Irrespective of the country you reside in, it’s likely that you have access to a national lottery game of some sort. In most cases, these are backed by centralized government agencies. But how do you know that the game is true and fair? The truth of the matter is we just don’t know. As such, Bitcoin lotteries are now a thing, with heaps of platforms offering the chance to win big in a fully transparent manner.
If you’re thinking about playing a Bitcoin lottery, be sure to read our comprehensive Bitcoin lottery Guide. We cover everything from what Bitcoin lotteries are, how they work, whether they are safe, and how much you can win (or lose). We’ll also discuss the 5 best Bitcoin lottery sites of 2020 so that you can get started today!
- 1 The best 5 bitcoin lottery sites for 2020
- 2 What is a Bitcoin lottery?
- 3 What are the pros and cons of Bitcoin lotteries?
- 4 What types of Bitcoin lottery games are there?
- 5 What are the odds of a bitcoin jackpot?
- 6 How to play bitcoin lottery online
- 7 FAQs
- 8 Is Bitcoin lotto fair?
- 9 What if my Bitcoin lotto platform doesn't use Provably Fair?
- 10 How much can I win when playing Bitcoin lottery games?
- 11 What is the minimum deposit amount at a Bitcoin lottery site?
- 12 How do I receive my winnings from a Bitcoin lotto website?
- 13 What is Bitcoin Keno?
The best 5 bitcoin lottery sites for 2020
In its most basic form, a Bitcoin lottery is not too dissimilar to a real-world lottery. If you’re based in the US, think along the lines of Mega Millions. Although there is now a range of variations to the game, Bitcoin lottery games essentially require you to purchase a ticket, which then comes with a set of numbers.
Once the game starts, a certain amount of numbers will be randomly drawn. The overarching aim is to then match as many of these randomly drawn numbers against the numbers displayed on your ticket. In doing so, you stand to win a real-world prize – all of which is paid in Bitcoin.
Let’s take a look at a quick example to make sure we fully understand the general process.
- You buy a Bitcoin lottery ticket, which costs the BTC-equivalent of $2.
- Your ticket consists of 6 numbers, ranging from 1-49
- The game starts, and randomly draws 6 numbers – ranging from 1-49
- You match all 6 numbers, meaning that you win the bitcoin jackpot!
In the above example, you’ll see that by matching all of the numbers on your ticket, you won the jackpot prize. The amount offered is typically a percentage of the total ‘pool’. The pool is made up by the number of tickets that were sold. For example, let’s say that $1 million worth of tickets were sold in your respective game. Taking into account the lower prizes that were won (for example for matching just 3 balls), the bitcoin jackpot might pay 70% of the pot, which amounts to $700,000.
What are the pros and cons of Bitcoin lotteries?
What types of Bitcoin lottery games are there?
It is important to note that the term ‘Bitcoin Lottery’ is quite a broad one. By this, we mean that there are different variations to the game. Irrespective of what version you go with, both ticket sales and prizes are usually paid in Bitcoin. However, some platforms do allow you to collect your prize in fiat currency, if this is something that you would prefer. Nevertheless, we’ve discussed the three main types of Bitcoin lottery games below.
1. Balls are copied from conventional lottery
One of the first-ever Bitcoin lottery games to reach the market was that of Lotto Land. In a nutshell, this particular branch of the Bitcoin lotteries space draws its numbers from real-world lottery games. This includes the hugely popular EuroMillions, US PowerBall and Mega Millions, and even the Irish Lotto. As such, there is no technology required, as the numbers you will be attempting to match are the same numbers drawn in the respective national game.
On the one hand, some players prefer this, as there is no input required from the platform in question. Players know that the offline lottery space operates in a heavily regulated environment, which in itself acts a safeguard against fraud and manipulation.
However, some players prefer to stay away from this branch of the Bitcoin lottery space, not least because they would rather opt for a ball-drawing process that allows them to verify the authenticity of the game.
2. Balls are drawn via Provably Fair
At the other end of the Bitcoin lotteries spectrum, a whole new version of the game exists – Provably Fair. For those of you unaware, Provably Fair was fist created by the founder of SatoshiDice – a Bitcoin dice game created in 2013. The underlying technology is backed by cryptography, meaning that regardless of what gambling game you are playing, you can be 100% certain that the outcome was generated fairly.
Not only this, but it is also possible to independently verify how the Provably Fair mechanism generated its outcome – as all of the data is available in the public domain. In the case of Bitcoin lotteries, Provably Fair is absolutely ideal.
Here’s how it typically works:
- You buy a ticket for a Provably Fair Bitcoin lottery game
- Your ticket and its corresponding numbers are registered – which cannot be amended or altered
- When it comes to drawing the balls, the Provably Fair mechanism will create a seed
- The underlying platform will then take a second random seed – only this time from entrants of the game
- Once both seeds have been hashed, Provably Fair will then generate the balls
- If you matched a certain number of balls and subsequently won a prize, the winnings will be paid to you automatically
One of the best things about Provably Fair Bitcoin lotteries is that the entire end-to-end process can be verified at any given time. This includes the exact amount of tickets that were sold, how much was paid, which addresses held a winning ticket, and most importantly – how the winning balls were randomly selected.
3. Balls are drawn via regulated third-party software providers
The third option that you have at your disposal is to use a Bitcoin lottery website that utilizes a third-party software provider to draw its balls. Firstly, this particular type of Bitcoin lottery game is different from the previous two that we have discussed thus far, not least because they are closer to ‘Keno’ than a traditional lottery game. Keno is very similar to a lottery game, however, winnings are not based on the number of tickets sold. Instead, winnings are based on fixed-odds.
For example, let’s say that 6 balls are drawn at random from a possible 50. The numbers run from 1-50. Prizes and paid when you match at least 3 balls from your ticket.
Here’s what each prize could pay:
➡️3 balls: 5x
➡️4 balls: 10x
➡️5 balls: 50x
➡️6 balls: 500x
As you’ll see from the above example, prizes are paid in multiples, as opposed to a percentage of the pot. As such, you can effectively set your own stakes. So, if you decided to buy a ticket at $5, and you matched 3 numbers, then you would win $25 ($5 ticket multiplied by 5x prize). Alternatively, if you staked $100 per ticket, you would win $500 for matching 3 balls ($100 ticket multiplied by 5x prize)
The second – and perhaps the most important aspect that sets this particular Bitcoin lottery game apart is the process used to draw the balls. In the vast majority of cases, platforms will partner with third-party software developers such as Microgaming, NenEnt, and Evolution. These software developers are not only required to hold full gaming licenses, but they regularly have their gaming data audited. On the other hand – unlike Provably Fair, the gaming data cannot be verified by the public, meaning that the ball-drawing process is kept behind closed doors.
What are the odds of a bitcoin jackpot?
Before you begin playing a Bitcoin lottery game, it is well worth making some considerations regarding your chances of winning. First and foremost, your specific odds will depend on a number of key factors. Notably, this includes the number of balls in the draw, the number of balls that will be drawn randomly, and the number of balls on your ticket.
However, in order to give you an idea of the underlying odds, we have taken the industry average – which is a 49 ball game with 6 numbers drawn.
➡️Matching 6 numbers = 1:13,983,816
➡️Matching 5 numbers = 1:55,492
➡️Matching 4 numbers = 1:1033
➡️Matching 3 numbers = 1:57
As you can see from the above examples from a typical 49 ball game, the odds are heavily stacked against you once you get past the 3 number requirement. As such, it is crucial to assess how much each corresponding win is going to pay. For example, let’s say that you match 3 numbers.
Although the odds of you matching 3 numbers are 1:57, will you be paid at odds of 57/1? Probably not. In fact, you’ll likely receive a lot less. While this isn’t ideal, people still play Bitcoin lottery in their drones because of the huge bitcoin jackpots that are offered for matching all 6 numbers.
How to play bitcoin lottery online
So now that you know the ins and outs of how Bitcoin lotteries work, we are now going to show you how you can get started. Follow our simple step-by-step guide below to find out how to register and deposit funds at a Bitcoin lottery platform!
Step 1: Choose a trustworthy Bitcoin lotto site
Your first port of call is going to be to choose a platform that hosts a Bitcoin lottery game. In some cases, these will be dedicated platforms that specialize exclusively in Bitcoin lottery games. In other cases, platforms will be a fully-fledged Bitcoin casino that hosts a range of Bitcoin lotteries alongside more traditional games likes like blackjack, roulette, and slots.
Before choosing a platform, you also need to assess what type of Bitcoin lottery game that you want to play. As we discussed earlier, this will dictate how the balls are drawn. For example, while some players prefer balls that are generated via Provably Fair, others prefer Keno-style games that are backed by regulated software providers.
If you’re still unsure which platform to go with, we would suggest scrolling to the top of our guide and reviewing the Top 5 Bitcoin Lottery Sites that we have recommended.
Step 2: Open your account
Once you have chosen your preferred Bitcoin lottery platform, you will now need to go and open an account. Although the process is similar across most platforms, we’ve decided to show you how to get started with DuckDice,
At the top of the screen, click on the ‘REGISTER’ button. A pop-up box will then appear asking you to choose a username. Once you have read and agreed to the terms and conditions, click on the ‘START WINNING’ button. Although you have just created an account by simply choosing a username, you should now go into your settings page and add a layer of security. This can either be via two-factor authentication or email notifications.
Step 3: Fund your bitcoin lottery account
Once you opened your account and added a layer of security, you now need to deposit some funds so that you can enter a Bitcoin lottery game. At the top right-hand side of the screen, click on the ‘MY FINANCES’ button. As you are depositing funds via Bitcoin, click on the ‘DEPOSIT’ button next to ‘BTC’.
You will then be shown your Bitcoin deposit address. This wallet address is unique to you and your Bitcoin lottery account, so make sure you keep it safe. Copy the address to your clipboard, and then head over to your external Bitcoin wallet. Finally, once you transfer the funds to your deposit address, the Bitcoin lottery platform should credit the funds within 1 blockchain confirmation.
Step 4: Buy your Bitcoin lottery tickets
As soon as your account has been funded, you can then proceed to start buying some Bitcoin lottery tickets. As you will see from the image below, the cost of one lottery ticket is 0.0001 BTC. At the time of writing, this amounts to just over $0.78 per ticket. Next, you then need to decide how many tickets you want to purchase for that particular game. Once you enter the number of tickets in, the total cost box will automatically update.
Finally, you then need to decide whether you want your ticket numbers generated randomly, or if you want to choose them yourself. This is very similar to the real-world version of the game, where you can choose your favorite numbers or get the machine to automatically generate them for you.
Step 5: Withdraw your winnings
If you are fortunate enough to win a game of Bitcoin lottery, you will then need to withdraw your winnings back out. Don’t forget, in the vast majority of cases you will need to withdraw your funds back out as Bitcoin. As such, head back into the ‘MY FINANCES’ section of your account, and then enter the amount that you want to cash-out.
Next, you need to enter your external Bitcoin wallet address. For ease, this can be the same address that you used to deposit the funds. As soon as you request the withdrawal, you should see the funds back in your external Bitcoin wallet within 10 minutes.
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Is Bitcoin lotto fair?
As long as you are using a platform that utilizes Provably Fair, then you can be 100% certain that each lottery outcome is true and fair. The Provably Fair protocol is backed fully by the art of cryptography, meaning that the outcome cannot be manipulated or pre-defined by the platform.
What if my Bitcoin lotto platform doesn't use Provably Fair?
If the Bitcoin lottery platform doesn't use Provably Fair, this isn't necessarily an issue. Some Bitcoin lottery websites will instead get their winning numbers from real-world lottery games like the EuroMillions or MegaMillions. Other platforms such as FortuneJack utilize third-party software developers who are regulated in the real-world, so this is also an option for you.
How much can I win when playing Bitcoin lottery games?
This all depends on the prize pool for the specific game you are playing. In most cases, all ticket sales will be pooled together, and then distributed to the winning players. A higher percentage of the pool is given to players that land the biggest wins, such as matching 5 or 6 numbers.
What is the minimum deposit amount at a Bitcoin lottery site?
As is typically the case across the entire Bitcoin casino spectrum, there are usually no minimum deposit amounts to worry about. Fiat casinos usually stipulate a minimum deposit because they get charged by financial institutions when facilitating debit or credit card payments. However, as you are depositing funds externally from your Bitcoin wallet, you can deposit as much or little as you like.
How do I receive my winnings from a Bitcoin lotto website?
Much in the same way as any other Bitcoin casino game, your winnings will be transferred directly into your private Bitcoin wallet. You will need to execute a withdrawal request from within your Bitcoin lotto account, and in most cases, the platform will then release the funds automatically. This means that you should receive your winnings within about 10 minutes of making the request.
What is Bitcoin Keno?
Bitcoin Keno is a type of lottery game that uses a fixed-odds system instead of pooling player tickets together. In fact, as you are playing against the underlying software algorithm, it's essentially you against the casino. The amount that you can win depends on the number of balls that you match, and the amount that you decide to stake on each game. Ultimately, Bitcoin Keno appeals to those that want to control their own stakes, and play at their own pace.