There’s always something exciting happening in the world of online casinos, but few things have changed the industry quite like cryptocurrencies and crypto casinos.
These platforms – which utilise blockchain technology and cryptocurrencies like Bitcoin and Ethereum – are rapidly gaining global traction. Crypto casinos are emerging as a new player on the market, offering a host of benefits in terms of security, privacy and accessibility. To see the global rise of crypto casinos and the reasons behind this shift, we delved into how they are transforming the gambling industry, creating new opportunities for players and operators alike, as well as challenges from a regulatory perspective.
One of the primary challenges in legalising crypto casinos in the UK is addressing regulatory concerns, especially regarding money laundering, user protection and ensuring fair play. Crypto casinos operate within a largely unregulated digital landscape where transactions are often anonymous, complicating efforts to monitor and regulate activities. What is a crypto casino? Crypto casinos work in a similar way to standard online casinos, except they have embraced blockchain technology by accepting digital currencies. This includes accepting Bitcoin, Ethereum and other altcoins for deposits, bets and withdrawals. They offer the same style of games and slots, but with the option to place bets using crypto.
While traditional online casinos use standard currencies – such as EUR, USD and GBP – and centralised banking systems, crypto casinos use blockchain technology. This decentralised and transparent approach has a number of benefits, such as offering players enhanced security, greater privacy and improved accessibility on a global scale. Plus, it’s an additional way for players to get involved in gambling. By accepting cryptocurrencies, these casinos provide an alternative to traditional online gambling, while catering to the growing demand of consumers.
Crypto casino figures
• Interest in Bitcoin casinos has quadrupled in recent years
According to TechReport, between 2019 and 2021, interest in Bitcoin casinos quadrupled. Plus, in 2022, around 4% of all online gambling searches were in some way linked to cryptocurrency. This shows a growing interest in crypto casinos and gambling using cryptocurrency.
• The growth of the global crypto gambling market
According to Business Matters, the global online gambling market is expected to reach $127.3bn by 2027. Of this, crypto casinos are projected to claim a significant share of the market. As more and more people accept blockchain technology, and it slowly becomes a viable option for spending money online, many users of online casinos are seeing the benefits of focusing their attention on crypto casinos.
• Bitcoin is the most commonly used cryptocurrency for gambling (although this has now been challenged, see page 20)
There are a wide range of cryptocurrencies currently in use, but Bitcoin is the most commonly used for gambling. According to TechReport, Bitcoin accounted for 73.3% of all crypto gambling transactions in 2023. In second place was Ethereum, with a much smaller share of 9.9%. Dogecoin was also listed as being one of the most commonly used, but with only 3.1% of iGaming bets, putting it a long way behind Bitcoin.
• Crypto bet sum has risen by more than 20%
In 2021, crypto made up nearly 8.5% of gross gaming revenue (GGR) for sports betting. This is a number that’s expected to continually increase going forward. Figures from TechReport also show that the crypto bet sum grew by more than 20% between 2022 and 2023, and the crypto bet count rose by over 50%.
• 62% of iGamers are interested in crypto gambling
In the US, 62% of iGamers that are interested in crypto gambling fall into the 18–34-year-old age bracket. Of this group, 62% of gamblers interested in crypto were men. This shows that the rise of crypto casinos is strongly backed by young males. It is also thought that the average crypto gambler is likely to be young, male and interested in technology, especially investments and trading. That’s not to say other gamers and gamblers aren’t interested in crypto gambling, however.
Factors driving the rise of crypto casinos around the world
1. Crypto is secure – Cryptocurrencies use blockchain technology, which is an extremely secure way of managing finances, compared to standard forms of banking. All transactions are recorded on a public ledger which, thanks to its transparency, reduces the risk of fraud and increases security. A lot of users choose crypto casinos because they can gamble knowing that their finances are safe.
2. There’s a Sense of Privacy – When using a crypto casino, players have an additional sense of privacy that isn’t always there when using a traditional online casino. Less personal information is needed when using crypto online. Players can enjoy their gambling activities knowing everything they do is private.
3. It’s a worldwide currency – One of the main factors driving the rise of crypto casinos is the fact that cryptocurrency is used around the world. Whereas EUR, GBP and USD have borders, crypto does not. Anyone with an internet connection can use crypto to gamble online, without having to worry about geographical restrictions and limitations.
4. Fast and free transactions – It’s often a lot cheaper to bank using crypto than other currencies, which is a draw for those who want to maximise their casino winnings. Players can deposit and withdraw funds, knowing they will arrive almost instantly and without costing too much.
5. Crypto casinos are transparent – Blockchain technology provides a transparent record of all transactions, which means it’s possible to keep track of game outcomes. This allows players to verify the fairness of games independently, which helps them to trust their casino of choice. 6. Crypto is an investment opportunity – The value of crypto can change at any time and this means using a crypto casino can be seen as an investment opportunity. Players can gamble using crypto, knowing that the value could increase even further.
7. Growing acceptance of crypto – As cryptocurrencies become more mainstream and accepted around the world, players are becoming increasingly comfortable with using them for online transactions. Crypto is slowly becoming the new ‘norm’ and players are starting to see crypto casinos as an option worth considering. This growing acceptance is driving the popularity of crypto casinos, as more and more players are trusting their reliability.
Challenges facing crypto casinos
Despite the rise of crypto casinos, there are some challenges that these platforms will need to overcome, especially if they want to continue to grow in popularity. With regulatory uncertainty – many governments and financial authorities are struggling with how to oversee cryptocurrency-based gambling – many casinos and consumers are hesitant to get on board completely. Plus, with the volatility of cryptocurrencies, there’s always a financial risk to both players and operators.
Crypto casinos in UK
It is for these reasons that crypto casinos are unlikely to obtain a straightforward UK licence and are likely to operate in the grey market niche.
In general, many of the popular crypto casinos operate under licences from jurisdictions like Curaçao or Malta rather than the UK. The Gambling Commission in the UK is known for its stringent regulations, and many crypto casinos choose other licensing bodies that offer more flexibility.
For UK players, it’s critical to:
1. Verify the licensing information on the casino’s website.
2. Ensure the casino follows fair play practices and has mechanisms for dispute resolution.
3. Consider the reputation and user reviews of the casino for additional assurance.
Next steps
Despite these challenges, the future of crypto casinos looks promising and GoGambling expects them to become increasingly popular. As regulations evolve to include crypto casinos and the technology improves, crypto casinos are likely to become a weighty component of the global gambling industry. The continued innovation and integration of new technologies will further enhance the appeal and functionality of these platforms, encouraging more consumers and operators to embrace cryptocurrencies.
