The Use of NFTs in the Entertainment Niche

About the Concept

NFTs can be explained as virtual assets based on distributed ledger. They are used to create, sell, or exchange exclusive items or rights in slots, cards, and action tournaments.

Physical money or crypto are interchangeable — one unit can be easily exchanged for another. Each non-fungible token contains a virtual signature that makes it unparalleled.

Possession rights are recorded in special cryptographic certificates. Data can be viewed but cannot be forged or deleted.

How NFTs Are Used in the iGaming Sector

The concept implies exclusive ownership of original objects.

With technology’s help, it is possible to:

• collect authentic items (skins, functions, and access to VIP offers);
• store unique elements;
• receive a stable income due to the increased value of tokens, etc.

Let us consider how such solutions are used in the gaming niche.

New Forms of Membership Programs

Thanks to NFTs in customer motivation systems, operators can create a unique user experience, improve audience involvement indicators, and facilitate communication with casino visitors.

The solution’s application options:

1. Exclusive rewards. They can be used to encourage any activity on the website: task performance, frequent account replenishment, publication of reviews, and winning large prizes. Players receive rare tokens and medals, confirming their high status. Such objects also provide access to closed tournaments, increased cashback, and VIP functions.
2. Personalised assets. Gamblers are offered unique collectable NFTs that become part of their profile. A good idea would also be to create a progression system. For each completed level, players will receive new tokens that reflect their success on the avatar.
3. Access to VIP programs. A popular technique is to use the described solutions as a digital key to enter the special system. Clients have the right to sell or transfer tokens, allowing other casino visitors to gain access to such privileges.
4. Remuneration in lotteries. This includes the organisation of instant or classic raffles, tournaments, missions, and other draws where NFTs are awarded instead of cash prizes. The tokens won can be used to receive discounts on deposits and take part in special rounds.
5. Referral programs. Virtual assets are given to customers who attract new visitors to the virtual portal. The more friends a person invites, the more valuable coins he receives.
6. Gamification systems. Unique tokens are also used to create seasonal quests and missions. They encourage clients to participate in sessions longer and improve their initial status.

Exclusive Funds

Main examples of their use:

1. Entertainment items. This category contains chips with an original design, coins with good multipliers, NFT spins with increased chances of winning and unique poker cards. Such options give punters a huge advantage during one-time draws and large multiplayer competitions.
2. Avatars. These are images with rare styles and animations, as well as special pictures that open access to premium features (VIP rooms and exclusive tables).
3. Collectables. Such chips, dice, and tokens are present only in a limited amount. They can be gathered, exchanged, or transformed thanks to thematic collections related to holidays, events, or popular entertainment.
4. Passes. NFTs provide access to closed zones and events with solid prize pools and additional benefits (tickets in CPA or accessories with the casino brand merchandise).
5. In-game improvements. This category includes cards with bonus functions (for example, with the right to change the distribution), skins, the lives of the main characters, multipliers, weapons, and other valuable artefacts. They provide an additional advantage during sessions and increase the chances of winning.
6. NFTs as “trophies”. These are digital awards that confirm the gambler's achievements. They are awarded for becoming a leader in tournaments, getting a higher rating, and being active on the portal. Such incentives can be demonstrated on the website and exchanged for bonuses.

Exclusive assets also include tokens, which can be used not only in casinos but also on their partner platforms. These are portable chips, skins, avatars, or bonuses.

Transparency and Safety

NFTs operate based on a distributed ledger. It makes transfers transparent and protected against manipulation.

The outcomes of sessions, the determination of the winner, and the awarding of non-fungible bonuses cannot be forged or deleted since all data is in public digital registries. These details are encrypted using cryptography: it can be viewed but not changed.

The security of such assets is especially important in the gambling niche because trust plays a key role in the relationship between entrepreneurs and their clients.

In-Game Economy

It is possible to exchange and sell NFTs to other users on external or built-in marketplaces, thereby forming a secondary market.

The new ecosystem expands the traditional capabilities of online casinos. It turns entertainment sites not only a place to relax but also a portal for financial interactions and investments.

Features of the in-game economy:

1. NFTs as a special currency. Customers earn assets through victories or execution of missions and then use them to buy bonuses and participate in tournaments.
2. Unique items. These are exclusive avatars, chips, or passes to VIP tables that can be resold on marketplaces.
3. Collectables and incentives. People often gather sets of tokens to get rewards or extra advantages. Such NFTs are usually presented in limited editions, which increases their value in the market.
4. Trading of tokens. They can be exchanged for built-in or external resources. Virtual casinos have the right to charge a commission for such operations.
5. Investment opportunities. Owning rare NFTs brings a stable passive income. These are percentages of bets in the selected entertainment, a commission for resale at a higher price, etc.

Benefits of Using Digital Funds

Let us consider the main advantages of such solutions:

1. Growth in Internet traffic. The described assets attract a young and technologically advanced audience, blockchain and cryptocurrency enthusiasts, as well as collectors. NFTs are especially popular with millennials who enjoy getting valuable coins in mobile casinos and betting apps.
2. Long-term engagement. Players who own rare virtual coins are more likely to return to the game to use or capitalise their sources. Loyalty programs with unique tokens also create a sense of belonging to an exclusive club. All this strengthens the connection between customers and online casinos.
3. Monetisation and new sources of income. Owners of iGaming portals can earn money, too, by selling such funds on the secondary market. To do this, they use specialised platforms (for example, OpenSea), increasing the liquidity of the business.
4. Protection against fraud. NFTs work based on a distributed ledger, which ensures the openness of transfers and guarantees that assets will not be falsified or stolen. This approach also solves the problem of customer trust in the entertainment platform, allowing project owners to build honest relationships between themselves, their clients, and B2B partners.

How Market Leaders Implement the Concept

The Evolution brand is considered a trendsetter in this area.

In September 2021, the provider released the NFT Megaways slot, which became the world's first solution with integrated tokens. It contains 4 digital art from the CryptoPunks collection.

Todd Haushalter, the company’s chief product officer, noted:

NFT Megaways is a game that took the crypto trend and turned it into an exclusive form of entertainment. This is the first video game of its kind, so players have every chance to become a part of history.

FunFair Technologies is another enterprise that integrates NFTs into its solutions. It allows customers to become owners of unique items and use them on various digital resources.

Virtue Poker is an online poker platform based on a distributed ledger. It uses exchangeable funds to provide unique elements and ensure openness of the results of card hands. The project was initiated by the ConsenSys blockchain developer.

PoolTogether is a breakeven lottery. All tickets are presented in the form of NFTs, which can be purchased on the company's website. The funds received are invested in decentralised financial products, and the winnings are automatically shared among the participants of the draws.

The Main Things about the Role of the Concept in iGaming

Key aspects that entrepreneurs need to take into account:

• The solution’s advantages include the growth of Internet traffic, monetisation, increase in revenue, and long-term audience involvement. Digital coins provide clear and secure interaction between users.
• The creation of unique assets and membership programs is the most popular option for using NFTs. With their help, it is possible to develop an in-game economy and get a good profit.
• Evolution, FunFair Technologies, and ConsenSys are pioneers in the field of creating entertainment content of this type. Providers integrate them into slots, lotteries, poker, etc.

We offer the following useful services:

• development of slots according to individual sketches;
• games for sale and rent;
• assistance in obtaining a licence;
• installation of payment systems;
• security software integration, and much more.