Lottoland has launched the world’s first licensed random lottery draw using a cryptocurrency as a jackpot. Lottoland is licensed in the gaming-friendly British Overseas Territory of Gibraltar. Lottoland held their first Bitcoin Lotto yesterday at 8:30 pm GMT.
The game uses the standard 6/49 numeric draw system, common in most lotteries around the world. With no bonus ball required, the odds of winning are quite high compared to other lotteries. Lottoland says players enjoy a decent 1 in almost 14 million shot at winning the jackpot.
Speaking of the jackpot, Lottoland debuted the Bitcoin lotto with 1,000 bitcoins as the jackpot prize. With Bitcoin trading at roughly AU$23,000, the jackpot becomes a fairly decent AU$23 million. No player was able to match the six winning numbers on the first night’s draw.
Each Bitcoin Lotto ticket costs roughly AU$5.50. Lottoland asserts that the chance of winning the lottery is at least ten times greater than winning a EuroMillions jackpot.
APPEAL OF GAMBLING WITH BITCOINS
Part of the appeal of gambling for bitcoins is their volatility. Lottoland CEO Nigel Birrell mentioned that one thousand bitcoins could be worth AUS$23 million today, or double that number tomorrow. He further said that he believes Bitcoin is a worldwide phenomenon and Lottoland is giving customers an opportunity to be a part of that. To highlight how volatile bitcoins are, the jackpot from yesterday would be worth about AU$950,000 less today, as the cryptocurrency is trading at less today than it was yesterday.
Bitcoin Lotto results will take place each night except Sunday, with the results coming from Spain’s BonoLoto drawings. The great advantage of Lottoland draws, is that jackpot payouts are typically paid out in a lump sum, and the company also usually provides better odds at winning. The only drawback is that Lottoland is not actually a lottery operator, the company takes bets on the outcomes of other government-sponsored lotteries. This means the company doesn’t need to benefit any non-profit organisations, which most worldwide lotteries do.
LOTTOLAND BITCOIN LOTTO PRIZE TABLE
In addition to the 1,000-coin jackpot prize, players will also be paid out one bitcoin for correctly matching five numbers, AU$75 for matching four, AU$7.50 for matching three, and roughly AU$2.2 for matching two. This is after currency exchange.
Even though Lottoland players are not in the same prize pool as the physical ticket holders of the lottery being used, the online betting agency will reduce the jackpot if physical ticket holders also win.
For instance, if there are two lottoland winners on the Bitcoin Lotto, and there are also two physical ticket winners of the Spanish BonoLoto jackpot (Which is the jackpot Bitcoin Lotto uses to base its numbers off). The two Lottoland winners would each only receive 250 bitcoins as the prize is “shared” between four winners.