How DAOs Are Changing the Management Approach in iGaming

Traditional models of entertainment platform control are slowly becoming obsolete and are increasingly criticised by users.

Advanced systems of decentralised autonomous organisations (DAOs) have become an alternative to classic administrative protocols. These solutions combine inclusivity, transparency, and independent management.

Attention to such structures is growing rapidly in both the crypto industry and other commercial sectors, including iGaming. According to analytical reports from the DeepDAO portal, the total turnover of enterprises working on decentralised management systems exceeds $10 billion, and the total number of participants is more than 1.7 million. This confirms a high interest in the niche and the willingness of investors to develop in a new environment.

The DAO Model and Examples of Its Use in Gambling

Decentralised autonomous organisation is an online administration format built on smart contracts and blockchain technology. Its main feature is collective transparent management, in which there is no single decision-making centre.

Community members vote on all issues related to the platform’s functioning and development. The adopted changes are automatically introduced through pre-programmed algorithms, thus completely eliminating the risk of manual intervention.

DAO tools guarantee participants in the digital environment the following:

• transparency of any internal operations;
• equal collective control over resources;
• sustainable autonomy of the website;
• significant reduction in the number of manipulations and bonus abuses.

The idea of ​​working in such a format first arose in 2016. Its author is considered to be Dan Larimer, the creator of the EOS blockchain platform, built based on Ethereum. The first pilot project failed due to a bug in the source code, but the concept was not lost and was successfully embodied in other startups.

Supporters of decentralised governance models believe that self-organised communities can provide a much higher level of social coordination than any structures with a single control authority.

The most famous examples of the effective use of DAO protocols in gambling include:

1. Decentral Games is a metaverse casino where registered customers can vote for adding new solutions to the catalogue and the project’s general direction.
2. Chiliz/Scorum crypto startups are decentralised platforms whose audience manages sports and cyber tournaments with betting elements.
3. BetSwirl DAO is a blockchain entertainment resource with a unique algorithm for automatic number generation, which is controlled by the portal’s internal gaming community.

Functionality and Technical Characteristics of DAO Protocols

Despite the great diversity and wide specification of such systems, they all have a set of standard qualities.

Let us consider basic parameters of a decentralised autonomous organisation:

1. Use of blockchain technology. It is the special architecture that ensures complete transparency and eliminates the possibility of changing data in the information chain. Each client can check the voting process at any time.
2. Collective decision-making. All owners of ecosystem tokens have the right to express their views. If the initiative is supported by the majority, it is automatically introduced using pre-set algorithms.
3. Automation via smart contracts. DAO fulfils the set conditions without the participation of operators, which significantly reduces the costs of administering an entertainment site.
4. Application of inhomogeneous management models. Some organisations work based on the Plutocracy principle, where the right to vote depends on the ownership stakes. This resembles the structure of joint-stock companies.
5. Flexibility and scalability. The system can be upgraded at any time and supplemented with new modules or functions. This approach allows for more effective adaptation to the needs of the audience, which is especially relevant in the iGaming niche.

DAO as a Guarantor of Transparency in the Field of Social Interaction

One of the key advantages of the tool is the full openness in financial and administrative processes. By ensuring clarity, entrepreneurs can count on the most trusting attitude of players and long-term retention.

Thanks to blockchain and smart contracts, gamblers can check all current operations: from the accrual of bonuses to the determination of winners in promotions. Moreover, DAO services make it possible to propose unique changes to the rules or mechanisms for distributing rewards.

In such an ecosystem, a user becomes not just a client but a full-fledged participant in the platform's management structure.

DAO models can be used to interact with the audience in various formats:

1. Making changes to the catalogue of slots. Each token holder can initiate the addition of a new product. If the support of the majority is achieved during the voting, the digital portal independently implements the idea.
2. Distribution of income. Part or all of the establishment's profits can be automatically shared between the owners of DAO assets. The payment mechanism will be provided by smart contracts, which eliminates any fraud.
3. Changes in the rules of the game. Entrepreneurs can provide players with an opportunity to independently adjust the limits of commissions and rates, as well as types of rewards in bonus programs or promotions, and other parameters of the user interface. Any modifications will be implemented based on the results of a public vote.
4. Choice of the direction of the platform’s development. The DAO structure allows operators to send part of the profits to separate funds to improve the design of the site and launch new functions or marketing campaigns. All transactions are reflected in the blockchain and remain transparent for token holders.
5. Increased level of security and external audit. Gamblers with the right to vote can initiate a check of smart contracts and make a collective decision on the introduction of additional KYC procedures or changes in data encryption protocols. Such functionality significantly enhances confidence in the online casino and reduces the risk of fraud.

Benefits of Using DAO Systems in the iGaming Segment

According to the DappRadar platform, by the end of 2024, the total number of projects built on the architecture of decentralised governance increased by 72% compared to 2023. The leading categories were DeFi applications and gambling. Such dynamics are a key factor in favour of implementing DAO systems.

Blockchain solutions provide casino owners with the following tangible benefits and functionality:

1. Transparency of financial and administrative transactions. Every interaction with the platform is recorded and displayed on the distributed ledger. Clients can verify the honesty and fairness of the results of any type of activity in real time.
2. High level of trust and engagement. Direct participation in the portal’s management makes players interested in its success and profitability. Loyalty and the overall performance increase, which contributes to long-term sustainable business development.
3. Reduction of administrative expenses. Automation of typical tasks using smart contracts eliminates the need to hire a large number of full-time professionals. At the same time, entrepreneurs receive extra opportunities for scaling and reducing the cost of each internal operation.
4. Flexibility and adaptability of the website architecture. DAO systems are built in such a way as to quickly change depending on the realities of the market. Collective management is the best way to identify the preferences of the majority of active gamblers and customise services in accordance with their requests.
5. Global coverage. Blockchain technologies make money-based entertainment available to users from all over the world. The ability to work regardless of government regulations contributes to the rapid expansion of the client base and increased liquidity of tokens.

Nuances and Risks that DAO Casino Operators May Face

The implementation of decentralised management protocols may be associated with some specific difficulties.

2WinPower specialists have highlighted the key points that need to be considered when launching an entertainment platform based on the DAO.

The list of the main challenges includes:

1. Complexity of project implementation. Development from scratch requires advanced technical architecture, expertise, and experience in blockchain engineering. Vulnerabilities in the code can cause major financial losses, as happened with the project of the DAO concept’s founder.
2. Risk of “whale phishing”. A highly specialised term meaning the possibility of incorrect distribution of assets, when users with a large package of digital coins dictate their will to other gamblers. Such unbalanced models scare off potential investors.
3. Need for training. Clients who will make decisions must understand the mechanics of the procedures. Without minimal knowledge in the areas of transparent voting, token management, and wallet security, any DAO project risks remaining niche and unclaimed.
4. Specifics of the scalability of casinos with smart contracts. As the number of regular active users increases, so does the load on the network. Not all blockchain platforms are capable of providing large volumes of transfers in real time.
5. Constant security threats. The DappRadar report notes that the decentralised application industry will suffer losses of $1.3 billion in 2024 from hacks and exploits. This is 31% less than in 2023, but without regular audit and optimisation of protection protocols, the casino business is at high risk.
6. Legal uncertainty. The systems’ status remains ill-defined in most countries. This can cause difficulties with licensing, taxation, and protection of business participants.

Regulatory Perspective of DAO Structures in Different Regions

Having an up-to-date legislative framework is one of the most difficult aspects that slow down the mass adoption of advanced blockchain services in various commercial verticals.

Let us consider the situation with the legalisation of decentralised governance systems in various countries:

USA

Wyoming became the first state to recognise the official legal status of DAO protocols. The corresponding act, the Wyoming DAO Supplement (SF0038), was passed in July 2021. According to the document, the described structures can be registered as limited liability companies (LLCs).

At the federal level, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have not yet made a final decision on the status of tokens.

European Union

The region is in the process of preparing for the launch of a unified MiCA regulation. The protocol was supposed to come into force in early 2025, but is currently in the final approval stage.

The document does not contain any direct provisions on DAO regulation. However, some countries advocate for the full inclusion of such blockchain structures into legislation. Germany and France are the most active in this regard.

Switzerland

It is one of the most progressive jurisdictions in the field of decentralised projects. The canton of Zug region, known as the “crypto valley”, has officially recognised DAO systems as a legal form of managing associations and funds.

The decision allowed entrepreneurs to partially integrate such services and work in the country legitimately.

Asia

Singapore and South Korea are seeing a large-scale surge of interest in decentralised technologies and DAO structures, but so far, this is not about full-fledged government regulation. Control over niche projects remains fragmented, without clear mechanisms for legalisation, taxation, and protection of market participants.

Ukraine

The law on virtual assets came into force in the country in 2022. The document sets out the basic rules for working with cryptocurrencies, but does not directly mention DAO.

At the moment, the state apparatus is actively implementing Web3 technologies in all key control processes. This is happening with the full support of the local Ministry of Digital Transformation.

The Future of DAO Technologies: Trends for 2025–2030

Decentralised management systems have every chance of competing with classic structures with a single control link. Interest in niche products is growing rapidly, forcing global markets, the public, and legal structures to more actively adapt to the new technological reality.

Key industry trends for the coming years:

1. The growth of hybrid models with DAO elements. Many casino platforms are expected to combine decentralised mechanisms with traditional management protocols. This approach will speed up the adaptation to regulatory requirements and, at the same time, allow for the implementation of more flexible UX solutions to retain the audience.
2. Integration of blockchain services with metaverses. One of the most striking and successful examples is the joint launch of DAO and the Decentraland cloud system. Such a powerful combination of technologies allowed project owners to create unique digital economies within gaming spaces.
3. Development of security and audit standards. There is a high probability of the occurrence of specialised government agencies and independent organisations focused exclusively on verifying DAO smart contracts. This will increase the level of trust from users, investors, and regulators.
4. Legal stabilisation of markets. Niche analysts predict that by 2030, major entertainment jurisdictions such as the US, EU, and Asia will develop and implement legislative mechanisms.

The Main Things about DAO Models in the Gambling Niche

Key aspects that operators should take into account:

• Casino visitors receive equal rights with platform owners in matters of management. This ensures transparency of all administrative and financial processes, turns decision-making into a more democratic process, and strengthens trust in the system.
• DAO structures have great growth potential. Experts predict that by 2030, decentralised models will receive legal recognition in major international jurisdictions. Today, their elements can already be partially used in the business environment in Wyoming, Switzerland, Ukraine, and some Asian countries.
• Decentralised administration increases audience engagement. By directly participating in the portal’s regulation, customers become personally interested in its sustainable growth and scaling.

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