Online gambling takes 10% of total legal turnover in the world gambling business , while the trusted third party – online casinos – remain a black box for players and the market remains hard to enter for the game developers.
We propose a decentralised public system for gambling industry – DAO.Casino. DAO.Casino consists of a) an automated value distribution protocol acting as an mechanism of incentives and expressed in a system of Ethereum contracts b) a system that is capable of providing equally unpredictable pseudorandom numbers for the games.
We show how applying cryptoeconomics and implementing such system on Ethereum can solve some common issues in traditional online gambling industry through removing the need of trust ( i.e. automating crucial elements of online gambling industry that usually require trust reduce a risk of fraud and enable a new more sustainable business model to evolve), and also can minimise overheads for casino operators which allows higher payouts for the players and game developers to monetise their work. Auditability and cryptographic verifiability of Ethereum powered software potentially makes certification process for gambling games easier.
This document discusses design and implementation of such system from social and technological perspective on the abstract level: participant’s roles and in their interactions, random number generation for deterministic virtual machine, economic incentive mechanisms for the participants, and the system components that express the logic of value transfer. We describe an MVP that will be released in Summer 2017 and further development plans. Technical specifications for reward distribution system and bankroll backing system will be published separately during spring and summer 2017.