Since the start of the global health pandemic the adoption of cryptocurrency has bloomed. In the global igaming industry regulators have pushed to legalize gambling in order to drive much-needed tax revenues.
In the USA, 12 states already offer or will soon offer both in-person and online legal sports betting, while 3 states offer online and mobile sports betting only (Oregon, Tennessee & Virginia).
Las Vegas has reported four record-breaking consecutive months of $1B plus in monthly revenues from gambling.
The crypto fintech industry is also booming, with a wealth of companies offering cryptocurrency solutions to a variety of sectors.
Online betting companies also offer a range of payment options, from PayPal to debit cards. But, one thing in common for all payment methods has been the use of fiat currencies. Until about a year ago, when many of the top-tier online sportsbooks and casinos started offering Bitcoin (BTC), Ethereum and other leading digital currencies as a payment option for both deposits and withdrawals.
But, why? Well, we’ll explore and give reasons to why cryptocurrency and online betting suit one another.
The Surging Number Of Cryptocurrency Users
A recent assessment of the cryptocurrency industry had it valued at an astronomical $2.48 trillion. While the market is currently in a slump, pioneering coins like Bitcoin are still up 2% for the year.
The prominence of cryptocurrencies in developing nations and now the mainstream adoption of digital currencies by the financial giants like Visa and Mastercard is changing the public’s perception of crypto. There’s still a long way to go before we see crypto as a means to pay for your groceries for the average citizen in Western society, but many companies are paving the way for the future.
For now the lack of regulation and swiftness of payment makes it the perfect partner for online gambling. There still aren't many regulatory bodies involved in crypto. But, that’s not to say it’s unsafe for customers, it’s just highly compatible with gamblers and their preferences.
Stricter Regulations Suit Crypto
We’ve seen gambling commissions and authorities tighten their grip on the way in which sportsbooks and casinos can advertise and interact with customers, notably to do with the amount of funds bettors can deposit. However, these restrictions are attributed to fiat currencies, which opens the door to crypto to fill the void for high-rollers.
One thing that has always been a point of contention for online betting companies and regulators has been the identification process, with accusations of the potential for money laundering and underage gambling. The process known as ‘Know Your Customers’ (KYC) is essential for the safety and legality of online betting.
With Bitcoin and cryptocurrency e-wallets, there is a registration process, but it’s not anywhere near as rigorous as the KYC process at online casinos and sportsbook providers. The fact that crypto users can remain largely anonymous means that they are able to skip the KYC requirements. While this isn’t a good thing, it’s the reality of the industry and the desires of the customers.
Sportsbook And Casino Bonuses
One aspect of crypto that is particularly appealing to customers, and apparently to providers as well, is the betting bonuses. The top online sportsbooks for U.S gamblers accept cryptocurrencies - as well as offering customers a broad range of deposit bonuses and special betting promotions solely related to Bitcoin, Litecoin and Ethereum.
Bitcoin is often highly recommended and encouraged over traditional fiat deposits. What’s more, customers will be able to find a variety of their favorite casinos games and slots allowing bettors to bet directly with Bitcoin and other cryptocurrencies.
As well as customers being able to save on bank transfer fees by using crypto, any winnings gained from gambling online with BTC can be directly deposited back into e-wallets, simplifying the process when compared to that of fiat currency. It seems that the providers and customers are already adjusting to crypto as a payment method and the future certainly looks bright for crypto.
