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The online gambling industry has seen rapid growth and considerable changes since the launch of InterCasino in 1996. Games have become mobile and some are hosted by live dealers. Jackpots have also become noticeably larger as more people take to online gambling. But, one of the most disruptive changes to the industry has come in recent years, with the advent and growth of cryptocurrency gambling.
Crypto gambling sees players deposit and withdraw Bitcoin, Ethereum, Tether, and other popular cryptocurrencies. Some casinos have even launched their own cryptocurrencies (source: https://www.cardplayer.com/online-casinos/best-bitcoin-casinos).
Crypto casinos can offer faster and cheaper transactions, and they attract some of the biggest jackpots and best bonuses of all online casinos according to poker expert Liliana Costache.
The Rise Of Crypto Gambling
Crypto casinos are still relatively new. SatoshiDice launched in 2012 and was a simple game that allowed players to send their bets directly to the blockchain. Although it was simple, SatoshiDice’s popularity and success led to the development of more advanced crypto casinos.
Today, the crypto gambling market is worth an estimated $250 million a year which represents significant growth but is only a small share of the nearly $100 billion global iGaming market. There is a lot of room for growth, but growth will depend on several factors.
The gambling market as a whole is expected to rise from $100 billion to $127 billion in revenue by 2027. And, crypto gambling is expected to take a good share of the market as technology continues to improve and more people turn to cryptocurrency either as an investment or a method of payment and remittance.
Regulation
Cryptocurrency and gambling are both highly regulated in some jurisdictions. In other areas, they are completely unregulated. In the U.S., for example, several states have recently regulated online casinos.
Rhode Island is one of the most recent states to license online casinos in its borders. But Rhode Island is one of only seven states where this type of online gambling is fully licensed.
Various other states, including New York, are considering regulation but the process is slow going and public votes are typically required before changes to state constitutions can be made.
The situation is similar in other parts of the world, too. In the EU, France and Cyprus prohibit online casinos, but the rest of the member states have regulated iGaming industries.
Laws and regulations are prone to change, which means we could see greater legalization in the future. Although many crypto casinos enable players to register and deposit funds anonymously, further regulation will open the doors to a larger market and potentially increase the size of the crypto gambling market further.
Technological Advancements
While industry regulation and gambling laws can move slowly, technology tends to be fast-paced. Crypto gambling’s auspicious start came in 2012 and in the 12 years since, it has grown considerably. Cryptocurrency itself, which is described as a disruptive technology, has also enjoyed massive advancement in its 15-year history.
Cryptocurrency is much easier to trade, hold, and use than it was during the technology’s infancy. Some of the best wallets enable the sending of deposits in just a few clicks of a screen or mouse.
The launch of new, smarter wallets is likely, and this will open up cryptocurrency to more people. As more people adopt crypto, this will naturally lead to more crypto gambling players, too.
Cryptocurrency Adoption
Cryptocurrency adoption continues to increase. According to studies, more people are aware of cryptocurrency than even a year ago, and 10% more people in the US alone now hold at least one crypto.
At the same time, the number of people who are completely resistant to cryptocurrency has dropped, although 44% of respondents who do not yet own crypto still said they would never purchase a digital currency. This is down from 49%, however, showing that barriers to entry are eroding.
The introduction of spot ETFs has already helped improve Bitcoin’s credence, and Ethereum ETFs have followed suit. It is widely expected that similar financial products will be launched for other cryptos including Solana and Ripple.
Smart Contracts
Smart contracts are decentralized contracts established by two or more parties. The contracts are completed when certain actions are met.
For example, in the case of crypto gambling, the casino and the player enter into a contract that states that when the player deposits $100 of Bitcoin to a given wallet address, their casino account will be credited with $100. Smart contracts can be automated so that when the funds hit the casino’s crypto wallet, the player’s account is automatically credited with the funds.
Smart contracts are getting smarter, easier to establish, and more widely used. This will help further improve deposit and withdrawal times, while casinos will be able to implement automated contracts in other ways, further increasing the appeal of crypto casinos to players.
Gambling Coins
Different crypto casinos accept different cryptocurrencies, although most accept Bitcoin, Ether, Litecoin, and Tether. A growing number also accept Dogecoin, and some have even established their own coins.
As it becomes easier to create coins, and as regulations potentially open up, it is likely that more and more crypto casinos will follow suit by launching their own cryptocurrencies.
Some online casinos may group together to promote and use a handful of coins, potentially offering extra bonuses and other benefits for users of those coins.
Conclusion
Cryptocurrency continues to gain prominence, along with iGaming. As technology continues to improve, as people become more comfortable using cryptocurrency, and as cryptocurrency becomes more viable as a daily currency, crypto casinos will continue to see an increase in their popularity.
This will likely lead to more crypto casinos entering the market and with increased competition will come even more competitive offers, discounts, and jackpots.
However, online regulatory challenges could temper crypto gambling’s progress, at least in some jurisdictions and countries, as groups determine the best way to progress with both cryptocurrency and online gambling.
