Crypto wagering grew by over 18% in the first nine months of 2023, according to data from Softswiss. Do you think this growth trend has since continued, slowed down or sped up... and why?
We’re seeing crypto betting continue its upward trajectory, as it has for the decade since Bitcasino was founded. 2024 has been a significant year for the transition of cryptocurrencies and blockchain technology into the mainstream. We’ve seen Bitcoin hit an all-time high, crypto-focused ETFs received approval in a number of countries, including the US and wider adoption generally, particularly on chains such as Base and Solana. Remember, we’re still very early with this technology. It has only been 15 years since Satoshi published the Bitcoin whitepaper and no one could have predicted the speed of progress since then. Likewise with the online gaming sector, I think we’re only beginning to see what is possible with cryptocurrencies.
Bitcoin is the most popular crypto to place bets with by a mile. Do you think this will remain the case, or do you think other coins may stand a chance of gaining a wider percentage of the market share?
Actually, Bitcoin isn’t the most popular coin with which to play at online casinos and sportsbooks anymore. For many years it was the only game in town, but more recently we’ve seen a fairly decisive shift towards USDT betting. This is for a number of reasons: Bitcoin transactions can be slower and a little more expensive; there are faster and cheaper options now available on other chains; and players tend to like to see their bets denominated in more familiar Dollar or Euro terms.
When it comes to blockchains and coins that will grab market share, we’re really excited by Ethereum layer-2s, Base and Solana. They are more scalable than the original blockchains and give customers the opportunity to deposit and withdraw in seconds, rather than minutes.
What lessons can traditional online casinos take from crypto casinos?
Don’t be afraid of trying something new, particularly when it is focused on improving the user experience. Online casino has been a very conservative space for years now. There was very much a ‘if it ain’t broke, don’t fix it’ attitude. I think the growth of Bitcasino and a handful of other crypto-focused brands has shown that a lot of players want to see something new.
I’ve mentioned the benefits around near-instant deposits and withdrawals already, but this goes beyond that. Look at one small example – the crash game. As a genre, this didn’t exist a decade ago. It then grew in popularity over a few years in the crypto space and today crash games challenge slots as the biggest draw in many more traditional online casinos.
So, I’d say anyone looking to move web2 casinos forward should similarly be open to new products and new approaches.
What do you think are some of the weaknesses of crypto casinos as whole at the moment and what can be done to rectify these?
There’s still an educational challenge that we face. We work with this technology every day, but we need to remember that not everyone is on board yet. Some people are still doubtful about cryptocurrencies for several reasons; I’d argue against these reasons, but we have to acknowledge that this is a process. We work with fantastic operations such as LearnCrypto.com to help spread the word on why blockchain technology and cryptocurrencies are so important. We’ve come a long way in a short time, but there’s still far to go.
Crypto exists in something of a grey market, with a lot of governments trying to find ways to regulate it. Do you think the popularity of crypto betting would improve once a market regulates it?
It disappoints me to see the slow pace with which many governments are moving when it comes to regulating crypto. We absolutely need sensible regulatory frameworks which can help grow the space in a safe and sustainable way. Crypto is often mischaracterised as being dangerous, but the technology actually opens a lot of doors when it comes to improving standards around things like AML. We’d argue that our AML procedures are actually more thorough than most web2 online casinos, and that’s because of the way we’re able to analyse blockchain transactions. So absolutely, it is time regulators bring this into the mainstream.
What is it about crypto casinos that engage users?
I think it is fair to say more and more players are adopting crypto as part of their gaming experience. There’s also an entirely different audience out there who simply don’t find traditional online casinos particularly exciting. Many are crypto-native; they’ve grown up with this tech. They want to use it for everyday purchases, including playing at online casinos. These casinos have struggled over the last years to engage audiences, particularly the 18-30 demographic, which tends more towards esports and console gaming than sports betting and casino. Crypto is an opportunity to reach these people that have been underserved by the traditional sector.
Are there any engagement methods unique to crypto casinos? Why can they not be replicated by traditional fiat casinos?
I don’t believe the core proposition is fundamentally different. But it’s about things like where we reach audiences and the way we speak to them. Channels like Discord and Telegram are presenting new opportunities to onboard customers in ways the mainstream online casino industry simply never considers. Then we have the added dimension and instant connection that web3 can offer in addition. Over time, this might change and as crypto becomes more widely adopted, I would expect to see the two worlds continue to converge further.
Could crypto casinos ever directly compete against fiat casinos?
They already are – and in many instances, very effectively. Like I mentioned, there is a group of players who simply aren’t interested in the fiat online casino proposition. It’s why these operators are getting increasingly concerned about losing the next generation of customers to other entertainment options. Crypto casinos, such as ourselves, have been far more successful recently with this, and there’s no reason why our customer-centric, innovative approach to the vertical won’t continue to take market share from more traditional competitors.
Crypto is often mischaracterised as being dangerous, but the technology actually opens a lot of doors when it comes to improving standards around things like AML
