Startup to Create a Gambling Ecosystem to Make the Industry More Transparent and Efficient
3 months ago kakp2 Comments Off on Startup to Create a Gambling Ecosystem to Make the Industry More Transparent and Efficient
JoyToken, a Blockchain-based platform and protocol located in London, is aiming to create a new gambling ecosystem which is designed to be more clever and trustworthy. The company says they have already secured deals with major networks operating more than 200 casinos.
Changing gambling by empowering developers
JoyToken is being developed by former PokerStars and Bet365 executives. It aims to change the $20 bln gaming industry by making it less confusing, more transparent and efficient. The company has developed a solution to connect small developers, software houses, large digital casinos, and players. A new gaming ecosystem created by JoyToken could also empower players and help casinos reduce risk.
The startup founders believe they will achieve their goal by creating entrepreneurial opportunities for small game developers. The main challenge is providing an access to a large audience – currently, large game developers completely dominate the industry.
For smaller studios, promoting their games and gaining users is almost impossible. JoyToken is planning to use smart contracts to reward developers for creating new games and to safely guarantee, record, and audit each transaction.
Trust is the most valuable asset
Regulatory requirements and the lack of trust from players are the biggest challengers for the gambling industry. Players tend to use reputable, larger casinos instead of smaller sites – even those offering more “interesting games” – because players naturally gravitate to large casino companies that invest a lot into brand awareness and advertising.
Figures on overall advertising spend are not available but according to data from several online gambling operators, their annual budgets are in the tens of millions of dollars. For example, GVC Holdings, a network of gambling sites, reported expenditure of almost $50 mln per year on customer acquisition and retention.
Players, especially younger ones, want more from their gaming experience, including financial anonymity, trust and transparency. JoyToken aims to solve many of these issues.
Fixing bad reputation
For developers, the platform is providing a pathway to accessible game integration. It also eliminates middlemen: payments are going directly to developers’ bank accounts in the form of JoyTokens. Additionally, the startup takes care of all regulatory and compliance requirements. JoyToken also gives developers access to their own online casino website – the PlayCosmo Casino licensed in the UK, Malta and Curaçao – to test their games before general release.
Smart contracts allows the platform to automatically validate and log game results directly onto the accessible Blockchain ledger. This means that authorized players and game developers will be able to verify results, as well as cross-check game reputation.
The platform is being supported by gaming professionals, such as Keld Knudsen who has more than 30 years of experience with multinational organizations including American Express and Fujitsu Siemens Computers. He joined Mr. Green, an established online gaming company that offers online casinos and sports books during its early startup stages.
JoyToken’s founders have already signed deals with some major gaming distribution companies operating over 200 casinos around the globe which are planning to use JoyTokens. “JoyTokens will enable developers to pay and be paid for their games, while enabling players to enjoy games on PlayCosmo and many other sites,” the company founders said in a statement.
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