NFT – Defining the Future of Online Gaming

Published by Sheena Jade on March 17, 2024

In 2009, Satoshi Nakamoto released Bitcoin, and in doing so completely changed the way we look at finance, trading, investment, and everything that comes close. In a sense, he opened the gate to a new digital age, and defined the future of online shopping, as well as land-based economics. The success of cryptocurrency, naturally, led many to attempt making their own version of Bitcoin. Thus, altcoins like Ethereum, Tether, Ripple, and more came to be.

However, there were plenty of like-minded people, who showed no interest in finance, but found the concept of decentralized currency intriguing, and thought about applying it to other aspects of society. Thus we came to non-fungible tokens, or NFTs. But, what are NFTs, have they gained any prominence, and how do they define the future of online gaming? These are all questions that we are going to tackle in this article. So, without further ado, let us delve into the correlation between NFTs and gaming.

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What are NFTs?

Non-fungible tokens, or NFTs, are digital assets, most commonly associated with a work of art of some kind. The art has been digitized and then tokenized, using a blockchain, which as many know, is at the very core of the crypto market. Without blockchains, we wouldn’t have any of the top ETH casinos that attract new customers to the iGaming industry, because we simply would not have cryptocurrency. However, the blockchain can be used for so much more than just crypto. In fact, its potential is limitless.

For example, it can also house NFTs. The token stored on a blockchain represents a proof of purchase. In other words, the buyer owns the asset, though it is not in their possession. Instead, they’ve acquired a token which shows them as the owner. Meanwhile, the asset is stored somewhere else. The interesting part is that NFTs can then be traded, sold, or exchanged for another asset, crypto, or even for FIAT currency. However, their value is not inherent, but rather depends on the value the owners and the market have decided on.

This means that, a piece of NFT art could be sold for thousands of dollars, only to end up being worth nothing. Of course, the alternative is also true; an NFT piece could be traded for only a couple of dollars, only to skyrocket in value, and sell for thousands. Crypto traders will certainly be familiar with this level of volatility. It is the same kind that the crypto market has to deal with on a daily basis. The difference here, is that NFTs are even more volatile, which is why many are put off by the idea.

But, what does any of this have to do with online gaming? Certainly, plenty are aware of how crypto can, and is being used by casinos, especially in 2025. Nowadays, you would be hard-pressed to find a gambling website without a crypto option. Some of the more famous ones even started out as purely crypto casinos, before venturing into other payment methods. However, while one can easily understand how crypto can be applied to casinos, NFTs are a little bit more difficult. So, let us take a look at the correlation between gaming on the internet, and non-fungible tokens.

NFT Integration in Online Gambling

Since we brought up online casinos, why not start with the iGaming industry. Plenty of casinos have attempted to integrate NFTs into online gambling, with varying degrees of success. One of the simplest ways to do so, is simply to allow the investment of NFT units as a form of gambling currency. Basically, a gambler might be able to wager their stake in an NFT, in lieu of any crypto or FIAT currency amount. That being said, most online casinos don’t allow NFT wagers in that manner. There are certainly some that do, so if that seems like an interesting concept, finding a business that allows it is the first step.

A more common way of integrating NFT in the gambling industry is the introduction of NFT-based tournaments. Gambling tournaments are a relatively new trend, but they’ve already become a staple of the online casino market. Players can participate in gambling competitions of all sorts, hoping to win different rewards, including monetary prizes, bonuses, and sometimes, NFT-based awards. In this case, the prize might be a stake in an NFT, or a token proving ownership of one. The reward could also be an NFT that gets you access to exclusive programs and rewards, boosting player engagement further.

Finally, NFTs could be used as a way to collaborate with other, NFT-based platforms. The online casino industry is thriving, and it is now the perfect time to focus on collaborative efforts. For this, NFTs could present an excellent tool. Working with other platforms could result in some cool new features, exciting games, and serve as the start of a whole new adventure in the world of gambling. That being said, there is a major concern when it comes to NFT-based gambling. The same concern has also been talked about when crypto casinos are brought up.

NFT HD

Of course, we are referring to the volatility, which we’ve already mentioned when talking about NFTs. Gamblers are no strangers to variance in their games. However, crypto exhibits a far greater degree of volatility. Even when compared to Bitcoin, and other standard digital currencies, non-fungible tokens are considered volatile. As we said, their value is dictated by market demand. Which means, if the market is disinterested in a certain NFT, the token will not be worth squat.

On top of that, regulation is a pretty big concern. Rather, the lack-there-of. Because non-fungible tokens are a decentralized asset, there isn’t much that can be done in the way of regulation. The same is not true for crypto casinos, however. Whereas governments don’t have the authority to regulate crypto, they can still regulate the casinos that use digital currency. So, crypto casinos are still safe and reliable, as long as they are licensed. With NFTs, that same level of scrutiny simply can’t be applied. That is why a lot of gamblers avoid completely NFT-based casinos.

How NFTs Could Be Used in Online Gambling

The integration of NFTs in online casinos is certainly impressive. We talked broadly about how gambling websites could use non-fungible tokens to enhance player experience. In this section, we’d like to give some more specific examples of NFTs boosting enjoyment. The truth is, that through the use of NFTs, players can customize their screen, unlock specific prizes, and even find themselves, in some way, affiliated with celebrities. “How?” you may ask. That is what we are here to discuss.

Celebrities hopping on trends is nothing new. However, NFTs were an incredible hit when they first gained prominence. A lot of celebrities sponsored, backed, or even created their own non-fungible tokens. It is, for example, entirely possible to purchase an NFT backed by a celebrity, and get a personalized version of the piece. A lot of gambling platforms got a hold of celebrity-endorsed NFTs, and made it possible for players to win them in tournaments, or special, NFT-based games.

Speaking of special games, the gamification of the gambling market has not gone unnoticed. Players can now compete, win prizes, and even unlock special in-game artifacts. One of the ways that online casinos make these artifacts seem more exclusive is by giving them away in the form of non-fungible tokens. In much the same way, video games have begun using NFTs as well, creating a more engaging gaming industry.

Visual and Aesthetic Benefits

NFTs also could allow players to customize their casino profile, creating a unique interface, tailor-made for each individual. This creates a sense of individuality and uniqueness, which is sorely lacking in the iGaming industry. But, believe it or not, the iGaming market is not the only gaming industry where NFTs are being used. Tons of online games have also taken to using NFTs, in an attempt to improve player experiences.

Finally, NFT artwork could help elevate a casino’s visuals, creating new and exciting sights for players to enjoy. Slot games would particularly benefit from this, as themed games are all the rage right now. Through NFT visuals, players could experience a whole new world of slots, which might excite both new and long-time gamblers.

NFTs in Online Gaming

The video game industry is thriving right now. More and more people are getting into competitive play, and even single player games are seeing an increase in sales. It is no wonder that game developers are desperate to innovate, and maintain their newly found audience. NFTs are just one of the ways through which game creators are trying to impress their new customers.

We mentioned before that online games use NFTs as tokens to unlock special, in-game artifacts. When a player in a particular game achieves a certain goal, they might be issued an NFT as a reward. The NFT could be used to unlock a gaming artifact that either boosts the player’s skills, or unlocks a hidden quest. It is a great way to engage players who’ve done a good job in the game.

Customization is also very important to certain players. We talked before about how NFTs can be used to customize the casino interface at gambling sites. Well, in video games, non-fungible tokens could be used to customize the character. NFTs could help you alter their appearance, their clothing, and even their equipment. Customization might not boost the player’s abilities, but it does give each PC a sense of individuality, which in turn helps players feel distinct from one another.

Finally, some game developers have even managed to create entire games on a blockchain. In this case, the non-fungible token might serve as a key for players to access the game, and prove that they have purchased it. A few years ago, NFT games were all the rage. However, over time, people have sort of lost interest in non-fungible tokens. Some have asked why that is. We are going to tackle that question, in the next section.

Why NFTs Lost Their Hype

One of the reasons for why NFT lost the traction it was gaining has a lot to do with market saturation. In an ironic twist of fate, NFTs became too popular, too quickly. Everyone was trying to launch their own NFT, or profit off of the popular ones. This resulted in people losing interest, as NFTs were becoming too expensive. Thus, nobody was buying them, and so they quickly began losing their value. A non-fungible token’s value is dictated by the market, so when the market lost interest, NFTs lost their purpose.

Another reason for the downfall of NFTs is environmental. It is absolutely true that the production and maintaining of NFTs requires a lot of energy. The energy-intensive process contributes to carbon emission. In a time when environmental concerns are at an all-time high, a market that heavily relies on energy waste is simply unsustainable. Indeed, part of the reason that many people lost interest in NFTs is because they learned about the impact non-fungible tokens have on the environment.

Of course, many have addressed this concern, saying that it is a misunderstanding that blockchains have such a profoundly negative impact on the environment. However, whether it is a misconception or not, the idea is still prevalent. This, in and of itself makes NFTs controversial. That is why, most video game companies would rather stay away from NFTs at this point. The same is true for casinos. After all, most businesses want to remain neutral when it comes to serious issues, and embracing NFTs might alienate those who are staunchly against the idea.

Conclusion

The integration of non-fungible tokens in the gambling industry has certainly been attempted, and has had various levels of success. Some were ecstatic to see these new concepts used in the online gaming and gambling industries. Others were not too keen on the idea of NFTs in the first place, so seeing them being integrated may have soured them on iGaming in general.

Regardless of one’s personal opinion, there is no doubt that NFTs can have a positive effect on the industry. However, it is also true that the NFT market is an unstable and volatile one, which could lead to certain issues with safety and security. Indeed, part of the reason why NFTs are no longer as popular as they were a few years ago, has a lot to do with their instability.

Author : Sheena Jade

Sheena is part of the Casinofy team, creating content and reviewing online casinos. As a casino explorer with a decade of experience, she delivers quality information on top casinos.