The Economic Impact Of Crypto Gambling
Crypto gambling has taken over the general iGaming scene by storm, and it’s nearly impossible not to ask yourself about the economic impact it comes with. To be precise, SoftSwiss conducted a survey which resulted in a conclusion that there’s a rise of 83.6% in online crypto bets from the second half of 2022 to 2023.
If you are like us, you’ll be glad to hear that, but in this guide, we’ll delve deeper into the economic considerations of crypto gambling as an industry branch. We’ll go over the possible limits and room for growth, as well as how these can affect you as a player, so stay tuned.
What You’ll Learn In This Guide
- How crypto casinos influenced the whole crypto community and industry
- New models of crypto gambling sites and business opportunities
- Impact of decentralization on the economy behind gambling Dapps
- Crypto gambling market trends and values
The Rise of Cryptocurrency Gambling
The world of crypto gambling started expanding ever since the first Bitcoin casinos like mBit Casino appeared in 2014. so you could say that this branch of the industry is still not more than a decade old.
However, that didn’t prevent the stellar growth of crypto gambling sites even though only Bitcoin was available as a currency back in the day. Fast forward a bit, and now we have dozens of different crypto coins approved by major crypto gambling sites.
That’s also where gambling Dapps come into play as decentralized platforms where players can safely and anonymously wager their crypto coins without any centralized restrictions.
In the past few years, it’s pretty obvious that crypto gambling is becoming the future of online gambling and all the metrics and latest trends confirm that. Fiat currencies are simply outdated in this industry branch as blockchain-based transactions are way more secure and come with lower fees for players and casinos alike.
Economic Impact of Crypto Gambling
We could go on for days about the rise of crypto gambling sites and general economic impact, but our team of experts has only one goal in mind. It’s to equip you with enough knowledge so you can pick the best gambling Dapps in the crypto world, so we’ll discuss some main economic metrics that affect you as a player below:
Boosting the Cryptocurrency Market
To help you put the general online crypto gambling inputs into perspective, it’s enough to say that around 50% of all BTC transactions online are based on online gambling. That’s a huge chunk that only verifies the growth of crypto casinos and the convenience of crypto for online players.
It also allows Dapp casino sites to act as an incentive for the development of crypto trading and increasing its volume. It’s a simple matter of demand since more and more players are investing their crypto on gambling sites, so more networks and online casinos are added by the day so the industry can keep growing steadily.
Creating New Business Opportunities
The fact that so many online players are willing to put their crypto funds on the line also gave birth to more and more opportunities. We are not saying that you have no chance of winning here – it’s quite the opposite since this also means more opportunities for players.
One example of how new business models can arise is the new way of crypto gambling – the provably fair gambling algorithm. It allows players to place their crypto bets on games specifically designed for crypto wagers, and you can check the fairness of the games so there’s a contributing factor for players as well.
On the other hand, this also gave birth to no-KYC casinos since these don’t require players to go through bothersome sign-in procedures. You can simply initiate your account within minutes and already be playing in the time that you would regularly still be spending on account creation on regular online casinos.
Tax Implications and Regulatory Challenges
The matter of tax implications is still a tricky one since cryptocurrencies are still not as regulated as regular fiat casinos. Some countries like the US and Canada require players to pay certain taxes on their gambling winnings, but things can get blurry when it comes to online gambling.
Crypto is certainly a way to break free from any legal restrictions and to gamble safely without having to worry about centralization. That’s why decentralized gambling Dapps are so popular among crypto players, but there have been recent talks about enforcing certain rules and regulations which may include future taxes on crypto casinos.
Decentralization and Economic Power Shift
Gambling Dapps as a whole concept makes the industry much more player-focused than ever before. It’s the simplicity of crypto payments and smart contract execution that allow players to simply get a much better experience.
If you are considering joining a crypto gambling site but you aren’t sure if that’s the right way to approach online gambling, we encourage you to take a look at our guides.
Or, don’t take our word for it and look for what other experts outside the iGaming niche have to say, and you’ll understand how decentralization helps empower players. In a nutshell, you’d get much safer and faster transactions, a chance to play without sharing your details, and a way out from centralized restrictions and RNG games into the world of provably fair gambling and special crypto games.
Potential Risks Of Crypto Gambling
Even though you may get a sense that crypto gambling is a flawless new concept, there are certain limits here as well. We’ll discuss briefly some of the main ones so that you can come at it prepared if you decide to join one of the sites on our list:
If you are an experienced player, you’ll be familiar with the term “volatility”. It’s usually been used to describe the risk and the relation between your risk and potential prize when playing slots with different RTP values.
However, volatility is also important in the crypto world since it determines how much risk you take with each crypto coin due to market fluctuations. It’s like inflation for regular currencies – the value of one coin can rise and plummet within the same day and you’d have to always think things through to understand your current balance and payouts.
There’s a solution for that though as you can find some coins like Tether casinos where USDT is bound to the value of a US dollar, but we are just spitting facts here. The truth is it’s a cycle where the value of one coin can be affected by the number of its users, and that can be connected to the number of crypto players using the coin for online gambling.
Regulatory Crackdown and Compliance Costs
Another thing that can affect the crypto-gambling scene is law regulation. While currently there’s no such thing for the crypto gambling world, it’s likely we’ll see governments all over the world enforcing at least some form of rules or law concerning cryptocurrencies and their usage for online transactions.
Since these also affect online gambling, from the moment new regulations are passed, crypto gambling will become less beneficial for players. Right now decentralized casinos have low costs of running the show and even some in-house games are made to reduce the cost of running external casino software, but that can all change with regulations.
If you don’t know what you are doing, it’s possible to run into several risks while gambling online with crypto payments. First, you may run into shady sites that run on an offshore basis and if you come at it unprepared, you may not be able to withdraw your funds.
Also, there’s always the matter of fluctuation when it comes to cryptocurrencies and the risks get even greater when you consider the lack of regulations. Still, as long as you have a valid source and some pre-knowledge, that doesn’t have to be a bad thing.
The Road Ahead: Predictions and Our Take
Overall, we can see how fast the world of crypto Dapp casinos is growing and there’s no challenging that with the latest trends. Still, it’s good to be balanced here and to know both sides of the story to make a well-informed decision.
While it’s true that decentralization is great for players due to bigger bonuses, more privacy, and secure transactions, it’s also sometimes a bad thing. If you don’t know how to pick a reliable site or simply don’t know how to manage your crypto bankroll, things can turn the other way around pretty quickly.
There’s no doubt that crypto gambling is the future of online gambling and because of that, we advise you to educate yourself on both sides of the story before placing your first bets.
What are crypto gambling Dapps and how do they work?
Crypto gambling Dapps are decentralized gambling apps and platforms where players can wager their crypto coins without any authority being above and enforcing additional rules.
What are the main implications of crypto gambling?
The main implications of crypto gambling include the relationship between crypto Dapps and the crypto market as a whole, tax implications, and decentralization.
Will I have to pay taxes on crypto casino winnings?
No, you still don’t have to pay taxes on crypto casino winnings in most countries, but we strongly recommend you double-check this before playing.
Are gambling Dapps legal?
Yes, gambling Dapps will be completely legal in 2023 and they will remain legal until the gambling regulations and legal notices are enforced to jeopardize their status.