As it is to be expected, the online casino and gambling sites belong to an industry that heavily relies on new technological advancements and the latest trends to meet the demands of the constantly changing market of online gambling. So it’s not surprising that the adoption of cryptocurrencies as a new method of testing your luck was immediately adopted once those started to be noticed.
As we read further, Cryptogamble.tips will show you how the gambling industry first came in contact with cryptocurrencies as well as, the threats and issues of the industry.
The involvement of this industry in the crypto world is easily understood as soon as one is aware of how cryptocurrency activities work. Relying on blockchain technology, this new type of currency works along with a platform that allows for absolute anonymity and security when it comes to financial dealings.
Cryptocurrencies’ rapid ascent into online gambling is very likely due to this fact that, considering these are perceived as a quicker, safer, and securer way of dealing with online transactions.
The gambling industry first came in contact with cryptocurrencies all the way back in 2011 at switchpoker.com and satoshidice.com (which later was sold for 126,315 BTC), relatively unknown platforms at the time.
Moving 10 years down the road, crypto gambling sites now reaches hundreds, if not thousands, of gaming platforms.
The reasons these digital currencies are very much sought after by the online casino universe include, but are not limited to, the improvement in security and safety, this comes in handy at a time where online hacking has become a major problem for those that want to leave their financial footprint in the digital atmosphere. By dealing in crypto, online transactions can rely on the security of blockchain technology, one of the safest ways to conduct any sort of financial activity.
Blockchain technology means that transactions are impossible to manipulate and on top of that, you can bet and make deposits anonymously.
It has also improved credibility, because aside from the benefits that the gamblers and the casino operators take from using blockchain technology, it also offers them other technologies that allow for an improved user experience and some that were previously provided by third-party actors, such as security software to rule over the infinite amount of transactions happening daily. Blockchain alone provides all of that.
This independence from third-party companies brings a reduction of expenses to the gambling website operators while at the same time cutting the fees of transactions to the gamblers themselves because the only thing you’re paying is for the computer power required for the mining of cryptocurrencies.
Top cryptocurrencies used in online casinos
Any and every discussion about gambling with cryptocurrency must start with Bitcoin. This coin is not only the largest crypto platform in the world within the optic of market capitalization and coin value, as it is also the original cryptocurrency that started the frenzy around intangible currency.
Being the most renowned crypto on the planet, any casino that accepts transactions in cryptocurrency will accept Bitcoins. Bitcoin is so prevalent in the online gambling sphere that most casinos will convert other crypto payments into Bitcoins. This just goes to show how much trust online casino providers place upon Bitcoin and its Blockchain technology.
Bitcoin Cash (BCH) follows Bitcoin in the lead of market share when it comes to online casinos. This coin is an altered version of Bitcoin. What this means is that its creator had a little fun with Bitcoin’s code and sent it in another direction, creating what is known as a fork of Bitcoin.
It came to existence in July 2017, after several decision-makers within the Bitcoin community got into a disagreement about the lengthy amount of time blockchain transactions were taking, caused by a disagreement between several decision-makers within the Bitcoin community. The fallout started when Bitcoin transactions processing was taking too long to complete, originated by the fact that the Bitcoin blockchain is so large.
Sometimes good things happen off of bad situations, and Bitcoin Cash is the perfect example of that.
It is a spawn of a fight that has now reached the status of one of the preferred cryptocurrencies in the online gambling world.
Ethereum is also one of the top candidates for the title of crypto gambling favorite. In short, Ethereum is a development platform where all sorts of blockchain-based applications are built, and it just so happens that the platform also supports cryptocurrency. The coin that is associated with Ethereum is named Ether.
Some honorable mentions are Litecoin (LTC), one of the top 10 cryptocurrencies by market capitalization frequently seen as the one that’s best positioned to compete with Bitcoin and Monero (XMR), a relative newcomer to the cryptocurrency space. It was released in April 2014 as an open-source cryptocurrency platform with a heavy emphasis on decentralization, privacy, and fungibility. What really sets this coin apart is its security.
Monero is designed and built around a proof-of-work mechanism designed to increase security with every newly mined coin. This strength does come with its cons though, given how secure and hard to track Monero is, brings bad actors to the table and so the coin is known for its use in illicit dealings and dark web transactions that involve illegal substances.
Hereunder is a representation of the number of crypto casinos that adopted each coin as their currency (data based on our current database of crypto casino reviews).
Crypto Gambling’s Rise
Two things have grown beyond expectations in 2021, cryptocurrencies and online gambling, and so naturally, the rise in the numbers of online casinos adopting the currency has been achieving new heights.
According to SoftSwiss, the crypto-first game aggregator that thrusts brands such as Bitstarz, mBit Casino, BetFury, and 7BitCasino, their quarterly report shows that crypto gambling’s traffic tripled in 2020 when compared to the previous year.
This means that crypto gambling has taken over a large share of the gambling industry, or at least, the online one. Recent data shows that 4% of all online gambling is dominated by cryptocurrencies, which, for something as recent as the previous, is quite an achievement on its own.
One of the explanations for this occurring is the fact that Bitcoin, the most used coin in online gambling, has seen its value soar during 2020, and with it, the likelihood of profiting within it.
Both eSports and cryptocurrency online gambling are expected to maintain, at least, steady growth in the upcoming years, with eSports viewership expected to hit 646 million by 2023, if not sooner. To an industry that’s already showing a huge momentum in popularity, this only means it will continue its ascent into the top sports charts.
Since casinos are invested in figuring out their market so that they can come up with strategies that will increase their profits, they’ve been undertaking studies that show that most of the fiat currency players that are converting to crypto are not going back, what affects this may cause to the industry are still an uncertainty, with of them being that crypto online gambling will get an even bigger slice of the industry pie, with more and more casinos seeing the potential of adopting it.
One thing is certain, eSports trends, according to Google Trends, have shown a rise in popularity somewhat stable throughout the years, but crypto gambling fluctuates by Bitcoin’s value.
Most importantly though, is that the online casino market has grown more than any other branch of the industry and so far there are no signs it will stop slowing down.
Showing how crypto gambling is conquering the industry
According to our statistics coming from our platform, the number of users we’ve reached was 952.52% higher in the first semester of 2021 than in the last semester of 2020. This is a huge increase for such a small period of time, baffling even the most optimistic projections.
The U.S. market has seen a rise of 536.96% in crypto gambling users, 615.09% for the U.K., 490% in India, 748.98% in Canada, and a staggering 1021.43% in Germany, making it the leader of the list, well, at least percentage-wise.
Future online gambling industry climate
Let’s try to convert the future of the online gambling industry to numbers.
According to the “Global Online Gambling Market (2020-2025) by Games, Device, Geography, Competitive Analysis and the Impact of Covid-19 with Ansoff Analysis” report, the online gambling market is estimated to reach USD 97.69Bn by 2025, growing at a Compound Annual Growth Rate (CAGR) of 11.31%.
The fact of the matter is that the internet is becoming more and more accessible to everyone, no matter where on our blue planet they might be, and with more internet users, the chance of some of them getting involved in online gambling is always present.
This has resulted in the rise of online casinos, and with the rise of online casinos comes the competition side of the industry, where companies that supply such games will be competing for the biggest share of the market, always trying to improve user experience, new game formats more and better prizes, that will in turn appeal to more users finding their way into the gambling world.
Not everything is fun and games, factors such as the rise in cybercrime and transaction fees associated with these platforms are likely to perturb the market growth. This, accompanied by the legal issues involving the industry, such as regulatory bodies that oversee the market and the lack of personal interaction are some key challenges that are seen affect the industry.
How cryptocurrency’s price affects crypto gambling’s affluence
To understand how the crypto market’s price influences the search for crypto gambling, Google Trends comes into play.
The graphics below compare the evolution of some cryptocurrency’s prices in the last 5 years with how much the terms “bitcoin casino” and “crypto gambling” have been searched for in the same period of time.
As one can clearly see, the correlation between crypto market prices and the adherence to the online crypto gambling industry is extremely evident.
Even though this might be meaningless, current trends show that as long as the crypto market rises into the mainstream continues, the online gambling world will notice the effects of this ascension first-hand.
When crypto’s value rises, so does the probability of profiting off of it, so, naturally, online gamblers that never used cryptocurrencies as credits are more likely to step into that branch of the industry, and as we previously mentioned, never return to fiat currency gambling.
Only the future truly knows what it reserves for the crypto gambling industry, but with some analysts believing that the price of bitcoin can eventually reach the $100K mark shortly, one can only predict those good things come to the crypto online gambling atmosphere.
On the other hand, let’s not forget that fluctuation in the crypto market’s value isn’t always a good thing. A fluctuating currency is perceived as one that lacks stability and overflows with volatility. When a product is volatile, trust in it might decrease, and its value might decrease, which can ultimately lead to the end of its demand. So far, this volatility hasn’t affected the online gambling industry in any negative way, but the possibility that it might is always there.
Biggest brands entering the market
From the company that brought us Pac-Man, Asteroids, Space Invaders and Donkey Kong comes one of the biggest news in the crypto world.
Atari, one of the pioneering companies that gave millions of kids millions of hours of entertainment announced its entrance into the cryptocurrency market.
The gaming giant launched its proprietary ATARI cryptocurrency, which can be used to play at dedicated online casinos and has a market capitalization of about $8m.
Another notable entrance into the crypto arena is that of Sportsbet.io, operated by Yolo Group (ex Coingaming Group) and a brand that recently officialized a partner deal with Arsenal and also sponsored Watford and Southampton from the Premier League.
Other crypto casino brands, such as stake.com, are now following the lead and landed a sponsorship deal to have their brand on display during the TT Cup table tennis tournament in early 2020, UFC in 2021, and more to be announced.
Popular games in crypto gambling
Cryptocurrency gambling has games for days, literally, I could sit here for days listing all the games out there, so I’m going to have to narrow down the list, giving you a bit more insight into the ones I’ll be mentioning.
Crazy Time Live
Crazy Time Live is a new online casino game by Evolution Gaming that combines Monopoly Live and Dream Catcher‘s best features to swoop players’ minds right off of the floor. The game comes in the form of a money wheel with multiple prizes, including four different bonus games that will certainly excite any player that chooses to play the game. Crazy Time’s greatest feature is the fact that players have the chance to multiply their initial bet value by as many times as lady luck allows them to in a single spin, with the maximum top prize being 160000x the initial bet value. With an amazing design, hilariously funny and easy-going hosts, huge pay-outs, and colors that will have you thinking you’re in Alice in Wonderland, playing Crazy Time and not returning to it are next to impossible!
Next on the list is Crash, this game is one of the most popular casino games for its immersive layout and pretty straightforward rules.
To play this game a player simply needs to place a bet and wait for a multiplier to reach an expected point before cashing out their profits. The higher the multiplier, the higher the risk and if one reaches success the harvest can be vast.
Visualize an ever-extending curve that can crash at any time, if it crashes after the player’s bet point then they’ll win the bet, if it busts out earlier… well… then they surely won’t be very happy.
Crypto Dice game is perhaps one of the purest forms of crypto casino games available, a game that is easy to learn but difficult to master, and that appeals to players.
Crypto dice games are very similar to traditional dice games, where a player primarily focuses on the selections of bets according to the stakes of said bet.
The popularity of the Dice game also comes from the fact that it works under the provably fair system, that ensures that the game isn’t rigged in favor of the platform, not forgetting the ever-present house-edge, giving the player the chance to analyze the results of the rounds to confirm their validity.
How to play this game is pretty simple:
- The player selects the number they predict the roll will land above or below.
- They place the bet amount
- Press the roll button
- Either get lucky or “Better luck next time!”
Hereunder is a graph that shows the up ticking trend of the Crash game:
Global trends seem to suggest that mobile betting has been on the rise in recent years, with the development of more affordable yet better mobile devise, access to online gambling from any device is literally just a finger’s reach from happening.
With most of the mobile crypto gambling happening under the Bitcoin blockchain, this means the market for mobile gambling will see updrafts and downdrafts as the value of Bitcoin fluctuates, which it constantly does.
The price does fluctuate, but Bitcoin, has since the beginning, been at the forefront of the crypto-verse and nothing suggests it won’t remain there for a lot longer, on the other hand, the second semester of 2021 is showing to be promising towards the Bitcoin value which may lead to mobile being one of them, if not the biggest mean people use to test their luck. The opposite is also true, if mobile betting increases too much, the price of Bitcoin may fluctuate “because” of it being used there, so basically this is a double-edged sword either covered with honey or poison that one cannot predict with absolute certainty.
The graph below portrays the growth potential of gambling products, as you can see, mobile gambling is pretty much dominating the race.
Potential growth of crypto gambling in regional markets
Crypto gambling is here to stay and everyone aware of this industry is aware of it.
According to SOFTSWISS’s Q1 report, crypto turnover increased to 26% at the end of March 2021, and more recently it grew to 31%, running over the earlier number in just two months.
The number of transactions processed via SOFTSWISS’s services has been increasing steadily since 2019, but in 2020 they’ve seen a five-fold growth in transaction volume since the pandemic started.
This means that the crypto processing market is getting more and more competitive, increasing trust in the currencies that exist there.
Bitcoin has the biggest share of the pie, with 78.5% of all transactions in the iGaming market being done with bitcoin, followed by Ethereum which holds 9% of that pie but it is growing steadily as well.
All of this combined with the fact that crypto gambling has been growing all over the world, especially in the Americas and Asia, means that the potential growth of this industry will only get bigger and more present everywhere.
With the number of users and the number of coins at use getting higher, more markets, more countries, and even whole regions will definitely see the profitability of the business and start migrating towards it.
The graphic hereunder shows the trend of estimated growth for different regional markets
Crypto around the world, regulations, and legality
The United States
Despite it being legal in the US, there is no comprehensive regulation that governs crypto activities. The regulation there depends on the authority that is regulating it, for example, the Financial Crimes Enforcement Network (FinCEN) defines cryptocurrency as a money transmitter. However, The Internal Revenue Service (IRS) establishes it as property, digital property. When it comes to cryptocurrency exchanges fall under the wing of the Bank Secrecy Act (BSA). Furthermore, the US Securities and Exchange Commission (SEC) identifies cryptocurrencies to be securities, meaning they are subjected to security laws.
The European Union
The EU has been at the forefront of the cryptocurrency movement given that it was one of the first economic areas that legalized its use. Despite the legal status of the currency, there is no regulation whatsoever that governs crypto activities. The only form of regulation, even though it isn’t seen as one, is the 5th AML Directive, which directs that crypto exchanges abide by the EU’s anti-money laundering regulations.
Known for its appetite for new technology adoption and development, Singapore is no stranger to cryptos, showing a desire for a new form of currency. This is noticeable because, in recent times, Blockchain and Cryptocurrency Regulation 2020 was signed to regulate cryptocurrency and accelerate its involvement in the country.
Identical to the other countries, cryptocurrency activities are pretty much legal, and the Australian government has indeed subjected cryptocurrency to section 5 of the Anti-money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006), and the rules that arise from it.
Cryptocurrency here is also defined as property and so is subjected to Capital Gains Tax (CGT). Some regulations were imposed on the currency though, such as it being registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which means that crypto exchanges need to comply with the parameters set by the AML/CTF 2006 Part 6A – Digital Currency Exchange Register.
Japan legalized cryptocurrency in 2017, under the Payment Services Act, and the Financial Services Agency is responsible for governing all the cryptocurrency platforms trading in Japan.
In Canada crypto transactions are legal and are considered a commodity, which means they’re classified as business income.
Businesses dealing with cryptocurrencies are instructed to register themselves with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
South Korea is a peculiar case where crypto exchanges are considered legal, but cryptocurrencies are not. Cryptocurrency transactions are expected from taxes, however, the Ministry of Strategy and Finance is working on a plan that will impose a tax on crypto transactions through a revised tax framework soon to be launched.
Mexico is the only country in Latin America that has effectively levied cryptocurrency regulations. The Mexican government published in the Mexican Official Federal Gazette a new law whose purpose is to regulate cryptocurrencies within the financial system of the country.
Cryptocurrencies in Germany are under The German Federal Financial Supervisory Authority (BaFin), which can be used for payment purposes. This means that any crypto transactions occurring in the country are obliged to seek approval from this authority.
Last but not least, Malta. This small country is considered to be a leader in crypto regulation. Cryptocurrencies are not legal, but their exchanges are. Malta was the first to enact a trio of digital assets-related acts, MDIA, ITAS, and VFA, alongside blockchain legislation.
The cryptocurrency legislation is a new regulatory framework launched by the government in 2018 that is considered to be a legal landmark for the country. Furthermore, the Malta Digital Innovation Authority was set up to ensure that crypto policy is up to date and that there is an ethical use of the currency inside Malta’s territory.
Threats and issues
Bitcoin gambling, Ethereum gambling, Litecoin Gambling, and Dogecoin gambling are fairly recent, so the decently new format still has a few issues, mostly, the volatility of the assets used, assets being the coins, the lack of diverse alternatives in choosing platforms to patronize, even though this can all change in the upcoming years and the knowledge crypto is required to avoid hiccups.
Having all of this in mind, the pros still out scale the cons and that is shown by the increasing popularity of the format.
Protect your bitcoin casino winnings
The market of cryptocurrencies is very much a volatile one, it has been ever since the beginning so the best way to protect your bitcoin winnings is to try to keep up with the ins and outs of managing your wallet to avoid getting hurt from any drastic changes in the market.
Many people wonder if it is even possible to control your wallet and avoid being hurt by market fluctuations, and although you will never be able to keep all-hazard away, educating yourself on how to lessen the severity of such changes will definitely come in handy.
Firstly, you need to be keen on doing your own research and educate yourself about the market you’re currently sitting at, especially if you’re a newcomer here. Getting an idea of how the market works and getting to grips with it will help you in the long term.
Reading online articles, watching video demonstrations, or even talking to friends and family that may have some insights to give you is always a good idea and you should use every single tool around you to learn more before starting the invest your money in crypto.
Secondly, you must learn how to manage your money.
What does this mean? Well, keeping track of your wallet movements, such as transactions, losses, and profits, will keep you aware of your current situation and will ease your way when the time comes to make any financial decisions.
Some tracking apps will help you with this, but learning for yourself will give you a bit more experience when it comes to dealing with actual real-world problems that might arise
Keep an eye out for market trends.
This tip is entangled with the previous one, keeping up with your funds means you’ll need to learn how the market behaves in certain situations because this will allow you to understand how the value fluctuates and why.
Identifying trends and patterns that change the course of the market might help you make better future investment decisions and with time this will become a natural way of approaching your funds.
Having all of this in mind it is good to remember that the market will, sometimes, hit you with a backhand that will swoop you off your feet and damage your wallet. This is inevitable and it happens to even the best crypto traders so don’t be put off by it.
When it comes to online casinos and crypto gambling, one good approach to avoid harm from crypto fluctuation is to play in casinos that accept both cryptocurrencies and fiat money, this way there’s always the chance that you can convert your crypto into fiat currency and avoid losses by transforming your funds into a much less volatile currency. Many casinos offer this option, it’s just a case of finding which one you think will suit you better entertainment and financial security-wise.