Crypto casino revenue will reach $81.4 billion in 2024, which is five times higher than in 2022. Such data was provided by the analytical platform Yield Sec.
The operation of such services is banned in regions such as the US, China, the EU and the UK. However, players are massively bypassing the blocking using VPNs, mirrors or redirecting links, writes the Financial Times. Accounts are also sold on P2P markets.
The rapid growth of crypto casinos is explained by the lack of strict regulation, the publication noted. Platforms like Stake, Rollbit and Roobet are comparable in scale to the largest traditional bookmakers.
Curacao-based Stake says its platform processes up to 4% of all Bitcoin transactions and reported $4.7 billion in revenue last year, up 80% from its 2022 target.
The company claims that its operations are fully compliant with regulatory requirements and that user data is verified using KYC procedures.
However, Financial Times journalists were able to register an account on the platform from the UK using a VPN, without verifying their address or financial information.
Experts believe that crypto casinos are popular due to the lack of strict betting limits, identity checks, and other restrictions. They often attract minors and people with gambling addiction, as well as users from countries with strict bans on gambling.
The platforms are actively investing in marketing, collaborating with influencers and sports brands. For example, Stake sponsors Everton Football Club, Roobet partners with Chelsea, and Rollbit with Leicester City.
Legal uncertainty and the lack of international controls allow operators to continue to operate in the shadows. British and American laws prohibit local residents from using the services of such platforms, but there are no direct measures against players.
Experts and activists have called for tighter regulation, including a ban on the use of white label licenses that allow crypto casinos to enter markets with minimal scrutiny.
According to Yield Sec, there are tens of thousands of platforms serving tens of millions of users. The average deposit size on them is 10 times larger than that of regulated platforms.
Recall that in July 2024, the former head of Galaxy Interactive, the venture capital arm of Mike Novogratz's company of the same name, lost investors' money ($3.67 million out of a total of $7 million) raised to launch the Zero Edge crypto casino.#CryptoAdoption