What benefits do crypto payments offer for the gambling industry?
Lower transaction fees
One of the reasons why many bookmakers became crypto bookmakers has to do with the transaction fees, among many others. Cryptocurrencies eliminate most/all transaction fees, so you don’t have to deal with a significant number of fees when gambling. That’s very appealing for bookmakers and players. In doing so, some of the player base chose to migrate to crypto bookmakers, as it’s a better experience for them. According to Betfree, bookmakers like 1xBet charge fees on card deposits, but not on crypto.
Faster transactions
Yes, cryptocurrencies offer much faster transactions, both for deposits and withdrawals. For many gamblers, transaction speeds are important, because no one wants to wait for a long time to either play the game or access funds. Cryptocurrency eliminates that, and it makes the process much more streamlined.
A boost in privacy
We should keep in mind the fact that privacy is always a major concern when it comes to online gambling. Due to its nature, cryptocurrency is the best fit for anyone who wants to maintain their anonymity and privacy in the online world.
They can afford to offer better odds
Since cryptocurrency bookmakers have less overhead, fees and so on, it’s much easier for them to afford better odds. And that’s why some players choose to play only at crypto bookmakers, just because they are versatile, with great odds in most situations, and usually they surpass traditional bookmakers when it comes to the value proposition for their customers.
Great for bookmakers, even newer ones
It’s important to keep in mind that bookmakers, especially newer ones, can access amazing benefits from offering crypto support. Of course, they get to connect with an entirely new customer segment that they couldn’t access otherwise. On top of that, they have less chargebacks, due to the nature of cryptocurrencies. That, combined with the streamlined process, ends up being a very attractive value proposition for bookmakers, and more and more started adding support for Bitcoin, Ethereum and other kinds of crypto.
How does crypto betting compare with traditional betting?
As we mentioned earlier, crypto betting sites bring in a new generation of gamblers that are tech-savvy, and which also want to maintain their anonymity while betting. On top of that, crypto betting benefits from decentralization and no exchange rate fluctuation, not to mention it brings a sense of diversity to the bookmaker’s portfolio as well.
Is it legal to use cryptocurrency for sports betting?
In order for a crypto bookmaker to exist, they need to obtain a license. Just like a traditional bookmaker, those that offer crypto also have to face the same process. The difference is that due to the volatility of cryptocurrencies, they face additional scrutiny and thus they require a very good plan of implementing and using any crypto.
Moreover, crypto bookmakers also need to be compliant with the Know your Customer and Anti-Money Laundering regulations. These platforms need to implement procedures that help verify and identify bettors. There’s still anonymity when it comes to payments, but they also have to ensure that funds come from a legitimate source.
And that’s the concern, since cryptocurrencies can sometimes be used in shady/illegal activities, crypto bookmakers need to ensure those funds are not used for gambling or money laundering. Crypto regulations will vary worldwide, and some countries are more lenient when compared to others. The Isle of Man, Gibraltar, Miami offer more welcoming environments for crypto betting, other countries/places tend to be more hostile or completely against using cryptocurrencies.
That’s why countries like Australia chose to ban the use of credit cards and crypto in the case of online gambling. If you do choose to use these payment methods, you can face a fine of up to $A234750. Despite that, there’s no denying that the cryptocurrency gambling/betting world has continued to grow. In 2019, it was valued at $50, and in 2024 the market alone is estimated to be worth $250 million. Based on that growth, we estimate that cryptocurrencies will continue to be an important part of online gambling in the years to come.
However, that doesn’t mean traditional bookmakers will disappear. Instead, they will start adding crypto as a payment method. But we don’t expect them to fully transform into crypto-only gambling websites. Yet some of them will, especially if people start to adopt cryptocurrencies more heavily in the years to come.
Heavy regulatory compliance
While opting for cryptocurrencies as a payment method is a great idea for bookmakers and with many inherent benefits, there are also challenges. Cryptocurrencies are heavily regulated in many countries, and the fact that they could be used for fraudulent purposes and scams prohibit certain countries from offering the greenlight. While there are still countries where it’s easy to acquire a license for a crypto casino, there are plenty of countries where these types of casinos are illegal. Inherent cross-border issues are very problematic, and things could very well become worse in the long term.
However, there are certain trends we see when it comes to crypto bookmakers. They will continue to provide better football and betting odds in general, and we see more and more initiatives coming in regards to consumer protection, ensuring transparency and fairness within this niche.
Better fraud detection and traceability will also be implemented in the years to come, thus limiting the potential risks brought by cryptocurrency use. And on top of that, we also expect to see an increase in global cooperation. We think that countries will continue to work together in order to deliver cross-border operations and a proper international framework for online gambling. The future of crypto gambling is bright, and if they continue to offer better football/gambling odds, we can only expect more and more players to gravitate towards such an opportunity!
