There are currently several casinos running on the Bitcoin network, but none for other crypto currencies. A few sites like Heritage Sports, Fortune Jack and Betcoin accept alt currencies for wagering, but none run on the Ethereum network. That apparently is set to change at the end of this year when a website called Edgeless is set to start full operations using Ethereum for gambling.

The company was started in 2016 and throughout the year acquired shareholders with a crowdfunding campaign providing tokens to early subscribers and a percentage of future profits. Those early funders have been able to play blackjack on the site using EDG coins given to them. To date, however, the company has not been able to launch fully because they don’t have a gambling license. But rumors have it that the site will finally get their gambling license at the end of this year. According to reports from the company they will initially offer blackjack to the general public and plan on adding dice, video poker and sports betting in the near future. The games are played with the cryptocurrency $EDG which are purchased with Ethereum. Not surprisingly there aren’t a lot of trading sites offering $EDG and it’s not certain if the coins will be available for purchase directly from the Edgeless website. As of today EDG is selling for about $1.60 USD per coin on Bittrex.

The company, whose website is https://edgeless.io, has utilized developers with experience in casinos and poker and staff believe they have the know how and experience to make Edgeless a success. According to press releases by the company, they indicate that traditional gambling companies as well as Bitcoin gambling sites have cheated customers by manipulating code (and they have provided articles which apparently show how this is indeed the case), but they claim every transaction on Edgeless is completely transparent (one of the main selling points of Ethereum) making cheating impossible. What also makes Edgeless unique, besides the fact the games use smart contracts, is that the company says all casino games will have a zero house edge. In bettor words blackjack, dice and video poker will have no edge built into the games and the theoretical hold will be zero. The company maintains that they will still make money, however, by taking advantage of bad play.

The whitepaper notes that all casinos have a 0.83% advantage in blackjack simply because bad players will stand on 16 against a 7, will split 10s etc. and that these poor players will lose money to the casino in the long run. And with video poker, there are methods of suggested play but a lot of players don’t adhere to them and will make mistakes, i.e. dumping a paired ace in hopes of getting the last card to complete a flush. These “poor” players will offset all the good players and will provide a hefty profit in the long run. Edgeless also indicated it will introduce sports betting at some point, but unlike a traditional sportsbook, they will operate on a player vs. player model where smart contracts are made for wagers (similar to Betfair and Matchbook) and Edgeless will take a small fee for each contract providing even more profit.

The company is based in Lithuania, which seems to be a hot spot for crypto companies and the staff is mostly from Lithuania and Germany. One of the concerns that could hinder the initial success of Edgeless is the speed of the Ethereum network. Ethereum has been so slow lately that transactions often take several minutes to complete, which naturally wouldn’t work for a casino.

OSGA will follow this product closely and will let readers know if and when it is truly operational and available to the general public.

Read insights from Hartley Henderson every week here at OSGA and check out Hartley’s RUMOR MILL!