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I’m familiar with the online casino mission of FUN, but are there any plans to move into physical casinos as well? I consider FUN a casino chip 2.0 and find their position more defensible as an improvement on the classic casino chip.
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In an online casino, FUN is a specialized application of Ethereum that’s biggest benefit is that the design and development is focused on a singular use case. Once FUN validates this use case (which, as an investor, I’m hoping they do) what’s to stop more widely accepted projects with greater network effects from coming in and taking FUN’s lunch? We all know consumers have a preference towards liquidity and Ethereum is more liquid than its ERC20 counterparts (at least for the foreseeable future).
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However, I think FUN has an amazing opportunity to tokenize wagers at physical casinos and become chip 2.0. Based on a little research, casinos use chips instead of dollars for a few reasons: gambler psychology, security, convenience, and data.
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Psychology. Casinos use chips because it’s less painful from a psychological standpoint to lose some brightly colored representation of money than cold hard cash. Chips provide just enough abstraction from greenbacks that we perceive them differently and are thus willing to part with them more readily. I’m not a big gambler but have observed similar behavior in the way I use Venmo and even my credit card. I know it’s completely irrational, but I feel less pain completing a $100 venmo charge than I do forking over a wad of cash. This is not an uncommon psychological phenomenon as a long-known budgeting exercise is to pay for everything with cash over the course of a week to closely observe your cash flow and “feel” the cost of your expenses.
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I think FUN is superior to chips psychologically because it represents an even further abstraction of fiat. If big crypto (ethereum in this case) is a riskiemore volatile/[educated] gambler’s version of fiat and FUN is an abstraction of ethereum (as all ERC20 tokens are) then there are a couple of conversion steps for the user to get back to dollars. I believe the added conversion friction will play to FUN’s advantage when people are deciding whether or not to put it all on black.
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Security. From https://www.gamblingsites.net/casino/articles/casinos-use-chips-instead-cash/: “Chips provide casinos with an extra layer of security. Casinos control those chips and have a number of tricks they can use to discourage or foil those with criminal intent. A few years back, a man parked his motorcycle in the Bellagio’s valet area, ran inside with a gun and robbed a craps table for $1.5 million worth of chips.
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The Bellagio noticed that a good portion of the thief’s ill-gotten gains consisted of $25,000 denomination chips. A few days later, the Bellagio announced to the world that it would soon discontinue all of its current $25,000 chips. Those chips would all become worthless after the deadline set by the casino.
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This put the thief in the awkward position of having to cash in a lot of valuable chips in a short amount of time. He was later caught trying to sell his chips via the TwoPlusTwo.com poker forums. The “buyer” reported the attempted sale to police and the bandit was later caught.
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Some casinos also add RFID (radio frequency ID) chips to their chips. This allows them to keep track of their high denomination chips and easily detect frauds. If someone comes in with a bunch of clever counterfeits, those chips won’t authenticate and the casino won’t mistakenly cash out a bunch of fake chips.”
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So this is where FUN and blockchain tech destroys even the super-security-conscious RFID-enabled chips :). It’s as if immutable ledger technology was invented to solve this very problem. The security baked into the blockchain make chip theft and counterfeiting a thing of the past.
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Convenience. It’s more convenient to gamble chips than handling and counting a bunch of dollars, especially when gambling large sums. This is another area where fun is a step function improvement over chips. With FUN, everyone has their “chips” conveniently stored in a wallet and can choose precise increments they wish to wager.
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Data. “RFID chips allow casinos to catch dealer mistakes, to catch players who attempt to sneak in extra chips to the table after betting has closed, to track how chips move around the casino and more. Casinos can use this information to streamline profits, track trends and avoid losing money to crooks.” The transparency and availability of blockchain transactions is a dream for performing analysis of this nature. Casinos would easily be able to identify high rollers and perform analysis on gambling habits. This data can then be used for marketing and promotional purposes, designing new games or optimizing the floor layout, and comping players (hopefully in FUN).
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If casinos wanted to further idiot-proof the system and add a little friction to cashing out, they could issue proprietary hardware wallets on the floor. These wallets would be used to store FUN and feature a simple interface that would streamline betting.