Exploring Provably Fair Technology in iGaming: What Operators Need to Know

One of the fastest-growing iGaming trends is ‘Provably Fair’. Many will have seen the term whilst exploring online casinos and sportsbooks. Still, few, except for the tech-savvy minority, fully understand how it works and its potential impact on the industry.

IGaming operators must work hard to meet the high standards and complex offerings that turn an average brand into a leading brand. In an industry where trust, honesty, and transparency are prevalent, provably fair technology is a useful power tool for operators to equip. It hands the power to determine fairness over to the players themselves, who can verify the authenticity and integrity of a game without relying on the assurance of the operator alone.

What is Provably Fair?

Provably Fair (PF) is a technology mainly used within iGaming that creates completely random game outcomes. Unlike other similar tools, such as Random Number Generators (RNG), provably fair is verifiable by the players after each game has ended using a provably fair calculator. 

By omitting third-party verification, provably fair offers fast assurance for players and quickly builds trust between the players, the game developers, and the operators. Each component of provably fair merges to create a result that external parties cannot manipulate.

How Does Provably Fair Work?

Provably fair technology built on cryptographic principles uses multiple elements that work together to determine a game result fairly without external influence. 

Key Components of Provably Fair:

The mechanics of provably fair are comprised of various components. Each component plays a part in making a system that players can independently verify. Imagine each element as a jigsaw puzzle piece that works together to complete the final picture. Here are some of the component terms you might see when reading about provably fair:

• Client (Player) Seed: A random number generated by the player’s device (or manually chosen), which ensures player involvement in determining the game outcome.
• Server Seed: A random number generated by the game server, kept hidden until the game ends to prevent manipulation.
• Nonce: A number that increments with every bet, ensuring each game round has a unique outcome.
• Hash: A cryptographic function that converts data into a fixed string, ensuring it cannot be altered or reverse-engineered.
• SHA-256: A specific secure cryptographic hash function that transforms data (such as seeds and nonce) into a fixed-length string, ensuring data integrity.
• HMAC: A hash-based message authentication code used to verify the integrity of the hashed data.

Provably Fair in Action

Still confused? Let’s break down a simple virtual dice game into a step-by-step format and see how it would work if it used provably fair:

1. Before the game begins, the server generates a server seed (e.g., “ABC123”).
2. The server seed is hashed to create a secure representation that can be shared with the player without them knowing the original, unhashed server seed.
3. The player creates a client seed (e.g., “PlayerXYZ”) or lets the system generate one automatically.
4. The game combines the hashed server seed, client seed, and nonce (set to 0 for the first round) to determine the outcome.
5. After the roll, the game reveals the original server seed, and the player can verify the result using a provably fair calculator.

Therefore, the final game result relies equally on the server seed AND the client seed. The outcome can never be predicted because neither party was initially aware of the other party’s seed before the game started, and neither party can alter the results retrospectively. 

Provably Fair Calculators

A provably fair calculator validates a game’s fairness after completion. To check whether the game result is fair, all players must do is input the server seed, client seed, and nonce into the calculator, and it will compare the game values with the hashed result to see if they align. 

The ability to independently check – using an operator’s tool or an external calculator – makes provably fair unique in iGaming. While not all players choose to use a calculator to verify the fairness of a provably fair game, the ability to do so alone often reassures players that, in this case, ‘what you see is what you get’.

Provably Fair Use Cases in iGaming

But how does provably fair work in action? Well, provably fair technology can be used in multiple ways across a variety of iGaming genres. While it’s primarily used in casinos, other applications are available to the technology. 

• Slots: Provably fair has the ability to randomise every aspect of slots, from spins and bonus features to wild symbols, game modifiers, and hit rates, providing players with a verifiable fair gaming experience.
• Sports Betting: While provably fair doesn't directly apply to sports betting due to the unpredictability of real-world events, it can be used in smart contracts to automate betting processes, ensure payouts, and prevent manipulation using blockchain technology.
• Live Casino Games: Provably fair adds an extra layer of transparency to live dealer table games such as blackjack, roulette, and baccarat, allowing players to verify the fairness of each round and game in real-time.
• Game Shows: Provably fair technology brings verifiable fairness to interactive game shows; players can check the ongoing immersive game setup throughout the interactive experience. 
• Lotteries, Keno, & Lottery-Style Games: Provably fair randomly generates numbers and game results that players and other interested parties can check.
• Fantasy Sports & Virtual Sports: In fantasy and virtual sports, provably fair guarantees fair outcomes in simulated environments.

Each of these genres can benefit from provably fair technology. However, its widespread use is still unestablished, though this will likely develop and change as technology progresses. 

Why Provably Fair is Good for Operators

For operators, adopting provably fair technology offers several advantages:

• Player Trust: Provably fair offers a level of openness between the player and operator that other similar technologies cannot do. Establishing trust from a loyal fanbase is an optimum way for operators to increase acquisition, retention, and engagement. 
• Professional Integrity: While provably fair technology is not mandatory, it can help operators maintain high standards within their brand, demonstrating trustworthiness to overseeing professional bodies.
• Reputation: Brands that work hard to show their dedication to honesty and fairness towards players and professional bodies will also improve their positive brand image.

Provably Fair – What Can It Do For You?

Provably fair technology has swiftly become a vital tool in the iGaming sector. As the presence of the tech expands into a broader range of game types across the vast global market, more operators may soon turn to the merits of provably fair to showcase their brand and enhance their credibility. Fairness and security are two of the most significant and crucial aspects of any successful iGaming brand. For iGaming operators in the know, taking the time to familiarise themselves with provably fair and how it can impact their business could be worth its weight in gold.

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