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SatoshiDice Bought for $11.5 Million

Casino Operating with Bitcoins Bought for Huge Sum

Added: July 20, 2013

Everyone has been talking about how Bitcoins will be the solution to the complicated processing of payments casino players deal with everyday. For those who are unfamiliar with the topic, Bitcoins are a virtual currency and, as of today, their exchange rate is 1 Bitcoin = USD $91. Great evidence of the rapid growth of the Bitcoin is the fact that an online gambling website that uses Bitcoins as its main currency, SatoshiDice, was bought for an outstanding value.

SatoshiDice announced that it sold for 126,315 Bitcoins to an anonymous buyer, the deal was announced this week through a shareholder statement. The total value of the sell is USD $11.5 million. The casino was first introduced in April of 2012, and after only one year of operations it has reported monthly revenues with a $50,000 surplus every month. So far, about 5.3 million bets have been placed on the site and it continues to grow.

SatoshiDice is a unique casino since it offers players a chance to place wagers on a number on a dice, if the wager is placed on a number lower than what is on the dice, the player wins. However, the true significance of this deal is that Bitcoins are becoming a powerful payment method in the online casino industry, as it proves itself efficient and reliable.

"While I know some S.DICE owners intended to hold for a long time, and will thus be dismayed by the buyout, it is my sincere hope that this compensation level will be amenable. It is substantially higher than the contract mandates, and it is almost 3x higher than all private owners are being paid. It has not been easy to negotiate to this level, but I believe it is the right thing to do," said SatoshiDice Founder, Erik Voorhees, when asked about the reason for the deal. He continued, "The deal is the first significant buy-out of a Bitcoin industry company and highlights the potential revenues and money that is circling around the industry."

It is refreshing to hear about these developments in our industry, particularly since payments are what restrain many people from playing online and often frustrate many active players. Hopefully, Bitcoins will continue to pick up more online casino customers so that it becomes an available option for players all over the world.

Good luck at the tables this weekend!