Bitcoin might be crashing, but crypto gambling is on the rise! Even though the price of the most popular and recognizable crypto in the world (looking at you, BTC) has fallen under $25,000 in June 2022, crypto gamblers still can’t get enough of their favourite online entertainment.
As more and more casino gaming platforms support crypto payments, an increased number of players want to take advantage of enjoying a completely different type of transaction. Decentralized payment systems, such as cryptos and altcoins, support a higher level of privacy, fast transaction, and arguably, a higher level of safety. Yet, is everything as shiny and bright as it seems?
source: Tradingview
Crypto Gaming in Numbers
In 2019, Research and Markets, a company specializing in data and market research, made a bold prediction that by 2022, the global gambling revenue will exceed $565 billion. To give it some perspective, we’ll just say that to reach that number, every single person on the planet must spend $68 on playing slots, table games, poker, or any other casino games, in any form. Regardless of how unbelievable those numbers might be, the chances are that they will be even higher after all is said and done with the 2022 reports.
“50% of all bitcoin transactions are related to gambling.“
Bi-monthly journal European Business Review noted how, although cryptos are not the most popular payment method in the casino industry, 50% of all bitcoin transactions are somehow related to gambling. Whether depositing or withdrawing, it is obvious how players have now recognized the crypto potential.
Namely, unlike traditional forms of payments, cryptocurrencies are decentralized, thus meaning there is no central authority over them. The lack of such control makes money transfers untraceable. There are no bank statements, no middle man, app notifications or calls from the bank, which helps gamers keep their habits a secret. Whether that is good or not is not for us to say, but we have to mention we always endorse responsible gaming.
Preferred Payment Method in Unregulated and Overregulated Markets
In 2019, Pew Research Center did an extensive review of the American crypto market, noting that one in three Americans, aged between 18 and 29, have been involved in using cryptos in one way or another.
“According to Pew Research Center, men use cryptos twice as often as women.“
The popularity of cryptos in the US is not surprising, especially in terms of gambling. Until just a few months ago, the US gaming market was very limited and highly unregulated. Such an environment, which can be best described as the Wild West, forced many players to find their daily dose of this adult entertainment in offshore online casinos. And cryptos became their weapon of choice.
The same goes for some markets on the opposite end of the scale. In overly regulated markets, players often face certain restrictions and discrimination at banks and loan companies if their transaction history shows they deposited at a gambling site. Considering that crypto deposits can’t be traced, there is not much to think about, and plenty of gamers find them to be a nifty alternative. Even players in the UK think cryptos are a nice way around the UKGC’s ban on credit card deposits.
Are Cryptos All Fun and Games?
From everything we said above, one could easily conclude how cryptos are the best thing that ever happened to casinos and sports betting fans. Yet, every coin has two faces, and crypto coins are no different.
Every fast-growing market is a fertile ground for scams and unethical companies looking to grab their share while they can. Players eager to try crypto gaming often forget about the dangers of unregulated gambling. Almost non-existent customer protection, shady licences, lack of responsible gaming tools, non-transparent bonus terms and withdrawal rules expose players to higher risks than ever before.
“Crypto gaming is often unregulated and provided by companies with no background information.“
Unfortunately, many of them are complete beginners who also have no idea that such dangers exist. Powered by adrenaline and the will to play, they often forget to approach the casino mindfully and carefully and sign up with whoever has the best deal.
On top of that, there is the danger all experts are warning of - volatility. Fiat currencies tend to be more stable and reliable. On most occasions, price movements are minimal and can’t cause financial damage. Cryptos are quite the opposite. Their value moves all over the place and can cause significant losses, not to mention stress.
Will the Craze Last Forever?
Bitcoin and Ethereum might not be in the shape of their lives, but they are here to stay. And honestly, it seems that the rise of crypto gaming still has to see its peak. For now, crypto gambling is predominantly popular in countries with no alternative, or they come with too high of a price tag. Yet, many others also notice the spike in crypto payments towards casinos and bookies.
With popularity comes the attention of regulators and other authorities, and this is where the crypto casino industry could receive the first fatal punches. China banned all crypto transactions. The U.S. Federal Reserve Board Chairman Jerome Powell warned on multiple occasions that cryptos desperately need regulation and a better legal framework. The Biden administration is trying to crack down on cryptocurrency payments. Governments in India and South Korea are diligently working on introducing taxes on crypto assets and more control over crypto transactions. At the same time, El Salvador was the first country to declare Bitcoin as legal tender.
Players are not the only ones with a focus on crypto, and increased interest may not necessarily be something the crypto gaming scene will benefit from. We can’t say what the future holds, but we can remind you that no matter where you play and how much you bet, one must never forget to set reasonable limits and keep this fun pastime on the safe side.