The Comparison of Decentralized Casinos and Traditional Online Casinos in Terms of Security, Fairness, and User Experience

January 8, 2024
Decentralized Casinos vs Traditional Online Casinos

The 2024 is surely a year of changes in the online casino field, and the platform of decentralized casinos is gaining more and more attention by the day. As some experts in a niche like SoftSwiss state, it could be the game-changer in the online gambling scene, so we are naturally interested in giving you a full comparison between decentralized and traditional casinos. 

Through this guide, our Dappcasino experts will dive into the main comparison features like fairness, security, and availability to settle the dilemma once and for all. We’ll give you a full scope of the comparison with real play examples so you can focus on both the good and the bad points and decide which style suits your game the best.

Online Gambling Background

The world of online casinos started expanding back in the early 2000s with the first few gambling sites and providers like Microgaming taking over the scene. However, it didn’t exactly “explode” until around 10 years later when online gambling became mainstream.

That’s when online casinos started using a simple concept. All the major sites have at least some sort of a license like the UKGC or the MGA license, and their software is checked and approved by organizations like eCOGRA. 

Games are delivered by software providers and work on the RNG (random number generator) technology. Even so, the concept was rather simple in practice and it attracted a wide variety of players mostly looking to wager on online slots or live casino games.

It all changed with the introduction of decentralized casinos. This time, the sites didn’t have to be run by major licensing organizations, and that left some room for further development. It turned out to be one of the best things in the iGaming industry in the past two decades since all these platforms and even the games were based on crypto.

So, casino transactions became much more cost-effective and way faster, while games also based on blockchain used provably fair software. That means the games were also much fairer so decentralized gambling became the obvious option for online players.

Understanding Traditional Casinos vs Decentralized Casinos

When it comes to comparing these two types of online casinos, it’s crucial to consider several key aspects. These mostly include security, how the gambling operations work, and the basics behind the regulations and licensing.

Although we’ll consider all of these factors in more detail later on, it doesn’t hurt to immediately focus on some of these briefly. The main difference in the regulatory framework is that traditional casinos require proper licensing of major governing bodies, and also software fairness approval.

That’s where decentralized casinos can truly shine since they don’t necessarily require the same level of regulation. Depending on your country of residence, you may be able to access every crypto-gambling site without any restrictions, while that’s not the case with traditional casinos.

Plus, decentralized gambling sites don’t require any supportive licenses associated with game fairness since they operate on provably fair software, and that speaks for fairness alone. Finally, safety is also ensured through blockchain operations, while regular casinos require proper safety functions like SSL encryption and similar methods.

Security Comparison

All the security measures taken by traditional online casinos are simple and common for most of the sites you can access. They all include the following protection methods that you can see as a new player:

  • SSL data encryption
  • Payment method verification
  • Identity confirmation or KYC
  • Security regulations enforced by casino licensing bodies

That means all the sites use a standardized security process as recommended by the major governing authorities like the UKGC or MGA. On the other hand, we have a different approach when it comes to security in decentralized gambling sites and crypto casinos.

Since these aren’t backed up by any of the mentioned governing bodies or licensing authorities, we mostly have blockchain protection which is often enough. It replaces all the metrics used in traditional casinos and it concerns payment speed, security, and protection of player information since there are no KYCs required for crypto casinos.

Fairness Comparison

The next category is game fairness and this is where things get interesting. Most of the traditional online casinos use RNG which is a computer software that decides which symbols will appear next on the reels of your favorite online slots.

It determines the winning combination in these games and acts based on the RTP (return to player) ratio so the house has a pretty decent edge. On the other hand, crypto casinos use a different approach.

Even though you’ll be able to find a variety of sites using those same slots and casino games as regular online casinos, there’s a major difference here. The introduction of provably fair casinos turned the tables in the iGaming scene since it gave players a chance to verify the game fairness themselves.

Most notably, it’s the fact that the games can be verified to be fair by players that added up to crypto casinos getting the upper hand in this category. Most provably fair games have higher return rates of up to 99% RTP which is higher when compared with the regular 96% to 97% range of RTP for regular casino games.

User Experience

Another category where crypto gambling sites win is user experience since all the common comparison metrics like payment processing and fees go in favor of these sites. It’s pretty simple why that’s the case – crypto sites don’t require you to use a credit card or process your payment via a bank which sometimes takes hours or even days.

Instead, all the payments are quickly processed on blockchain and some payment methods like Tether or Ethereum can deliver instant payment processing. Plus, the fees are lower and you don’t have to go through identity verification due to that decentralized factor.

Both types of casino sites offer mobile optimization, but modern crypto casinos often win in that sense as well. So, when you add all the usability features up, you get a clear winner in terms of modern crypto gambling sites versus regular online casinos.

The final aspect of user experience we have to consider is game selection and while traditional casino sites tend to offer thousands of games, gambling DApps have unique provably fair games to add up to the selection.

Challenges and Limits

In terms of the challenges and drawbacks of both of these casino site types, there are several key pointers that come to mind. First, we have to address the known issues of traditional online casinos such as regulatory limits and accessibility.

We all know how tough it can be to see a site you prefer being blocked by geo-restrictions or banned by the regulatory body for your local area. So, that’s where crypto gambling sites win with their easy access and no limits being posed in that sense.

However, there’s also a matter of technological drawbacks such as payment method integration and pending times or fees. All these can make your experience much less pleasant.

As for decentralized casinos, their future seems bright just because of the limits of the traditional gambling sites and the ways in which gambling DApps have surpassed those. Payments are much more safe and secure, with a focus on lower fees and instant processing speed.

Even so, there are some drawbacks of decentralized online casinos since not all the sites offer appropriate networks for processing blockchain transactions. Plus, the matter of scalability still hasn’t been resolved and there are more and more players accessing these sites by the day. Still, it’s good news that those issues will be resolved quickly, which only leaves us with the matter of regulation.

We have yet to see how and if certain countries will enforce gambling regulations associated with crypto transactions, so that’s always a matter to consider.

The Future Outlook

Overall, the advancement of crypto gambling sites also started a new wave of progress when it comes to regular online casino sites. They tend to keep up with each other, so you can now use e-wallets with similar processing times as cryptocurrency transactions.

As far as the industry experts can see, crypto casinos will take the lead, but there are still hundreds of thousands of players who decide to go with regular gambling sites instead. 

The biggest question is whether decentralized gambling sites will be able to deal with the pressure of scalability and lack of regulations, so we have an exciting year ahead of us in that sense.


  • What are the main differences between traditional gambling sites and crypto casinos?

    The main differences between regular gambling sites and crypto casinos are the decentralized nature of gambling DApps and payment processing systems that operate on crypto.

  • Are crypto casinos safer than regular gambling sites?

    While it’s not a definitive answer in all cases, crypto casinos are safer than regular online casinos in general due to their lack of identity verification and payment details which could lead to information thefts in regular gambling sites.

  • What’s the biggest problem of decentralized gambling?

    The biggest problem of decentralized gambling is that there are no regulatory bodies governing the rules and limits for those sites, so if you access a shady site you may have a lower chance of scam protection.

Author Benjamin

Benjamin is the brains behind the casino review process and an iGaming content writer with 10+ years of experience in the niche. His “outside the box” point of view on online gambling gives him a unique perspective on every piece of iGaming content that he writes. Having been a player himself for years, he’s especially interested in giving true value to players with an objective approach to reviews and properly testing each site with real-money play beforehand. That’s why we trust him to deliver all the essential details to you regarding what he believes is the future of online gaming - crypto and decentralized casinos. Besides testing out new sites and casino games himself, Benjamin is also a free-time BBQ expert (that’s what he believes at least) with a tendency to enjoy a hot summer day sitting behind the grill with an ice-cold beer in his hand.