The surging popularity of crypto gambling: What’s driving it?
The crypto gambling market size is $250m – a growing share of the $93bn iGaming industry. There is no denying the world of gambling is crazy, and these numbers can confirm that.
All this, in turn, catalyses a corresponding surge in cryptocurrency adoption among gaming enthusiasts. Yet, one might wonder: What drives these players to opt for cryptocurrency?
“Besides offering enhanced security and anonymity, cryptocurrencies facilitate faster and more efficient transactions. Players enjoy seamless, near-instant deposits and withdrawals with lower transaction fees in comparison to traditional payment methods,” explains Max Krupyshev, CryptoProcessing.com CEO.
“Overall, crypto is becoming a widely popular means of payment rather than a speculative-only asset, and as cryptocurrencies continue to blossom, gambling will follow closely behind. This trend is partially driven by the fact that access to cryptocurrencies has become easier.”
How can accepting crypto payments affect an iGaming platform?
The benefits of accepting cryptocurrency bets extend beyond the player’s experience; some of the hardest payment challenges, such as chargebacks and settlement delays, are taken off operators’ shoulders.
Along with this, one major advantage is lower transaction costs. Cryptocurrency transactions are cost-effective; this enables casinos to save money and enhance their services for players.
Moreover, online casinos can attract tech-savvy players who are early adopters of innovative technologies. This can give casinos a competitive edge and position them as forward-thinking establishments.
The growing crypto audience, with over 420 million users worldwide is another reason why companies should consider accepting Bitcoin payments. This allows businesses to tap into an extensive global client base, expanding accessibility and reaching customers in diverse regions. It eliminates traditional payment hurdles, such as the need to search for local providers.
Finally, integrating a crypto payment gateway is simple for those unfamiliar with blockchain technology. Thanks to near-instant conversion to fiat and the ability to transfer funds to a bank account, clients do not have to handle crypto directly. Moreover, crypto payment providers like CryptoProcessing.com offer round-the-clock tech support.
Crypto payments resilient amid market challenges
The casino industry is experiencing a significant surge in crypto adoption, positioning cryptocurrency as a promising future payment method.Straits Research predicts that by 2030, the global online gambling market will reach $153bn, underlining the growing demand for crypto-related services. Remarkably, crypto payments have proven their resilience, even during market downturns.
CryptoProcessing.com, a leading crypto payment gateway, serves as a testament to this resilience. It witnessed no decline in cryptocurrency transactions during these challenging market conditions. Instead, transaction volumes doubled in 2022 compared to 2021, with a 1.9x increase.
This positive trend continued into 2023, with Q1 showing a remarkable 14% net volume growth and a 9% increase in transactions compared to Q4 2022.
In Q2 2023, the majority of transactions were conducted in BTC, USDTT, and ETH. BTC maintained its dominance at 55.8%, though its share decreased by 9.7% compared to Q2 2022. Conversely, USDTT and ETH saw slight increases of 3.9% and 1.4%, respectively.
Despite BTC’s decreased activity due to market fluctuations, it remains the largest cryptocurrency by market capitalisation. Concurrently, the popularity of stablecoins is rising due to their stability, and altcoin transactions are gradually increasing.
It’s fair to say that the benefits of crypto payments extend beyond the casino industry. They are considered a win-win for everyone involved, from developers and gamers to the broader gaming community.
Some players now can’t imagine playing Blackjack without using BTC, ETH, DOGE, USDT, and other altcoins and stablecoins. In fact, there are even a number of casinos that exclusively operate within the crypto space.
However, despite these positive developments, many individuals remain unfamiliar with the fundamentals and potential benefits of crypto payments. This lack of understanding extends beyond players and operators, and questions continue to surround regulation and compliance.
Regulatory bodies play a pivotal role in ensuring the security and trustworthiness of cryptocurrencies. Successfully achieving this could unlock a multitude of new opportunities for operators and players alike.
What are the risks of connecting to a cryptocurrency payment provider?
When integrating a cryptocurrency payment gateway, companies should remain vigilant about potential risks.
One prominent concern lies in the high volatility of cryptocurrency prices, subject to dramatic fluctuations without apparent triggers. Without support for instant conversion to fiat by a crypto payment provider, there exists a considerable risk of swiftly eroding profits.
Furthermore, companies must contend with the potential receipt of digital assets implicated in illicit activities such as money laundering or terrorism financing. Such an occurrence not only damages a company’s reputation but also invites legal repercussions.
To avoid these challenges, it becomes imperative to safeguard the integrity of incoming transactions. CryptoProcessing.com possesses solutions to efficiently address and mitigate the above mentioned risks.