Is Crypto Gambling The Future of Online Gambling?
With the rise of the online gambling industry, new online casinos and betting sites are launched all the time. It’s a growing market in many countries and the products being developed are increasingly impressive. Modern technology has made online gambling more accessible for everyone, since you can now play your favorite casino games via mobile devices anytime, anywhere.
However, the crypto gambling industry has evolved so rapidly that it now poses the question – is crypto gambling the future of online gambling? Yes, crypto gambling is the future of online gambling based on all the modern gambling trends, but can we truly predict something like this and what would that mean for traditional online casinos? If you are worried about having to switch to crypto and what the new era of the iGaming world looks like, hop on our train as we fly by all the important pieces of the puzzle to give you a complete picture of what the future of online gambling will be.
What Are Crypto Casinos & How Do They Work?
Crypto casinos are much like regular online casinos, but they come with one major difference – crypto payments. Most of these sites come with various crypto coins available for making deposits and payouts from the site.
While the main difference is seemingly in the payment method, crypto casinos have many benefits. They make a perfect place for crypto holders to wager their coins and don’t have to bother with complex transactions and switch from fiat currencies to crypto and the other way around.
These casinos work based on blockchain technology, meaning that all transactions are safe and secured in a public ledger. Even though major online casinos have SSL encryption and other methods of protecting players’ data, crypto casinos are much more efficient.
Every transaction can easily be tracked, and there’s no way of copying it since it has its address and code, making it easy to spot the attempt to copy this code. So, the safety of players’ personal information and banking details is the number one reason behind crypto casino popularity.
Is It All Sunshine & Rainbows With Crypto Casinos?
We have to level with you on this one since this topic goes way deeper than what you may expect. There are some downsides to the crypto gambling world and surely there’s been a lot of criticism on these sites lately, so how do you balance between the two to unveil the truth behind it? Let’s put it this way – the reputation of crypto as a market drastically affects how players view crypto casinos.
With the fall of FTX and similar crypto-related shady stuff going on, many suspicious players have started to doubt the efficiency of crypto casinos and have gone far with accusations. Some even suggested how these sites and their wallets could be used for various scams to draw in more players, like sites themselves sponsoring and funding the player wallets and accounts of well-known influencers so other players can see their big wins, while in reality, it was not their money but rather sponsored funds.
We can say that this can greatly affect the fun of the game as gambling should be just that – a fun hobby for the enthusiasts and a way of getting the most fun out of the funds you can afford to lose. Still, it’s not all so dark since we’ve seen a fair share of other online casino scams during the years, and it only says one thing – you have to be well-educated and careful as a player when choosing the sites where you’ll wager your hard-earned money (or coins).
About Decentralized Casinos & Apps
Another major benefit of crypto casino sites is that these operators are almost always decentralized. It means they aren’t a part of a bigger chain or dependent on a different brand or a regulative body.
All the transactions can be easily spotted in the ledger, and public transactions are safer than they sound. As mentioned, blockchain technology allows decentralized casinos to operate even more safely than traditional casino sites.
Each transaction is marked on the ledger, and there’s no way of hacking into the blockchain code or stealing any information from players.
On top of it, since the sites are decentralized and aren’t dependent on a regulatory body, it helps remove geo-restrictions so crypto holders worldwide can play and wager their coins.
There are also decentralized casino apps, also known as dApps. These include provably fair games, and payments are also processed through blockchain technology, only mostly through coins based on Ethereum.
Either way, decentralized casino sites use this technology to avoid third parties. They also have no transaction fees, and you also get the utmost security on top of that.
Decentralized casinos are much more transparent than regular online casinos, and you’ll never have to worry about hackers obtaining your information from these sites.
Key Stats That Illustrate The Growth of Crypto Casinos
To illustrate the growth of the crypto gambling industry to you, our team decided to pull out some key facts and stats about the crypto gambling field. This way you can truly see just how big of an influence crypto gambling has across the main online gambling platform and operators, so here are some of the juiciest key facts:
- The industry has grown by 116% last year when compared with 2021 reports
- There’s an estimated 70% annual growth rate in crypto gambling
- Leading software providers are investing in the development of crypto games and provably fair games
- The projected value of 2027’s crypto gambling world is around $76 billion when compared with today’s $4.6 billion worth
- Some sources suggest that the industry’s value may grow even more, up to $150 billion or higher in the following years
- SoftSwiss as a leading platform solution for online casino sites suggests that the meta-casinos will turn completely to crypto deposit options in 2023
The credit for the diagram goes to SoftSwiss and you can check their post on crypto gambling trends for more detail. According to the study conducted by MarketsandMarkets, the industry should grow up to at least $76 billion in value in the next four years, and the largest growth should be contributed to the Asia Pacific countries due to their share in providing the latest blockchain-based games.
To put that into perspective, a complete iGaming scene’s market value is estimated to be around $63 billion in 2022 according to a study done by Business Wire.
So, we can see that by the projections of renowned statistics companies, the crypto gambling world should be worth at least between 10% to 20% of the complete online gambling industry in 2023, and by 2027, it could be up to 50% or more of its worth!
These are some serious numbers when we take into consideration that the iGaming scene started somewhere around 2001 with the first casino sites being launched. So, in just a few years, the crypto gambling scene may rise to the value that the current iGaming scene reached in more than 20 years of development. Well, that’s just astonishing if you ask our experts, and we can only confirm that it only means one thing – crypto gambling is taking a route of never-ending expansion in the few years to come.
Benefits Of Crypto Casinos
Before we decide whether crypto casinos are the future of online gambling, it’s time to go through their pros and cons. Since there are many benefits, let’s deal with the positive sides first, and we’ve already mentioned decentralization as one of the main factors.
Still, there are many other benefits of crypto casinos::
- Instant payments
- Utmost anonymity and security
- No transaction limit or verification
- Provably fair games
- Crypto bonus offers
It’s also sometimes possible to exchange fiat currencies for crypto coins to play on these sites, and crypto casinos often offer a wider selection of games.
Fast Payment Processing
Unlike regular casino sites, online crypto casinos mostly use crypto coins as a currency. So, you can make your deposits and withdraw winnings in BTC, Ethereum, Dogecoin, Tether, Litecoin, and others, depending on the site.
The main advantage here is that crypto payments are instantly processed, and your casino balance is replenished in minutes. While some regular casinos use e-wallets that enable fast deposits, you’d still be waiting for some time for the withdrawal to get approved.
The same goes for wire transfers and credit cards, with some options taking more than 24 hours to process withdrawals. So, the great advantage of crypto casinos is that you get instant deposits and instant payouts, which makes a big difference.
Crypto Gambling – Anonymity & Privacy
Using crypto to deposit at online casinos is the safest way of managing payments to your casino account. Sure, popular casino operators include sufficient security protocols even for those using credit cards and fiat currencies, but you are even safer this way.
👉 Blockchain transactions are as safe as casino payments get, and at least you won’t be exposing your banking information and personal details.
Sadly, hacker attacks on online casinos aren’t rare these days since they can find your credit card information this way. So, using Bitcoin or Ethereum for deposits and withdrawals rules out the chance of these attacks, and there’s no way of copying the transaction codes from the ledger.
Higher Transaction Limits
You’ll likely have a daily and weekly withdrawal limit when you are playing for USD or any other fiat currency using traditional payment methods. However, by using cryptocurrencies, you can easily avoid these limits and withdraw more funds at once.
Also, you won’t face monthly withdrawal limits like on regular casinos, which is handy, especially considering you won’t have to do much verification. Only you can access your crypto wallet and schedule payments from the casino account, so it’s different from other currencies.
For withdrawing a larger sum from regular casinos, you’d often be asked to pass additional verification steps. It’s another benefit of crypto casinos, since you won’t have to deal with all that and will receive the funds instantly and without any particular limits.
Crypto Casinos – Provably Fair Games
Besides the regular casino games available at online casinos, like slots, live dealer games, and table games, crypto sites also offer provably fair games. Much like these casinos, provably fair games operate on blockchain technology.
These are unlike standard RNG-operated casino games that work based on the RTP ratio. Instead, the games work on open-source code and smart contracts via blockchain technology. You get a part of the hash after the game round is finished to check the outcome’s fairness.
It’s the only type of game you can check for fairness and where the casino has less leverage than standard RNG-operated slots and casino games.
Of course, you can only play these games with cryptocurrency, which adds to the benefits of playing on these casinos. Decentralized gambling, therefore, brings another advantage, and these games are also quite fun to play, including Plinko, Coin, Keno, Crash, and even some provably fair slots.
These games are said to be one of the best online gambling industry innovations since the RTP ratio is much higher when compared to other casino games.
Crypto Bonus Offers & Promos
The final benefit of crypto casinos, compared to regular casino sites, is their bonus offers and promotions. While you’ll find welcome bonuses and reloading offers on regular casino sites, crypto offers are slightly different.
Since these casinos are decentralized gambling sites, they have fewer expenses, leading to their enriched bonus offering. On top of that, the industry is expanding, and now is the best time to grab some impressive crypto gambling bonuses.
Here are the main types you can find:
|Bonus / Promo Type||Summary|
|Welcome bonus||A bonus given by the casino to incentivize new players. This is often a ‘match’ of what you deposit (e.g. 100%) and usually has a maximum amount.|
|Reload promo||An incentive to make further deposits. This might be in the form of money or free bets.|
|No deposit bonus||Like the name suggests, this is a bonus which doesn’t require you to make a deposit. Because of this, the amount is usually quite small (e.g. $25).|
|Tournament||Crypto tournaments entries are often given to existing players to encourage them to keep using the casino.|
|Free spins||A certain amount of free spins on slots – usually a particular game.|
Exchange Rates & Problems
Crypto casino sites seem much more beneficial for players than regular online gambling casinos. However, it’s about more than just the convenience of play; the major downside is that you have to deposit in crypto.
This isn’t so convenient for players that don’t hold crypto, since you’ll have to use a crypto exchange to swap USD for BTC or other cryptos.
Still, some crypto casinos allow you to exchange on their sites. Also, you’ll have to keep track of your balance and keep in mind the exchange ratio if you wish to follow up on your bankroll.
It could be difficult until you get used to it, but once you have cryptos to deposit, it’s better to pick crypto casinos than regular online gambling sites.
So, What Are The Industry Experts Saying?
Because of the overwhelming worth of the crypto gambling world and projected growth rates by industry experts like SoftSwiss or renowned analytics and statistics organizations like MarketsandMarkets, the crypto gambling industry will become one of the fastest-growing industries. And no, we are not only talking about the gambling industry – we are talking about all the branches of the industry combined.
Just imagine how impossible that would seem just a few years ago. As the largest white-label gambling solutions provider out there, SoftSwiss predicts that we’ll see an even larger growth rate in 2023 than the already-impressive over 100% growth seen in 2022 when compared to the previous year. Here’s what SoftSwiss’ co-CEO Andrey Starovoitov said in his recent interview for iGamingbusiness.com when asked about the future of crypto gambling in 2023:
Despite the volatility we are observing, the crypto gambling sector and its audience will continue to grow, as its speed, simplicity and a certain level of anonymity that players value most in cryptocurrencies. We can clearly see an increasing interest in this niche and a growing number of operators, including top-tiers, are adding crypto to their payment methods.SoftSwiss’ co-CEO Andrey Starovoitov
Well, it surely seems like this will be the future of online gambling, especially given that the worlds largest software solutions brand is giving its best to become a key player in the crypto gambling world.
Drawing The Line: Is the Future of Crypto Casinos Bright?
Ultimately, crypto casinos aren’t that appealing for everyone since the value of some coins keeps fluctuating, and some players aren’t in the crypto scene. However, crypto gambling truly seems to be the future of online gambling, even though it’s unlikely that regular casino sites will cease to exist.
Picking decentralized gambling sites still seems better for players who wish to break the bonds of geo-restrictions and enjoy their favorite games without worrying about safety matters and the security of their banking information which is a common issue with regular casinos.
So, what do our experts say? The bottom line is – the future of crypto casinos is exciting regardless of your perspective on it, and we warmly recommend to all the players out there to at least get to know these sites a bit more and get proper education on crypto gambling since it may as well become the reality of the iGaming scene.
👉 Check out our guides on the best decentralized casinos and gambling DApps so you can get a full picture of how these sites and apps really work. You never know – you might just like it and switch to crypto gambling, or simply give up on it and stick with the traditional way of placing online wagers. Whatever the case, we hope that our team was able to help you decide with useful insights from the crypto gambling world!