Blockchain technology is making its mark on the gaming industry, with a growing number of online casinos now accepting popular cryptocurrencies as valid payment methods. This shift is gaining momentum as players increasingly view digital currencies not just as a novelty but as a reliable and secure way to make deposits and withdrawals.

Recent research highlights the growing interest in crypto betting. A report by SOFTSWISS, a leading iGaming technology solutions provider, reveals that crypto bets surged by over 21% in 2023. This conclusion was drawn from data gathered from more than 600 bitcoin casinos operating under the SOFTSWISS platform. The figures from SOFTSWISS clearly indicate a rising demand for cryptocurrency integration in the online casino landscape.

Crypto Expands Beyond a Niche Sector

SOFTWISS’s comprehensive analysis for 2023 highlights a significant uptick in overall betting sums, with both fiat and cryptocurrencies showing substantial growth. However, crypto is steadily emerging from the shadow of fiat, claiming an increasingly larger slice of the betting pie. The data for 2023 illustrates a 21.1% growth in Crypto Bet Sum, while Crypto Bet Count has surged by 50.5% year-on-year.

The shift towards mainstream acceptance of crypto betting is driven by the accessibility and affordability of digital tokens, enticing players to transition from traditional fiat currencies. Operators are now accommodating this shift by enabling in-game currency conversion, allowing those with crypto assets to engage in games initially designed for fiat transactions.

The appeal of blockchain technology lies in the anonymity it offers and the prospect of instant transactions with reduced fees, making digital tokens an attractive option for players. As banking remains a pivotal element in online gambling, players are quick to adopt methods that simplify payouts.

In addition, players are showing a tendency to place larger bets with crypto compared to fiat. In 2023, the average crypto wager ranged between 1.59 and 1.88 euros, whereas the average fiat bet hovered around a median stake of 0.82 euros, underscoring the growing confidence in digital currency betting.

Players Prefer Bitcoin for Crypto Bets

Over 900 operators worldwide accept crypto payments, and the range of eligible tokens is diverse. However, research into players’ preferences shows that Bitcoin is still the primary choice, with 73.3% of bets made in Bitcoin. Next on the list is Ethereum at 9.9%, followed by Litecoin at 6.6%, while Tether and Dogecoin account for 4.6% and 3.1% of crypto bets, respectively.  

One notable fact from the SOFTSWISS iGaming Trends 2024 survey is that Bitcoin has improved its dominance by 3.7% over 2022, while Ethereum declined by 5.0%. Bitcoin will retain the lion’s share of the market in 2024, thanks to its reputation as the flagship token of blockchain technology and high market value, inspiring confidence among players. 

Factors Driving Crypto Gambling

The rise of cryptocurrency in online gambling in 2023 can be attributed to several key factors. One big driver of blockchain wagering is demographics, with a clear correlation between the age groups of online gamblers and cryptocurrency adopters. Both Millennials and Gen Z represent a substantial segment of the player pool. 

For example, in the United Kingdom, Millennials aged  35 to 45 represent 31.1% of the players’ pool, while Gen Z, meaning the age group of 25 to 35, accounts for 23.8% of the market.  In the United States, 53% of crypto owners are aged 18 to 34. These stats correspond to trends in other countries and align with generations that are eager adopters of cryptocurrencies.  

Streaming platforms have indirectly boosted advertisements for online gambling, generating a new fan base for crypto betting. Integrating gamification elements is another pivotal factor in incorporating social elements and fostering a communal gaming environment. 

Additional insights reveal a surge in interest in cyber sports betting, with average bets during esports tournament seasons increasing by 37%. A notable trend is that approximately 80% of players prefer using mobile devices for their gaming activities. While online casinos have a global reach, forecasts indicate that South America is set to become one of the most promising online casino markets in 2024.

North America and Europe are expected to continue their growth trajectory, whereas Africa and the Middle East are not anticipated to see a significant boom. Asia maintains a stable position, ranking in the middle of the global market spectrum. As the gaming industry expands, the volume of crypto bets is also expected to rise. The crypto online casino sector is gearing up for further growth in 2024, particularly with the rapid adoption of regulatory frameworks worldwide.

Conclusion 

The surge in crypto bets in 2023 highlights the growing mainstream acceptance of cryptocurrencies in the gaming industry. Players increasingly view digital currencies as a reliable and secure payment method, with benefits such as anonymity, reduced fees, and instant transactions. Looking ahead, the sector is poised for further expansion in 2024, supported by the rapid adoption of regulatory frameworks worldwide.