How Cryptocurrency is benefitting from the online gambling boom

Paul Andrews -

Given the synergy between both cryptocurrencies and online real money poker, is it any wonder that pro bettors and part-time gamblers alike are turning to digital means for their monetary gaming transactions? Today we discover and discuss the growth of this rising trend not just in poker, but in the online gambling industry as a whole.

Current Crypto Popularity

When signing up for an online poker site, after the initial setup you’ll be expected to make a deposit so you can start gambling away. While conventional methods are still accepted by the majority of sites, you’ll more than likely be prompted to make a deposit via a cryptocurrency. This is because these payment methods are all the rage right now within the marketplace.

In 2023 the general estimate is that there is around 420 million cryptocurrency users, globally. Of these users, it’s been reported that Bitcoin leads the way as it is still the most well-known cryptocurrency within the marketplace. Of all, Bitcoin transactions, it’s estimated that 60% (or more) are gambling-related, making around 337 crypto wagers every second. In Bitcoin alone, it’s reported that $4.5 billion has already been spent on casino trade since 2014, while $2.6 billion of that came last year alone.

Between the first quarter of 2021 and the same time in 2022, documents indicate that the total amount of crypto bets more than doubled in number as the market grew by around 120%! While a lot more sites opened and existing vendors started to offer crypto functionality, the trends were dictated by a customer’s desire to use decentralized monies.

The same company, SOFTSWISS reported that in the same timeframe, ‘real world currencies’ endured a dip in market dominance having seen their overall market share drip from 73% of all bets place to 64%. While the nine percentile gained by crypto won’t make everyone overnight millionaires, it’s enough for major gambling sites to sit up and pay attention to offering crypto payment options.

Which cryptocurrencies are being used for Online Gambling?

Good question! Bitcoin is the market leader for most things cryptocurrency owing to its fame and notoriety. After all, it was the format that brought the entire medium of money to the mainstream. It was reported that in 2022, over 70% of all crypto wagers were done so in Bitcoin. However, this market dominance is slipping as it had been higher than 80% in prior years.

Ethereum, Litecoin, and Dogecoin are now widely seen in cryptocurrency casinos as their price is more volatile. Therefore it’s a much more appealing currency for casinos as they look to stockpile a currency and wait for it to blow up. These options tend to have fewer restrictions i.e. lower amounts on what you can pay in and withdraw.

Smaller crypto options can also be available as emerging coins are often incentivized for users to deposit as these can be fruitful for both parties.

Another good question! Essentially, modern technology is more trustworthy and convenient than conventional money methods. Gambling isn’t for everyone. There are multiple spouses of avid bettors who don’t agree with gambling. While you don’t want to keep too many secrets from your husband/wife, crypto offers a haven with its anonymity attributes. Cryptocurrencies leave seldom and traces of transactions and are a lot less likely to be found when compared to bank statements or credit card bills.

Faster payments are also a key reason why crypto is becoming more and more popular. In a world where everything needs to be instantly acquired, the traditional payment processes can be a drawn-out affair. Taking out winnings in the US dollar, British pounds, or other ‘real world currencies’ is usually subject to a wait time which could be in excess of an hour or even longer. Crypto payments are finalized in seconds making it a lot more appealing and efficient to new-age gamblers.

Given that cryptocurrencies aren’t widely regulated by governments (hence the appeal to most users) potential earnings are generally uncapped. However, when governments do cotton on with the technology, this could rapidly change and it would be both wise and prudent to stay on the right side of the law.

What does the future look like?

While there’s no crystal ball to look into, there is a clear forecast as to where the online real money poker market is going. Crypto is only growing in stature and has no significant signs to show otherwise right now. Blockchain technology is only in its infancy too, meaning that new developments could provide future opportunities. Initial reworkings of the tech have only enhanced the speed of the processes, heightened the security protocols, and bolstered the overall user experience.

It's also important to note that not every site is currently at a stage where they accept cryptocurrency as a banking method, so there's the potential for further growth depending on which sites start to expand into the market. Poker has really led the way as you can see from these real money poker websites that accept Bitcoin and other cryptos, while sportsbooks and other online casinos are starting to follow after seeing that success.

While other connected revenue streams like NFTs and online environments like the Metaverse could easily transcend into online gambling to provide more interesting opportunities and growth points for crypto in this marketplace.