At first, we’ve had difficulty understanding what cryptocurrency is, and let’s be honest, it still raises many questions. Now, we face an even more complex quandary: What is Crypto gambling? A trend that has become one of the fastest-growing and least understood parts of the digital asset space. According to a report in the Financial Times, in 2024, crypto casinos generated over $81 billion in gross gaming revenue (GGR) – a fivefold increase from 2022 – according to data from Yield Sec, a platform tracking online gambling activity. That number puts crypto casinos on par with some of the largest regulated gambling companies in the world.
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Platforms like Stake, Rollbit, and Roobet are central to this boom. Stake, in particular, claims to have processed 300 billion bets and says it now accounts for up to 4% of total Bitcoin (BTC-USD) network transactions. It brought in $4.7 billion in GGR last year, up 80% from the year before. For comparison, Flutter Entertainment (FLTR) reported $14 billion in total revenue in 2023, while Entain (ENT) and Bet365 each earned in the $4–5 billion range.
Strong Fundamentals on the Face of It
To crypto investors, this might sound like validation. High volume, steady user growth, and big-name partnerships (Stake sponsors Everton FC from the English Premier League) suggest strong fundamentals. But beneath that growth lies a set of risks that are easy to overlook, especially for retail investors who follow on-chain activity or invest in tokens tied to these platforms.
First, much of this activity skirts regulation. Crypto casinos are banned in many countries, including the U.S. and the UK, but users can still access them with VPNs or mirror sites. Many platforms also operate through “white label” licenses that allow them to serve users in regions not directly authorized. This kind of regulatory loophole is attracting attention. In the UK, authorities issued 287 cease-and-desist notices in just one year for platforms accepting crypto deposits.
Second, while many of these casinos promote “fair odds” and high-speed play, they often don’t enforce basic checks like identity verification or affordability screening, at least not until after users start betting. This makes them particularly attractive to underage or problem gamblers, but it also raises compliance and legal risks for any crypto project involved in affiliate marketing or tokenized gambling models.
Third, these platforms rely heavily on influencer marketing, often on YouTube, Twitch, and X. Many promote gambling as a fast way to earn, sometimes blurring the line between crypto investing and betting. This kind of messaging may help drive user traffic and token volume, but it’s also likely to draw regulatory backlash.
Don’t Ignore the Risks
For crypto investors, the takeaway is clear: while crypto casinos are becoming a major force in the ecosystem, they also introduce a layer of volatility and regulatory exposure. If you’re holding or trading tokens linked to gambling platforms, or tracking usage metrics tied to this activity, it’s worth asking: what happens if regulators decide to crack down?
The sector’s growth is real, but so are the risks. As always, do your own research and stay alert to developments that could impact sentiment and compliance in this fast-moving space.
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