Crypto Payments in Online Gambling: Opportunities, Risks, and Regulation

Cryptocurrency has become a cornerstone of innovation in the global iGaming landscape. While its adoption remains uneven, the use of digital assets in online gambling is expanding rapidly. For many platforms, cryptocurrency is not merely a payment method – it’s a strategic enabler for entering underserved markets, reducing transaction friction, and meeting the preferences of a digitally native player base.

In 2023, cryptocurrency gambling accounted for 30% of total online betting transactions. Though this share dipped slightly to around 20% in 2024, the absolute value of crypto wagers increased by 19%, illustrating continued growth despite the faster expansion of fiat-based gaming.

The evolution has been exponential:

• In 2019, crypto gambling was a $50 million niche.

• By 2022, Bitcoin casino leader Stake.com alone reported $2.6 billion in gross gaming revenue (GGR).

• In Q1 2025, Blockonomi tracked $26 billion in global crypto bets.

• Total cryptocurrency gambling GGR is projected to exceed $150 billion by the end of 2025, with mobile platforms responsible for 65% of activity.

Driving this momentum are stablecoin adoption, mobile integration, and demand from markets underserved by traditional banking systems. Blockchain gambling platforms, Bitcoin casinos, and hybrid crypto casinos now cater to a growing segment of users seeking privacy, speed, and accessibility.

Crypto casinos now support a range of digital assets tailored to different player preferences:

• Bitcoin (BTC): Still dominant in brand recognition, though its share is declining. Stake.com processes an estimated 4% of all BTC transactions globally.

• Stablecoins (USDT, USDC): Used in over 50% of crypto wagers in 2025, offering minimal volatility and low transaction costs.

• Ethereum (ETH): Popular in decentralized casinos and platforms leveraging smart contracts.

• Litecoin (LTC), Dogecoin (DOGE): Attract users with faster transaction speeds and lower fees.

• Operator-issued tokens: Used in loyalty programs or in-game economies; niche but growing.

• NFTs: Employed primarily as collectibles or reward assets rather than betting currency.

Crypto payment processing typically involves users connecting a digital wallet to the platform or transferring funds to a specified address. To streamline these operations, most cryptocurrency gambling platforms partner with processors like NowPayments, B2BinPay, or BVNK, which offer:

• Support for multiple cryptocurrencies

• Instant or near-instant settlement

• Built-in AML compliance

• Real-time fiat conversion tools

Importantly, blockchain’s transparency underpins provably fair gaming, allowing players to verify outcomes via cryptographic proofs. While this isn’t yet a standard among licensed operators, it's central to many blockchain gambling models.

The legality of crypto casinos hinges on two intersecting areas: online gambling regulation and digital asset oversight. A jurisdiction may support one while restricting the other, creating a fragmented compliance landscape for operators.

• Curaçao and Anjouan (Comoros): Host hundreds of licensed crypto casinos with updated frameworks supporting fast-track market access and minimal restrictions.

• Malta: Via its sandbox program, the Malta Gaming Authority permits regulated cryptocurrency gambling under enhanced AML controls.

• Isle of Man & Gibraltar: Offer robust licensing pathways for blockchain gambling, balancing innovation with strong regulatory oversight.

• Costa Rica: While it lacks formal online gambling regulation, the country allows e-gaming companies to operate as crypto casinos under basic commercial law.

• European Union: Operators must comply with broad AML laws; crypto is not uniformly regulated for gambling purposes.

• United Kingdom: Technically permitted under gambling licenses, but most operators avoid crypto due to the stringent source-of-funds verification burden.

• United States: No unified federal law. While some states (e.g., Wyoming) technically allow crypto, real adoption is limited, and financial regulators remain cautious.

• Asia & Latin America: Highly fragmented. Some regions tolerate crypto use through offshore operators; others enforce restrictions or offer no clear guidance.

Countries where both crypto assets and gambling are banned — due to religious, political, or financial controls — effectively outlaw crypto gambling entirely. Operators serving users in these regions risk enforcement, even if licensed offshore.

Operators must navigate dual legal frameworks, treating gambling licenses and financial licenses as separate obligations. A country might allow crypto payments for general commerce but prohibit their use in gambling applications, or vice versa.

Crypto gamblers differ significantly from traditional players in behavior, motivation, and value.

• Speed: Fast withdrawals and deposits remain the top driver. Crypto enables near-instant cash-outs, often within 5–15 minutes.

• Privacy: VPN usage, reduced KYC barriers, and decentralized wallet systems support anonymous or pseudonymous play.

• Transparency: Provably fair mechanics powered by smart contracts build trust, particularly among tech-savvy users.

• Control: Players retain direct custody of funds, avoiding third-party processors or banking delays.

• Higher bet sizes: The average crypto wager (~$2) is more than double that of fiat (~$1), according to SOFTSWISS data.

• Whale-driven ecosystems: Ethereum-based dApp usage reveals that a small number of users generate the majority of betting activity.

• Global reach: Fewer banking restrictions lead to higher cross-border activity, greater session length, and increased LTV.

• Repeat usage: Over 70% of crypto players are repeat users, outperforming fiat player retention rates.

• Demographics: Crypto bettors skew young (18–34), male, and digitally literate, often involved in trading or other online financial ecosystems.

• Geographic pull: Crypto casinos see outsized engagement in regions with weak banking infrastructure, including parts of Latin America, Africa, and Southeast Asia.

For operators, cryptocurrency gambling provides an array of performance, efficiency, and growth advantages. Crypto users bet more, churn less, and respond better to fast payout mechanics.

The ability to serve crypto-native audiences allows operators to access a younger, tech-oriented demographic that prefers decentralized systems. These players engage more frequently and have higher ARPU and LTV than fiat users. In regions with weak financial systems, crypto bypasses local banking friction entirely, enabling seamless market entry.

Faster transaction speeds also directly improve retention. Platforms like Cloudbet and Stake report crypto withdrawals in under 10 minutes, compared to 1–5 business days for traditional bank methods. Operators also save significantly on payment processing costs, with several reporting savings of 60–70% after adopting crypto-focused infrastructure.

Success stories illustrate the value. Bitcasino.io reduced support requests by 60% after shifting to crypto-first operations. FortuneJack saw players stay active 60% longer. Stake reported that 80% of its betting volume comes from crypto users who place 30–40% more bets than fiat users.

While the upside is clear, crypto gambling presents significant risks operators must manage with diligence.

• Volatility: Price swings affect deposit behavior and platform GGR. Rising prices often reduce betting frequency; falling prices may prompt reckless play.

• Overlap with risky trading: Academic research confirms high crossover between crypto gamblers and speculative traders, increasing volatility and RG (responsible gambling) risks.

• Revenue cyclicality: Operator cash flows may fluctuate with token performance, complicating forecasts and loyalty modeling.

• Benefits: USDT and USDC reduce volatility and now power ~60% of cryptocurrency gambling wagers.

• Risks: De-pegging, sanction exposure, and AML scrutiny can create systemic compliance challenges.

• Total bans: Brazil explicitly prohibits licensed operators from accepting crypto.

• Conditional use: The UK and EU allow it with strict conditions, but most licensed operators avoid crypto due to compliance costs.

• Crypto havens vs global scrutiny: Offshore hubs like Curaçao and Costa Rica remain active, but bodies like FATF and MONEYVAL are pressuring jurisdictions to limit “light-touch” regimes.

• Fraud & platform collapse: Projects like MegaMoon and PoolTogether collapsed, undermining user trust.

• Lack of data transparency: Crypto KPIs remain underreported, with most analytics based on blockchain proxies or estimates.

• Enforcement activity rising: Authorities in Turkey, Belarus, and Japan have begun regulating or restricting crypto-based gambling activity more aggressively.

By 2026, cryptocurrency gambling has matured from an experimental niche into a high-growth vertical attracting both users and regulators. Its promise is undeniable: instant payments, cross-border access, player privacy, and new engagement mechanics like provably fair systems. Bitcoin casinos, stablecoin-powered sportsbooks, and blockchain gambling apps are all driving measurable success – from higher ARPU to deeper retention.

But opportunity comes with complexity. Operators must contend with fragmented online gambling regulation, rising compliance costs, and risks tied to market volatility and fraud. Meanwhile, gambling licenses in many jurisdictions still exclude or restrict crypto use entirely.

The future of crypto casinos will not be shaped by hype, but by execution. Success will belong to those who treat crypto as infrastructure – investing in licensed processors, AML tools, real-time monitoring, and compliance-first strategies.

In this evolving landscape, crypto gambling is no longer a fringe experiment. It is a defining force in the future of iGaming – and the operators who build for scale, structure, and trust will define its next chapter.