for operators.
Oftentimes, points totals can take hours to update, or not be tracked correctly. Fraud is also prevalent, as the systems are rarely handled with the same security as one would expect with a real-money transaction.
The CasinoCoin blockchain is offering a new type of loyalty solution, which is fully on-chain, completely secure and seamless to integrate.
Here’s how it works.
We create a custom token, branded by the casino, that acts as loyalty or reward points. The token sits upon the CasinoCoin blockchain and benefits from our best-in-class technology, including absolutely security, lightning fast transactions and super low fees.
When a player earns loyalty points through gameplay, a reward is initiated instantly via the CasinoCoin blockchain, with the casino operator’s own dedicated wallet automatically sending the tokens to an individual player destination tag.
This ensures the total number of points held by the player is both up-to-date and immutable.
From there, the player can spend the points in the casino’s store, with the tokens again instantly transferring to the casino’s aftermarket address.
From there, the casino can do as it pleases with the spent tokens, whether that be re-enter them into circulation, or sell them outside of the loop on a third-party exchange.
We see on-chain reward and loyalty schemes as the next step in the battle for better retention.
Not only does this technology make it simpler to manage the programmes, it also helps create stronger engagement around them. Players will get to hold and spend a branded token, rather than simply a tally of points.
And it also provides greater flexibility in terms of extending loyalty programmes, whether that be in the way players can spend their tokens, or even opening up third-party marketplaces where the tokens can be traded.
We are already in several advanced conversations with operators to launch reward programmes on the CasinoCoin blockchain.
Once live, we expect it to redefine the way operators reward their players, and ultimately become a key retention tool.
The blockchain for gaming
The use of the CasinoCoin blockchain for loyalty and reward programmes is part of a wider strategy that will position CasinoCoin as the blockchain for gaming.
Our technology stands head and shoulders above the competition when it comes to the particular demands of this industry.
We are fully scalable and expect to be one of the world’s most active public-facing blockchains by the end of the year.
The likes of Cammegh and eGaming Fund have already picked the CasinoCoin blockchain to power innovative new products, and we expect many to follow.
Our focus is on bringing the best in blockchain technology to the gaming industry, so that we can drive forward real-world use cases that bring benefits to operators, players and regulators.
This is just the start.