What Is Provably Fair Wagering Technology?
Provably Fair gaming technology is a term that is used often in the iGaming industry. Provably Fair means that a bettor can independently verify their game results without relying on a 3rd party. We will go over this in more detail later on, but first lets go over a brief history of Provably Fair gaming.
The history of Provably Fair gaming
Provably Fair wagering technology has been around for almost a decade. For much of that decade, Provably Fair games were exclusively available to cryptocurrency bettors, most commonly in the form of dice or crash based games, such as Primedice. Provably Fair was particularly important for cryptocurrency bettors because in the early days of the cryptocurrency gaming market, the majority of iGaming platforms for crypto bettors were not licensed, and included games that were not certified.
Since the majority of operators were anonymous, and were utilizing new casino games, there was an inherent issue of trust. Provably Fair technology allowed bettors to have peace of mind knowing that the casino they were wagering on was not stacking the deck against them. Over the last few years, some online casino software providers have started expanding their portfolios to include some Provably Fair options for operators, and for table and slot games instead of just dice or Crash.
Why is Provably Fair important for the iGaming industry?
For those who have ever placed a bet and lost, you have almost certainly felt at one point that you were playing a rigged game. Even if the game you were playing was hosted by a trusted brand, and the random number generator (RNG) was certified by various respected groups, and you knew deep down that you were not actually being cheated, it probably didn’t feel good. Now you can know, with mathematical certainty, that you won or lost in a fair manner.
Outside of providing bettors peace of mind, Provably Fair technology also serves a rational utility for operators. One of the worst things that can happen to an operator is a game malfunctioning. When a game malfunctions, a player is mistakenly led to believe that they just hit a jackpot. Now the operator is facing a public relations nightmare, in addition to most likely being hit with a lawsuit. Even if an operator resides in a jurisdiction where there are legal protections for malfunctioning games, no one wants the reputation as a casino that does not payout. Provably Fair mechanisms ensure that the outcome is accurate – and when combined with smart contracts, can mitigate the risk of a malfunctioning game. You can learn more about cryptocurrency, blockchain and smart contracts here.
How can you prove the results without a 3rd party?
Lion Gaming’s online casino software is able to provide Provably Fair games using the following method:
- First the deck is shuffled server side, and then presented to the bettor with a hash of the shuffled deck before any wagers are made.
- Whenever a bettor places a wager, they provide a client_seed to the operator, this is generated randomly in the bettor’s browser or they have the option to select it by hand.
- The client_seed is then used to reshuffle the deck in a deterministic way leveraging the Fisher-Yates shuffle algorithm.
- At the end of the game, the initial shuffle is revealed, allowing the bettor to verify that they were presented with a valid hash, and that the deck was reshuffled in the correct manner. Since the operator does not know the value of the client_seed until the hand is dealt, there is no way for the operator to manipulate the outcome of the game.
When combining Provably Fair games with on-chain wagering capabilities, operators are able to offer bettors a user experience that removes the need for trust, by ensuring games that are fair, recorded in an immutable manner, and where payouts on wins are automatically distributed. In order to utilize our on-chain wagering software solutions, the operator must use our web3 or native wallet cryptocurrency solutions due to the use of smart contracts. Our white label casino software is designed so that our clients customers are not required to use on-chain software if they do not want to, as all of our games and our sportsbook features the ability to toggle on-chain wagering ON or OFF depending on their personal preference. Learn more about on-chain wagering here.
Contact [email protected] today to reduce your risk of malfunctioning games, provide your players with a sense of security and pleasant gaming experiences, and to differentiate yourself from your competition with Lion Gaming’s suite of Provably Fair games – all available in our white label casino solutions.