Crypto casino revenue skyrockets amid regulatory loopholes

[The Buzz]

New data reveals a staggering surge in the popularity and revenue of crypto casinos, reaching $81.4 billion in gross gaming revenue last year, a fivefold increase since 2022.

According to a Financial Times article, the growth is fueled by gamblers in countries with restrictions bypassing geoblocking through VPNs and other methods to access unregulated offshore platforms, with sites like Stake, Rollbit, and Roobet now rivaling major traditional gambling groups in scale and transaction volume.

Despite claims of compliance and user verification, concerns are mounting regarding the lack of stringent "know-your-customer" processes, spending limits, and the inherent volatility of cryptocurrency, making these platforms particularly appealing and risky for underage and problem gamblers, as well as those in jurisdictions where online betting is illegal.

From the article:

While crypto gambling sites are blocked in jurisdictions from the US and China to the EU and UK, they remain easily accessible via VPN, mirror links or URL redirection, experts, campaigners and former users told the Financial Times.

“Consumers know this,” according to Jordan Lea, a former problem gambler who now campaigns against the industry’s harms. He said “guides as to how you circumnavigate the geoblocking” were freely available online and often offered by influencers who “specifically push” users in, while crypto casino user accounts could be bought on peer-to-peer marketplaces.

Incorporated in jurisdictions where crypto gambling is legal, such as Curaçao, Malta, the Isle of Man and Gibraltar, companies that operate crypto casinos, including Stake, Rollbit and Roobet, now rival the biggest traditional gambling groups in scale.

Stake, operated by Curaçao-incorporated Medium Rare, claims to account for up to 4 per cent of total transactions on the global bitcoin network, with 25mn users placing 300bn bets on the platform since its 2017 launch. Its GGR last year was $4.7bn, up 80 per cent from 2022, according to the company.

That makes it a serious competitor to some of the world’s biggest traditional gambling groups. Entain and Flutter reported total revenues for last year of £5bn and $14bn, respectively, while Bet365’s revenue for the year to March 2024 was £3.7bn. None of the three report GGR.

Read the article here: https://www.ft.com/content/66f879c6-...f-09e3ae22fe6c

[Papanito]

Incorporated in jurisdictions where crypto gambling is legal, such as Curaçao, Malta, the Isle of Man and Gibraltar, companies that operate crypto casinos, including Stake, Rollbit and Roobet, now rival the biggest traditional gambling groups in scale.

[Pokerface]

Very interesting read. I knew that there were large increases but not to this level. Thanks for sharing.