According to reports, crypto casinos made tens and tens billions in revenue last year despite being banned by regulators.
Financial Times reports that gamblers increasingly use cryptocurrencies to place bets on offshore unregulated platforms, circumventing the bans in their own countries.
The Financial Times cites research from Yield Sec, an anti-online crime platform, that shows crypto casinos will generate $81.4 billion gross gaming revenue in 2024. GGR is the difference between the bets placed and the winnings received.
In 2022, gross gaming revenues will be five times higher than they were in 2018.
Ismail Vali is the founder of Yield Sec.
Many countries have banned crypto gambling websites, such as the US, China and EU. The Financial Times reports that gamblers have found ways to circumvent the ban, including using VPNs, mirror links, or URL redirection.
Stake, Rollbit, and Roobet are crypto gaming sites that operate in jurisdictions with legal digital assets gambling, such as Curacao. Malta, Gibraltar, and the Isle of Man.
Stake is operated by Curacao’s Medium Rare. According to the company, Stake generated $4.7 billion GGR in 2018, an increase of 80% over 2022. Stake says its operations “are conducted in full compliance with applicable laws and regulations, are legitimate and are fully licensed,” and that “stringent know your customer procedures and anti-money-laundering processes” are in effect for creating accounts on Stake.
Financial Times reports that it created a Stake crypto-gambling account in London by using a VPN, and wasn’t asked to provide proof of residence until the game began.
YieldSec estimated that there were tens and thousands of cryptocasinos worldwide serving millions of customers.
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The report may change as new information becomes available.
