Cointime

Download App
iOS & Android

Are NFT Games Gambling?

From NFTEvening By Ariz

Non-fungible tokens (NFTs) and cryptocurrencies are based on the same blockchain technology and bar in-depth technicalities; that is where the similarities end. If you are looking to update yourself with trends of crypto gambling techniques, you won’t find them here as the approaches NFTs and cryptocurrencies take towards gambling are largely divergent.

https://pixabay.com/photos/poker-game-to-play-gambling-luck-1564042/

The divergence is obvious in the nature of NFTs and cryptocurrencies, with the former being non-fungible and the latter being fungible. The simplest way to describe fungibility is to explain it with the dollar or any other fiat currency. Every dollar note in good condition is worth just as much as any other note; it holds the same value, and in that sense, no one dollar is unique. This means that every unit of the same cryptocurrency has the same value and can be exchanged for one another, but this is not the same for NFTs, as each NFT is personal and unique, and this dictates how they are used in gambling.

This backstory is important because it allows you to think beyond what you are accustomed to regarding gambling with fungible currency. It prepares your mind for the fact that while NFT games can be gambling, they take on a new approach. Continue reading to learn about this new approach and other ways NFTs can be deployed.

NFT Betting/Gambling

If you are already familiar with the gambling world, all you need to do is replace whatever currency you currently wager with NFTs, and you will be stumbling into the new world of NFT gambling. At first, it might seem customary, but when you wager your first NFT against someone else’s, that’s when you begin to see the vision behind NFT gambling.

The personalization of these items and the chance to win something equally rare, if not rarer, than what you are staking continues to draw players to NFT gambling. Depending on your platform, although not too many allow NFT gambling at the moment, you get a chance to wager whatever NFT of your choice and a go at wins just as random. With literally anything being able to be made into NFTs, you could end your session having won items ranging from Smurf NFTs to the rare Starbucks Odyssey NFTs.

NFT gambling is like regular gambling, with unparalleled unpredictability and excitement that would get players already bored of the usual hyped and pumped for their next bet.

Why is it permeating the gambling industry?

Originally advertised as get-quick-rich schemes by influencers the world over, many people are skeptical about the use of NFTs and the role it has come to play. With popular NFT projects like the Bored Ape Yacht Club losing nearly 90% of their value, people are still cautious about pitching their tents with NFTs. It is this reason that makes the resurgence of NFTs in the gambling industry all the more impressive. It has been able to convince several people beyond doubt as a result of the following properties it possesses:

• NFTs are programmable:

These are also known as smart NFTs and can be automated. They can be designed to carry the identity of the platforms where they are wagered and can automatically transfer ownership between the players. This ensures branding continuity for the platform and eases the transfer process for the victor.

• Adds levels of unpredictability:

Adding NFTs to the mix allows for more unpredictability in the gameplay, different from what has become the norm when gambling with fungible currencies. With precious personal, customizable items on the line, people are more likely to sit up during games or crumble under pressure. It certainly creates a better gaming experience for people who like to gamble on the edge.

• True ownership:

While the copyrights and licensing still belong to the author or creator of the NFT, you have bought some stake with evidence of possession in whole or part of the token. If you read between the lines, you can tell you do not outrightly own all that relates to the NFT, but it is far closer to ownership than what was available or presented before the advent of NFTs. Before, if you lost your login information or could not access the platform that holds tokens you have won gaming, there was no way to access or lay claim to them.

• Cross-platform compatibility:

How else can you prove you truly own an item other than being able to use it on any platform of your choosing? Before, players found it difficult to move their in-game items to another platform because they feared losing their progress and starting over again. Now, with the use of NFTs and their growing acceptability by many platforms, players can access their tokens across these platforms, allowing for interoperability like never before. With the growing adoption of the Metaverse across all industries, it becomes effortless to use, move, and interact with your NFTs.

• It paves the way for collaborations

The introduction of NFTs to the gambling industry has allowed for the most interesting and unexpected collaborations. It brings more exposure to major stakeholders in the industry and adds excitement for the players. You can roll custom dice with insignia or skin from your favorite movie or video game.

• Anonymity and security

The fact that NFTs are established on blockchain technology imprints the same security features people have come to love with using cryptocurrency. Since you can stake with NFTs, players no longer need to attach their bank or card information to their preferred gambling platforms. Not requiring this information ripples to a relaxed need for the Know-Your-Customer (KYC) requirement, meaning players might not need to provide personal information.

Other ways NFts can be used

So that’s how NFTs can be used in gambling and why it is becoming preferred by players and operators alike. But beyond being wagered, NFTs have other roles in the gambling industry. The following are some of these roles:

Tokenized luck

Do you ever feel like you have lucky days gambling in brick-and-mortar casinos? Or do you have personal rituals that can guarantee you a large percentage of wins? You will have to kiss all those goodbye when you are playing online unless there is a way to engineer or program luck.

It turns out there’s such a way, and it can be done with unique NFTs. Like a power-up in your favorite console game, having some NFTs can serve as tokenized luck that aids your gameplay or hexes your opponent, depending on what NFT type you have in your stack.

Access token

Another ingenious way operators deploy NFTs is their use as an access pass to online casinos. It is an effective way to keep out minors without requesting their information. It can also be used as a prerequisite to access VIP sections of the casinos or offer exclusive games to players possessing the NFT.

Reward loyal customers

Beyond gambling with NFTs, players can wager with whatever currency they choose and be rewarded in NFTs. These NFTs can be branded by the online casino operator and grant perks to the players to appreciate them for their loyalty to the operator or expertise in playing their preferred games. If you want to collect NFTs, this is one of the best ways to get free NFTs.

In-game collectibles

After investing a lot of time and other resources on your preferred platform, NFTs can be used by these platforms to commemorate your wins and achievements. This can be in the form of badges to show that you belong to an elite class of players or virtual avatars to show all other gamers on the platform your rank and expertise. If you collect really rare badges and virtual avatars, you can make money off them by selling them on any NFT marketplace of your choice, with Opensea being one of the most popular.

What does the law say?

The law surrounding NFTs, cryptocurrency, and the blockchain is largely speculative. Moreover, there’s no uniformity across the different regions, making it challenging to determine whether NFT gambling falls under the same category as crypto and fiat gambling.

However, France seems to be leading the way in defining NFT as it pertains to gambling, and expectations are lawmakers worldwide would follow the same steps or adopt something similar. The French are doing so in the name of a digital law voted through by the Assemblée Nationale on October 18, 2023, called the loi [visant à] sécuriser et réguler l’espace numérique (SREN), which translates as the ‘law [aiming to] secure and regulate the digital space.’

The SREN law has created a distinction between gambling and crypto/NFT gambling. It introduces regulation for monetisable digital games, that is NFT and blockchain based games called JONUM, jeux à objet numérique monétisable. The Jonum Regime, as it is called, or the Sorare law, distinguishes Jonu from games that are currently regulated by the National Gaming Authority (ANJ), France’s gaming regulator, as long as the proceeds from these games remain digital and are not exchanged for fiat currencies. This framework is being implemented to foster user protection without clamping down excessively on innovation.

NFT
Comments

All Comments

Recommended for you

  • Ethereum Foundation Sells 2,785 ETH Worth Approximately $6.42 Million

    On October 26, according to monitoring by Onchain Lens, the Ethereum Foundation sold 2,785 ETH through CoW Swap for approximately $6.42 million in exchange for USDS.

  • Qatari Mediators Arrive in Tehran to Alleviate Regional Tensions

    According to an official familiar with the situation, Qatari mediators arrived in Tehran on Sunday with the aim of easing regional tensions. Qatar's mediation efforts are being conducted in coordination with the United States.

  • Musk: Future Phones Will Have No Apps or Operating Systems, Just AI Generation

    On October 25, Musk predicted that in the next 5 to 6 years, smartphones may undergo a complete transformation: traditional operating systems and apps will gradually disappear, and phones will become dedicated terminals for running AI. At that time, users will no longer need to download applications or open software; instead, they will simply tell the AI what they want, and the phone's AI will collaborate with cloud AI to generate videos, images, and various interactive content in real-time.

  • Iran: Tehran's Stance Unchanged Despite Potential New U.S. Strikes

    On October 25, Iranian Foreign Minister Zarif stated on Sunday that Iran's position will not change even if a new round of conflict erupts between Israel and the United States. This comes amid escalating tensions between Tehran and Washington. U.S. President Trump had mentioned on Friday that Washington "might come back for another small-scale 'epic fury'" military operation. Zarif remarked, "Recently, some have talked about the possibility of a new war, but I am already considering the post-war situation. Our policies will not change whether or not war occurs. They have tried twice before and have seen the results. If they want to try again, they should understand that the final outcome will be no different from the past." (Golden Ten)

  • Russia Ready to Supply Any Amount of Diesel to the U.S.

    On October 25, Russian Deputy Prime Minister Novak stated that Russia is prepared to supply any amount of diesel to the United States.

  • Egypt's Benchmark Stock Index Declines by 5%

    Egypt's benchmark stock index has expanded its decline to 5%.

  • Yemen Conflict Escalates, Saudi and Egyptian Stock Markets Decline

    On October 25, Sunday, the stock markets in Saudi Arabia and Egypt experienced declines. This followed a statement from the Saudi-led coalition indicating that, amid escalating conflicts with the Yemeni Houthi forces, the coalition intercepted several drones and missiles over Riyadh and southern Saudi Arabia. Under pressure from widespread sell-offs, the Saudi benchmark index (TASI) fell by 2.6%, marking its worst intraday performance since April 2025, with major stock Saudi Aramco dropping by 1.1%. Outside the Gulf region, the Egyptian blue-chip index (EGX30) plummeted by 2.5%, nearing its lowest level in about seven months, with all constituent stocks declining. The Egyptian parliament is expected to vote on October 26 to decide whether to authorize the armed forces to provide support for Saudi Arabia in its conflict with the Houthi forces upon request.

  • SemiAnalysis CEO: Substrates are the 'Biggest Bottleneck'

    On October 25, the CEO of SemiAnalysis stated: 'I believe that in the semiconductor industry, the biggest limiting factor, aside from memory, is substrates. Substrates, PCB materials, and substrate materials are all severely under-invested. Many companies in the supply chain that produce these materials in Japan are relatively conservative and unwilling to make significant investments in capacity. As a result, there is a huge bottleneck. In terms of what can be produced in the next two years, whether it’s accelerators, CPUs, or any other component in the supply chain, I believe substrates are the biggest bottleneck.'

  • Keystone Hardware Wallet Website Hacked, Customer Information Leaked

    On October 25, Hong Kong-based self-custody hardware wallet brand Keystone, known for its full isolation and QR code signing, disclosed that its official website was unauthorizedly accessed on October 20, exposing customer names, contact information, shipping addresses, and order details (including purchased products and prices). The company confirmed on October 23, after verifying API activity with Shopify, that a third party obtained customer shipping information. Keystone emphasized that payment card and bank information, mnemonic phrases, private keys, and wallet passwords were not leaked. The company has blocked access, patched vulnerabilities, initiated an investigation, and notified affected customers via email, warning that scammers may impersonate Keystone to deceive customers under the pretext of refunds or device exchanges. Customers are advised not to click on suspicious links and not to disclose mnemonic phrases and private keys, with plans to release a detailed report within a few days. Other companies in the industry, such as Trezor (which experienced a leak from logistics provider ShipMonk in August) and Ledger (which had a security incident this month involving modified devices stealing mnemonic phrases), have also faced security issues.

  • Goldman Sachs Lowers 12-Month Target for South Korea's KOSPI Index by 25%

    On October 25, strategists at Goldman Sachs Group lowered their target for South Korea's KOSPI index by 25%. Previously, they had raised the target multiple times this year, but with increasing market concerns over AI-related trades, they have now opted for a downgrade. Led by analyst Timothy Moe, the team reduced the 12-month target for the KOSPI index from 12,000 points to 9,000 points. They noted that, given the benchmark index has fallen more than 35% from its peak in June, valuation assumptions need to become more cautious. These strategists believe that the current sell-off has left the South Korean stock market significantly undervalued; even after the target downgrade, the index still has over 60% upside potential.