hope to have that in the US; you can move money much more quickly through the banking system. But fundamentally when you move money what happens is you have to have a money transmitter – somebody has to be licensed to move money between people. Blockchain allows us to move money freely between people without the intermediary and that means in gaming we can reduce costs massively. In almost every instance of land-based or online gaming, a money transmitter is charging 2-5% to move the money from the customer to the casino. By us designing our product on a blockchain, we use that to move the credits from the player to the slot or player to casino and we completely eliminate the need for money transmitters. To us, everything we do on blockchain is about

reducing costs, friction, and giving the player a better experience – letting them keep more of their money! Players do not like having to pay fees for money transmitters, it’s less entertainment value for their dollar. That’s why we use blockchain.

CI: How does it work in a land-based operation? MD: At the end of the day, BitBoss has two main business segments – online and land-based. The land-based side is centred around a device which is a SAS proxy, SAS being the protocol that all slot machines speak. A proxy is a device that takes something into one side and pushes it through the other; we insert this device into slot machines and it allows us to route credits on and off slots. So we provide a blockchain-based cashless wagering system for land-based casinos. There are several advantages to that which we can

get into later.

Our other main product is an online blockchain gaming-based platform and we run that completely on blockchain and have games like baccarat, roulette, blackjack, slots all running 100% on a blockchain with bets made in real time from your crypto wallet so you never have to fund your accounts with operators, you’re just passing along what you want to bet in real time to the operator. We can pay content creators, affiliates, everyone in

the value chain of online gaming in real time, paid based on theoretical net win of the game. The blockchain allows us to make very small micro- and nano-based transactions which are not possible in traditional online systems. If you’re a content creator and affiliate you can be assured that you are being paid for your content or customers you are feeding into the system and you can see yourself being paid in real time. It helps eliminate many of the inefficiencies of back-end accounting and payment systems of online platforms.

CI: Is that the total of the advantages, or is there more? MD: I’d also add that it has a lot of extra features that are not widely available today – in the case of our cashless wagering app for land-based casinos, because we use blockchain we can now add extra functionality that will not exist in traditional client-server database

“…the cryptocurrency we use is actually a stablecoin, which means it is pegged to the US dollar. Our cryptocurrency actually represents US dollars held in a bank account”

architectures. We can now allow for the seamless transitions of credits or money from wife to husband, or customer to taxi driver… Whatever it may be, when you start looking at the ecosystem of a place like Las Vegas or Macau, and how money flows from player to wherever, when you put those credits on a blockchain a casino or property is looking to save 2-2.5% in credit card fees every time one of their patrons wants to pay for something, whether it’s a drink at the bar or a t-shirt from the gift shop. We’re really trying to expand this financial ecosystem

outside the walls of the casino so the casino can be more involved in their player’s everyday life when they go to a gambling resort.

CI: If players can use a virtual currency to gamble and payout, what decides the value of the currency as it’s in constant flow? MD: When I said we use blockchain technology, what I mean is this – blockchain is the underlying technology of, say, Bitcoin. That’s a currency that runs on top of a blockchain and there are thousands of cryptocurrencies in the world now that all run on different blockchains. We have purposefully chosen the blockchain we use for the advantages it has for gambling. But the cryptocurrency we use is actually a stablecoin, which means it is pegged to the US dollar. Our cryptocurrency actually represents US dollars held in a bank account. When you think of the currency I use, think of it like an actual currency; the currency we have created you can take into a bank, prove your identity and use your cryptowallet and transfer that back to the bank in exchange for fiat currency. It’s the proof of ownership that you are the rightful owner of a share of the bank account that’s held in the US.

CI: So because it’s tied to existing currency and a real bank account, that means this is in fact all about the blockchain? MD: Yes. It’s a blockchain-based system with a stable currency pegged to the US dollar. No fluctuation, to a casino gambler it looks like credits or dollars or whatever held in their wallet, used and played with the way you would use cash. It is electronic, programmable money.

CI: At what point does BitBoss make money in this? MD: There’s always this movement of money from the fiat system into the BitBoss system, and that’s where we can charge transaction fees to get the money in. Once the money is converted into crypto and is moving around freely there are some small fees, tiny compared to what a traditional money transmitter would charge. We don’t have the overhead of these legacy businesses.

MAY 2021 35

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