Since the very first transaction of cryptocurrency in 2009, the number of people investing in digital currency has absolutely exploded. Industries, keen not to be left behind, have also been quick to incorporate cryptocurrencies into their operations. That certainly includes the iGaming industry, which was one of the first to introduce cryptocurrency.
Today, many of the most popular iGaming providers offer cryptocurrency as a payment method, and there are even specialist providers who have a wide range of currencies to choose from. So, just how popular is crypto amongst the iGaming community, and what’s behind its growth?
How did Crypto Enter the iGaming Community?
It may seem like cryptocurrency came out of nowhere, but it actually dates back to a white paper published in 2008. The author, the mysterious Satoshi Nakamoto, was the first to propose a virtual, decentralised currency, and his idea eventually went on to become Bitcoin. Nakamoto was also involved in the very first transaction, which took place using Bitcoin at the start of 2009, alongside his software developer friend, Hal Finney.
The aim of crypto was to create a currency that could be easily traded throughout the world and online but also had the same value weight as something like stocks. Nakamoto supported the price of Bitcoin by limiting the number of individual coins available to buy to 21 million—the scarcity of which helped to drive up the currency’s value. The decentralised nature of Bitcoin meant that individuals had more control over the future of the currency and how their money was actually spent, compared to traditional stocks and investments.
How did Crypto End Up in iGaming?
Perhaps expectedly, given it was a whole new system of finance, it took a while for cryptocurrency to really take off. In the 2020s, the currency caught the public’s attention thanks to the vocal support of influencers and online forums. As a result, Bitcoin finished off 2021 with an impressive value of £19,000 per coin, and in 2024, there were roughly 500,000 transactions made using cryptocurrencies every day.
There’s also been growth in the number of different cryptocurrencies, with the likes of Ethereum, Ripple, and even new forms of cryptocurrencies, such as the memecoin Doge, branching off from the original. Crypto has become so widely accepted that even governments now invest in it. The American Government is the biggest holder of Bitcoin in the world and has crypto shares worth an estimated £13.6 billion, showing just how far the currency has come from being a fringe concept.
After all that growth, industries had pretty much no choice but to get on board with cryptocurrency. However, iGaming was rather early to the party, with the first cryptocurrency casinos appearing around 2012, including Satoshi Dice, named after Bitcoin’s founder. It didn’t take the cryptocurrency long to catch on throughout the industry, and today, it’s not uncommon to see it offered as a payment method at many of the top online casinos, as well as those that specialise in cryptocurrency.
Why is Crypto a Popular Choice in iGaming?
Cryptocurrency has quickly become one of the go-to options for players across the iGaming industry, thanks to the range of unique advantages it offers. These include the likes of lower fees, easier global playing, and faster transaction speeds. Below are some of the advantages crypto offers in more detail.
Faster Transactions
Whereas traditional payment methods in the iGaming industry can take days, even weeks, to hit players’ accounts, crypto allows for rapid payments. Thanks to crypto’s innovative blockchain technology, which reduces the number of hurdles for payments, money can arrive within minutes or even instantly. Understandably, that appeals to lots of players who don’t want to wait days for their hard-earned winnings to come through from a provider.
Lower Fees and Easier Global Payments
A distinct advantage of cryptocurrency over other payment methods is that it faces lower fees. Usually, players only have to pay the minimum blockchain charge, meaning they can avoid any nasty surprises from hidden fees. When paying using something like bank cards or transfers, there will usually be a fee of anywhere up to £50 associated with each transaction!
As a decentralised currency, it’s much easier to make global payments using crypto. Players don’t have to face sharp or confusing exchange rates and can instead get straight to playing, regardless of where the online provider is based.
Vastly Improved Security
It’s pretty common for players to have reservations about uploading their personal information, especially financial details, onto an online casino. Their caution is understandable, given things like fraudulent or unregulated casinos continue to be a problem within the iGaming community.
However, much of this concern is alleviated when paying through a third-party provider, which means that players don’t have to directly input any of their financial information. Crypto wallets are one of the most secure methods available to players. To access a crypto wallet, users must enter a unique and completely unguessable key that only they have access to. It means there’s a much lower risk of someone else being able to access their crypto wallet, but it can also mean users lose access themselves if they forget the key!
Easier to Track
Cryptocurrency uses something called blockchain technology to keep track of all the transactions made using a certain currency. Blockchain acts as a virtual ledger, where every payment is recorded publicly for greater levels of transparency. Once a record is made, it can’t be edited, which helps to prevent things like market manipulation or fraud, and to spot human errors. For iGaming players, it makes keeping track of their payments much easier and allows for a greater level of control over spending.
So, How Popular are Cryptocurrencies in iGaming?
The cryptocurrency gambling market is worth a whopping £250 million today, and there have also been increases in the number of individuals choosing crypto payments. Between 2022 and 2023, the number of crypto bets increased 20%, and there has been a continuous growth ever since. Although the number of providers who offer cryptocurrency has increased, it’s still pretty common to see their options confined to Bitcoin or Ethereum, unless using a specialist.
Why do Some Players Have Reservations About Crypto?
Despite its growth, cryptocurrency hasn’t been accepted by everyone, and that’s largely down to its high levels of volatility. The value of cryptocurrency fluctuates significantly, making it a highly unpredictable currency with sharp drops in value. That’s partly down to crypto being decentralised, meaning that it’s not attached to an institution like a central bank that can support its value. It also means that cryptocurrency has no inherent value that justifies its worth, causing many to steer clear.
As a result of crypto being unsupported, its value can be highly dependent on public perception. If people shift against a cryptocurrency and sell off their shares, others usually follow suit, and the value can plummet as a result.
At the start of 2023, Bitcoin’s value was at the lowest point for years, with each coin worth around £16,000. Yet just over two years later, Bitcoin had climbed again to be worth a staggering £123,000 per coin. In the same month it achieved its peak value, it then dropped 10% and had experts warning of an imminent crash! Its value is hugely unpredictable, leaving many to tread with caution when it comes to crypto investing and trading.
Could Crypto Become More Popular in iGaming?
Today, it’s not unusual to see crypto offered as a payment method at some of the most popular casinos on the market. There are even some that specialise specifically in cryptocurrency options and offer a wide range of coins to choose from. However, crypto still isn’t offered at all the providers outside of specialists or the big names.
The advantages that crypto offers players, such as lower fees and faster transaction speeds, mean that the number of people who use it is increasing. As it continues to become a more and more popular option with the iGaming community, the pressure on providers to include crypto in their offering drives it to be more widely offered.
Cameron Murphy is one of the leading experts in online gambling, having been involved in the industry for over 12 years. He ensures he’s always building on this knowledge by attending conferences like IGB Live and SIGMA to keep up to date with the latest trends. His articles are known for their honesty, and he’s never afraid to talk about the negatives of a gambling provider he’s reviewing. Players can read Cameron’s expert insights in his book, The Ultimate Ireland Casino and Gambling Handbook.
