The world of online gambling has taken a sharp turn towards cryptocurrencies. In 2024, crypto gambling generated an astonishing $81.4 billion in gross gaming revenue, marking a fivefold increase since 2022. This explosive growth comes despite legal uncertainties in many countries.
The Meteoric Rise of Crypto Gambling
New data released by YieldSec, as reported by the Financial Times, underscores the booming industry of crypto gambling. While traditional online gambling already posed regulatory challenges, its crypto-powered counterpart has added a new layer of complexity.
Unlike fiat casinos, crypto platforms operate with digital assets such as Bitcoin, Ethereum, and stablecoins. These platforms have witnessed skyrocketing popularity, especially among users seeking anonymity, borderless access, and lower fees.
Stake Leads the Pack
Among the leaders in the space, Stake.com has emerged as a dominant player. Since its 2017 launch, Stake has attracted over 25 million users who collectively placed more than 300 billion bets. The platform also claims to be responsible for up to 4% of all Bitcoin transactions—a staggering figure that highlights its market presence.
Stake, along with other popular crypto casinos like Roobet and Rollbit, operates in jurisdictions such as Curaçao and Malta, where crypto gambling is legally permitted. However, this hasn’t stopped users in more restrictive countries from accessing these platforms.
Bypassing the Law With VPNs
Although crypto casinos remain illegal or unregulated in many regions, including the United Kingdom and the United States, they are still accessible. Users often employ Virtual Private Networks (VPNs) to circumvent geolocation restrictions.
A Financial Times investigation revealed that it was possible to sign up on Stake from London using a VPN. The process did not require immediate proof of address or income, raising concerns about user affordability checks and responsible gaming.
Regulators Sound the Alarm
Since April 2024, the UK Gambling Commission has issued more than 280 cease-and-desist notices to online operators promoting or accepting crypto deposits. These warnings aim to curb the rising trend of unauthorized gambling activities that bypass local regulations.
Yet, enforcement remains difficult. Crypto gambling websites typically avoid traditional payment processors and operate in decentralized ways, making them harder to monitor or shut down.
The Dark Side of Crypto Gambling
While the revenue numbers paint a picture of prosperity, the industry is not without controversy. Legal loopholes and lack of oversight have opened the door to fraud and misuse.
One such case involves Richard Kim, a former executive at Goldman Sachs and JPMorgan. In March 2024, he launched ZeroEdge, a blockchain-based casino promising fully on-chain gaming experiences. Although the project raised $4.3 million through token sales and venture capital, Kim is now facing wire and securities fraud charges.
Prosecutors allege that Kim diverted investor funds for personal use, and the case is still under federal investigation. This incident has heightened scrutiny over crypto casino startups and exposed the risks of investing in unregulated platforms.
Why Are Crypto Casinos So Popular?
Despite the risks and regulatory uncertainties, users continue flocking to crypto gambling platforms. Several key advantages make them appealing:
- Anonymity: Most platforms require minimal user verification.
- Borderless Access: With VPNs, users can access gambling services from almost anywhere.
- Faster Transactions: Crypto payments are quicker and cheaper than bank or credit card options.
- Provably Fair Gaming: Many platforms offer transparency through blockchain-based algorithms, allowing users to verify game outcomes.
Additionally, the growing adoption of cryptocurrencies in general has contributed to the normalization of their use in various online ecosystems, including gambling.
The Legal Gray Zone
The legal status of crypto gambling varies widely across the globe. While countries like Malta and Curaçao offer licensing frameworks, many others ban or heavily restrict online betting activities—especially when funded by crypto.
In the U.S., federal laws prohibit most forms of online gambling, and the introduction of crypto adds another layer of complexity. Meanwhile, countries in Asia, the Middle East, and parts of Europe are wrestling with how to regulate or prohibit these emerging platforms.
Notably, some regulators are starting to draft new legislation that specifically targets crypto gambling. These initiatives aim to close existing loopholes and impose stricter compliance standards. However, the borderless nature of crypto and blockchain technology makes enforcement a formidable task.
What’s Next for the Industry?
As crypto gambling continues to grow, industry watchers anticipate more regulatory crackdowns. At the same time, legitimate operators are likely to push for better compliance and clearer rules.
Platforms like Stake argue that they operate fully within the bounds of local laws and hold valid licenses. Nonetheless, the ease of access via VPNs complicates jurisdictional boundaries and raises important questions about consumer protection.
Some experts also believe that the sector could eventually shift toward decentralized autonomous organizations (DAOs). These entities could allow users to gamble without intermediaries, further blurring the lines between legal and illegal operations.
Final Thoughts
The $81.4 billion generated by crypto gambling in 2024 underscores the sector’s massive potential. Yet, this explosive growth is matched by equally significant challenges.
While platforms enjoy rising popularity and user engagement, regulators remain concerned about illegal access, money laundering, and responsible gaming. As countries grapple with how to respond, the future of crypto casinos hangs in the balance—poised between innovation and controversy.
One thing is clear: as long as demand persists and technological loopholes remain, crypto gambling will continue to thrive—regardless of whether governments are ready for it.
Also Read; Bitcoin Price at a Crossroads: Is a Crypto Winter Looming or a Rebound Near?
