BetCoin Ups the Ante for Bitcoin Gaming

NEW YORK (TheStreet) -- One of Skype's earliest investors has achieved millions of dollars in cost savings on its Bitcoin gaming platform, since its foray into cloud gaming and its ensuing partnership with Amazon (AMZN).

Massive Luck Investments, a technology-investment holding group based in Hong Kong, has been able to save hundreds of thousands of dollars by slashing 75% of costs involved in managing operating servers to run its high-payout dice platform, BetCoin, which includes exclusive games such as BetCoin Dice, BetCoin Circle and BetCoin Prize.

The investment outfit partnered with Amazon Web Services a year ago to leverage the cloud computing services of the Seattle-based e-commerce giant for building, distributing, scaling and monetizing its suite of million-dollar games.

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"Amazon has brought our costs down to a minimum. Its software offers the most value for every dollar spent," Wayne Barclay, chief technology officer at BetCoin told TheStreet in an interview from Hong Kong.

The practice of using the cloud has caught the attention of Bitcoin casinos that are exploring how they can leverage emerging gaming technologies to become positive disruptive players in a rapidly growing $6 billion online gaming market.

The acceptance of Bitcoin by large companies such as Overstock.com (OSTK), Zynga (ZNGA) and Dish (DISH) has helped raise the virtual currencies value from a paltry 30 cents in 2011 to a steady $600. Dell (DELL) is the latest to pilot Bitcoins as a purchase option.

This momentum is offset by a spate of cybersecurity risks that casinos and gaming companies have been facing. These include account security issues, customer protection concerns and threats from hackers and gaming network competitors.

To combat those hurdles, BetCoin has partnered with Imperva  (IMPV), a data traffic security provider based in Redwood Shores, Calif. Imperva protects BetCoin from network-level distributed denial of service (DDOS) attacks initiated by hackers or unscrupulous competitors to steal information or sabotage a site.

When DDOS attacks occur, multiple compromised systems are used to target a single system. These systems are usually infected with a Trojan horse.

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