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Atari to launch cryptocurrency token for use in casinos, gaming platforms

The gaming giant believes that cryptocasinos could be the next big thing.

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Atari has revealed plans to create a company token and potentially develop cryptocurrency-based casino platforms.

The company, commonly associated with arcade classics such as Asteroids, Pac-Man, Space Invaders, and Pong, seems to believe new life can be breathed into the casino industry through cryptocurrency.

Last week, Atari announced plans to create its own cryptocurrency variant, called the Atari Token, which would be "associated with a blockchain platform in the field of entertainment."

In order to facilitate the project, Atari has secured a small stake in Gibraltar-based Infinity Networks. Under the terms of the equity deal, Atari has not provided a cash investment, but rather has permitted the firm to use its brand under a long-term licensing agreement.

"The company is developing a decentralized platform giving access to any form of digital entertainment, that is to say, a very wide offer ranging from video games to movies and music," Atari says. "This platform, under development, will operate using a cryptocurrency, the Atari Token."

However, this investment in cryptocurrency and the blockchain is only one part of the puzzle. While Kodak's recent venture into tokens and Initial Coin Offerings (ICOs) is now facing severe regulatory hurdles due to unbridled investor interest, Atari seems to have a project in mind to make the Atari coin a potentially valuable asset.

The industry? Cryptocurrency-based casinos. This appears to be an area few have considered, but the shift in interest from cash to cryptocurrency does make the concept of cryptocasinos conceivable.

While Atari's investment in Infinity Networks is the firm's first foray into blockchain technologies and cryptocurrencies, the company has also extended its partnership with gaming platform Pariplay.

This year, Atari and Pariplay plan to launch casino platforms which "allow players to bet either in real money or with most crypto-currencies currently outstanding."

See also: Russian Nuclear Center engineers arrested for using supercomputers to mine cryptocurrency

Drawing on retro game nostalgia, Atari also plans to launch the "Pong Token" to ignite interest in the cryptocurrency casino project.

It's an interesting idea. In exchange for licensing, Atari has very little in terms of cash to lose.

Should the project fail, it will simply end up on the heap of blockchain and cryptocurrency-related projects which have crashed and burned.

However, the idea of cryptocurrency-based casinos -- whether or not they are tied with retro games -- may push the brand forward should gamers take an interest.

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