The gambling market was valued at nearly 280 billion at the end of 2023. This market size is attributed to popular trends like mobile gambling and virtual slot machines. Cryptocurrencies also contribute to the remarkable spending, accounting for billions of wagers annually. Although crypto gambling is still a niche offering, spending in online casinos has increased tremendously in recent years. Here’s an overview of the growing crypto gambling market, including crypto spending metrics and popular cryptocurrencies:
Percentage of Crypto Gamblers
The decentralized and private nature of crypto transactions makes tracking the exact number of crypto gambling statistics challenging. However, surveys provide insight into popular patterns and indicate increasing crypto use in online casinos. A 2022 survey showed that 27% of US online gamblers had used cryptocurrencies in the past year, up from 18% in the previous year. The survey also revealed that crypto gamblers deposited an average of $1,200 per month, more than double the amount online gamblers (in general) deposited.
Another report revealed that $10 billion was used for gambling in 2021, an increase of over 64% from the numbers in 2020. These numbers are due to the increasing number of crypto gamblers. Most gamblers prefer crypto payments because of the anonymity it provides. Crypto transactions don’t require personal information like name or address, so players can enjoy games privately. Crypto payments are also cheaper, faster, and more convenient than bank transfers and other options. The number of crypto gamblers is projected to hit 22 million in 2024, with the US crypto gambling market expected to reach $12.5 billion.
Top Crypto and Casino Games
Bitcoin is the most popular cryptocurrency worldwide. Unsurprisingly, it remains the choice digital currency among crypto gamblers. Other options include Litecoin, Ethereum, Tether, and Dogecoin. Leading online casinos feature dozens of cryptocurrencies, but Bitcoin accounts for nearly three-quarters of all transactions. According to recent data, 72% of all crypto gambling transactions in 2022 involved Bitcoin, although the figure was a slump from 83% the previous year. Conversely, Ethereum’s share rose from 10% to 13.5%. Litecoin came third at 6.5%, followed by Dogecoin and Tether at less than 3% each.
Crypto deposits are used to explore a wide range of casino games, with online slots machine spending edging table games like roulettes, poker, and blackjack. Slot machines are the most abundant online casino offering. Some websites feature up to 10,000 unique slots spanning different themes, game mechanics, and payouts. Gamers can explore megaways, progressive jackpots, and exciting treasure quests offering life-changing payouts. Twitch streamer Trainwreck holds the record for the biggest non-jackpot crypto payout after winning 524.7 BTC. Drake is another notable gambler known for a one-time payout of $83,000 worth of Bitcoin on live roulette.
Crypto Spending in Online Casinos
The iGaming industry is worth $93 billion, which makes the estimated $250 million crypto-gambling market size a tiny drop. However, the market is growing fast, with spending increasing in every new report. Data from 2023 indicates that crypto spending rose from $2.9 billion in 2021 to $6.3 billion in 2022, an increase of more than 116%. Crypto gambling volumes also increased by 36%, up from 26%, indicating a rapid growth pattern. The value of gambling-specific cryptocurrencies rose from $150 million to $250 million between 2021 and 2022. Meanwhile, crypto bets increased by 2.2% to $6.3 billion.
Crypto spending in casinos increased even further in 2023, with reports showing a 44.6% increase in total Q1 bets. Bets made using cryptocurrencies accounted for up to 30%, according to iGaming software solutions provider SoftSwiss. As more hybrid casinos emerge, crypto gambling spending will increase. Currently, exclusive crypto casinos are in the hundreds, but the number keeps growing as demand for digital currencies among players increases. Pundits expect cryptocurrencies to become the exclusive gambling currencies in future casinos, and gamblers seek more privacy and anonymity. This means crypto spending will continue to rise.
Other Crypto Gambling Stats and Demographics
Crypto gambling profits turned over $52 billion in 2021, with most of the revenue received from Millennials and Gen-Z gamblers. According to the 2021 report, Millennials account for 48% of crypto gamblers, while Gen-Z gamblers make up 36%. Up to 65% of crypto gamblers are male, while 35% are female. Reports from 2023 also indicate that over half of gross crypto gambling revenue came from bets placed by gamblers in the 31-50 age group, with men aged 36 to 50 representing 21% of the most active players in the US.
Crypto transactions account for a quarter of all gambling payments, with nearly half of all crypto holders using their wallets exclusively for gambling. This is partly because gambling operators were the first to adopt cryptocurrencies before they became popular with eCommerce sellers. Over 40% of crypto gambling deposits are used to wager on sports, while the others are spent on casino products like slots, table games, poker, and crash games. Mobile betting also accounts for 80% of crypto gambling.
Conclusion
Popular cryptocurrencies like Bitcoin, Litecoin, and Ethereum have become almost mainstream, accepted by online stores, businesses, and retailers. Casinos and sportsbooks also see heavy crypto usage, with most people using crypto for the sole purpose of gambling. The crypto gambling market is expected to continue growing and overtake FIAT use in the coming years. Looming crypto regulations, hybrid casinos, and streaming sites also make it easier for players to learn about crypto gambling.
