The colossal market of online gambling is expected to reach a towering $100-$110 billion by 2024. While traditional fiat currencies like USD and EUR currently reign supreme, the growth of cryptocurrencies has caught the attention of many who have begun to introduce it as an exciting asset in their online wallets. This article delves into the potential advantages cryptocurrencies hold for online gambling, exploring how they might become a more common global gambling asset in the coming years.
Is Crypto the Future of Online Gambling?
Though still a small fraction of the iGaming industry, Crypto gambling is projected to grow over $250 million in 2024, fueled by the rise of digital currencies and users of virtual experiences. For instance, a closer look at the user base, as done by Statista, reveals that by 2029, 281.3 million users are expected to be gambling online.
Interestingly, a separate report shows a growing preference for crypto, with over 12% of male and 11.1% of female gamblers globally using crypto for wagers in 2022. This suggests a potential slow shift towards crypto dominance in the online gambling landscape.
The American Boom: A Massive Surge in Crypto Gambling
The change is global. The United States, however, undoubtedly leads the way with its $9.5 billion online gambling industry and massive 650% surge in demand for crypto casinos, indicating a growing preference for crypto as a gambling tool. Fueled by surging demand for crypto as an economic asset and relaxed gambling laws, US online gambling will soon experience a significant shift towards cryptocurrencies.
Growing Interest in Crypto Gambling in Europe
In fact, the American online gambling market is becoming more like Europe’s, where generally more favorable regulatory environments, high levels of digital literacy, and stable economic conditions make crypto gambling more appealing.
According to a recent study, countries with higher GDP per capita (e.g., Switzerland, 181%, Italy, 108%, Norway, 126%) show significant growth interest in crypto gambling based on searches on a year-on-year basis. The same is true for the Netherlands (60%), France (50%), and Germany (53%).
Around the World
In the case of developing nations, the rise of crypto gambling in emerging economies might be influenced by the grassroots adoption of cryptocurrency. Countries like Vietnam, India, Mexico, and Argentina are witnessing significant growth in crypto usage, driven by factors such as high inflation, currency instability, and limited access to traditional banking services.
This is evidenced by countries such as Vietnam (89%), India (83%), Mexico (129%), and Argentina (52%), which show the largest interest growth from surveyed countries, followed by the Philippines (23%), Brazil (23%), Australia (14%), and Indonesia (22%). In these regions, cryptocurrencies are not only seen as speculative assets but also as practical tools for everyday transactions, which might also contribute to the increase in crypto for iGaming.
The Allure of Crypto: Bonuses and Beyond
Regardless of location, however, Bitcoin (BTC) remains the undisputed global cryptocurrency, accounting for 73.3% of all crypto-gambling transactions in 2023. One major draw for crypto gamblers is the potentially lucrative welcome bonuses offered by some crypto casinos by paying with one of the leading cryptocurrencies.
If you were to play casino with Bitcoins at Bovada, for instance, you would unlock nearly $4,000 worth of a hefty welcome bonus. But the appeal goes deeper than just Bitcoin or casino bonuses. Crypto transactions offer several advantages over traditional fiat that are related to the benefits of blockchain technology and cryptocurrencies in and of themselves, spanning security, anonymity, and lower transaction fees.
Fiat Stability vs Crypto Volatility
Compared to fiat, cryptocurrency’s high volatility, however, is a double-edged sword for online gambling. While rapid swings in supply, demand, and sentiment can create exciting opportunities, they also lead to significant price fluctuations. This volatility can worry gamblers using crypto at online casinos, as the value of their currency could change drastically before a bet is settled.
Simply put, fiat offers stability, familiarity, and is universally accepted, making it ideal for risk-averse gamblers. Crypto, on the other hand, presents the thrill of potentially high returns and faster transactions, appealing to those comfortable with volatility.
A Shield Against Volatility
However, many crypto casinos have taken note and now offer quick solutions. Platforms like Bovada, for instance, offer the convenient possibility of converting cryptocurrency deposits to stablecoins (like USD Coin) or actual fiat currency upon receiving them in their casino balance.
This approach minimizes the impact of short-term price swings on your gambling experience,, allowing for a more integrated approach to a hybrid mode of crypto-gambling.
Volatility, An Advantage
The inherent volatility in crypto also presents an exciting opportunity for savvy gamblers. By carefully managing their bankrolls and taking advantage of the solutions offered by some crypto casinos, such as the ability to convert deposits to stablecoins, players can potentially capitalize on the rapid price swings and maximize their winnings.
A Hybrid Future
The growing user base embracing crypto, the potential advantages it offers, and its increasing popularity across continents suggest a future where crypto secures a larger space in online gambling. However, it’s unlikely to completely replace fiat, which is not only more widespread but more regulated in the global economic market.
Cryptocurrencies, however, are undoubtedly making a loud and significant impact. As the online gambling industry evolves, it will likely embrace both fiat and crypto, catering to the diverse preferences of a global audience.