Bitcoin’s price surpassed $100,000 for the first time on December 5, with cryptocurrency enthusiasts hailing it as confirmation of the sector’s long-term viability. The current bull run is once again igniting the mainstream public’s imagination.
While similar hype was prominent in the past before subsequent bear markets, many people believe this time is different. Financial powerhouses like JPMorgan Chase and Morgan Stanley are investing heavily in Bitcoin just a few years after calling the sector a fad.
With Bitcoin hitting the $100,000 milestone, we looked at the impact this might have on the online gambling sector.
Traditional gambling sites embracing cryptocurrency
While cryptocurrency-focused gambling sites are a key part of the sector these days, many traditional platforms still don’t support any tokens. You won’t find UK Gambling Commission-licensed sites offering Bitcoin.
seems inevitable that these traditional sites will start accepting this form of payment
With more and more people turning to crypto gambling, it seems inevitable that these traditional sites will start accepting this form of payment. If this does happen, strict rules will likely govern operators to ensure they remain compliant.
Some cryptocurrency gambling sites allow users to bypass Know Your Customer (KYC) requirements and play anonymously. This won’t be the case for strictly regulated platforms, where KYC checks are going to be more important than ever.
Growing confidence in cryptocurrency gambling sites
Many people are skeptical about using offshore gambling sites that solely support cryptocurrency payments. Their lack of knowledge about the sector is a key reason, with people preferring to use more conservative payment options like debit cards at tightly regulated platforms.
As more people become comfortable with using cryptocurrencies, more will likely look at these offshore alternatives. Advantages are obvious, such as bigger casino game libraries, larger transaction limits, and more lucrative bonuses.
One big driving force for crypto sites is their partnerships with live streamers to normalize their use. Massive Kick streamers like Roshtein and xQc have relationships with offshore platforms like Stake, getting tens of thousands of viewers accustomed to these sites.
Technological innovations
Many of the recent innovations and trends in the gambling sector originated through cryptocurrency gambling sites, trends that could accelerate. Crash games emerged through popular sites like Roobet and are now a core part of many game libraries.
Provably fair blockchain-based technology meant that users could check for themselves that games were fair to play. Before that, people had to trust operators who said their games received third-party testing.
smart contracts could speed up payment processing
Adopting smart contracts could speed up payment processing. Operators often have to manually approve payout requests, which can take 24-48 hours. Smart contracts can automate this process, speeding up everything.
An increase in peer-to-peer betting is also possible, with two users setting up a smart contract to create custom bets without an intermediary. The smart contract determines the winner and distributes winnings.
More regulatory focus on cryptocurrency sites
While the number of people turning to cryptocurrency-focused gambling sites will likely increase, so will regulatory scrutiny. Offshore operators can usually escape sanctions as there’s not much regulators can do to them.
One trend in the US market is state regulators taking it upon themselves to block people from accessing specific sites.
Bovada, for example, is now unavailable in 16 US states after receiving many cease and desist letters in 2024. This site, which accepts cryptocurrencies, has catered to US bettors since December 2011 without much backlash until recently.
regulators want to protect tax revenue
The success of this approach could lead to similar blocks for other major offshore sites. State regulators want to protect tax revenue and don’t want people going to black market sites.
Platforms might start looking at ways to adapt to maintain some level of compliance while still leveraging Bitcoin’s popularity.
Shift away from fiat currencies
One of the biggest redeeming factors of using cryptocurrency for online gambling payments is their speed. Bitcoin withdrawals are usually completed minutes after the request gets the operator’s approval.
can wait up to ten business days for their funds
Fiat currency payment methods, in contrast, are much slower. While e-wallets are the fastest of the bunch, anyone using card payments or bank transfers can wait up to ten business days for their funds.
As people realize the benefits of cryptocurrency payments, it is possible only a small percentage will continue using the old-school methods.
Global adoption
Levels of gambling participation globally are going to skyrocket in the coming years. With increasing smartphone access in low-to-middle-income countries, people will be able to access crypto gambling sites if no regulated platforms are available.
Residents in countries with volatile currencies can turn to digital tokens for more financial stability. Combating hyperinflation by exchanging fiat currency for cryptocurrencies is a popular trend, especially through stablecoins like Tether.
Some nations are even turning to digital tokens as the future of their economy. For example, El Salvador’s president Nayib Bukele boasted on social media recently that the country’s Bitcoin investment has generated over $333m in unrealized gains over the past three years:
Traditional sites upping their game to compete
Welcome offers and ongoing promotions at traditional gambling platforms appear quite puny when compared to those on crypto gambling sites. As the reasons to use the latter become more and more stacked, traditional sites will have to find ways to compete.
faster payout speeds and bigger bonuses are obvious moves
Offering faster payout speeds and bigger bonuses are obvious moves. While these changes will hurt their bottom line, they’re better than losing valuable customers.