The Impact of Cryptocurrencies on The Gambling Market: Which Coins Are Used For Gambling

In general, cryptocurrencies have changed how people move money online. The gambling market just happens to be one of the biggest adopters of digital currency. From reshaping payments to enhancing player experience, crypto has already benefited the gambling sector a lot. 

The relationship has gone from the first wave of Bitcoin-only casinos to today’s multi-coin platforms. In this piece, we’ll trace the exact relevance of crypto on the entire gambling scene. In addition, we’ll provide a highlight of the most used coins in the current gambling market.

Crypto’s footprint in gambling; an overview

In the present day, crypto gambling is a very visible part of the online gambling system. This wasn’t the case a few years back, when online gambling had only just gained traction. Today, crypto gambling can be credited to the wide adoption of cryptocurrency despite many differences. By providing a faster, cheaper, decentralised and accessible-to-all payment model, crypto has become a solution for many industries. 

The convergence happened around 2012, with the emergence of Bitcoin as a fiat alternative. It has been history since then. A key factor here was crypto’s ability to address long-standing issues in traditional gambling. These issues were primarily slow transactions, limited access and higher service fees. 

Also, crypto’s host of solutions stems primarily from blockchain technology. This is a digital decentralised ledger that fosters transparency, security and non-repudiation. And just like prayers waiting for answers, blockchain received global acceptance, giving rise to provably fair games in gambling. The growth has been exponential since.

According to cnn.com, crypto gambling generated $81.4 billion in gross revenue, a clear statement of its exploits. Many sources have also projected the crypto gambling market to be driven by a CAGR of 21.8% through 2030. 

This is an obvious encouragement for the more traditional casinos to join the bandwagon, offering crypto payment options. In fact, lots of new casinos platforms are diversifying their payment channels to accommodate crypto as per popular demand. (Source:  https://casinocanada.com/casinos/new-casinos/).

Key benefits of cryptocurrencies in gambling 

“Our platform thrives on cryptocurrencies like Bitcoin and USDT, which allow us to process billions in bets while offering players unmatched speed and privacy.” – Ed Craven, co-founder at Stake.

As mentioned earlier, crypto provides gambling with a host of solutions to problems that plagued traditional gambling. The next few paragraphs highlight the key merits crypto has afforded the wide gambling market.

Fast Transactions

Everything being equal, crypto transactions are processed within minutes at worst. This rate is a huge step up compared to the hours or days it takes to process bank transfers. Crypto payments ensure players do not have to wait days to receive winnings or hours for deposits to be processed. 

Fun Fact: Crypto gambling sites often feature instant withdrawals under 60 seconds, a speed almost impossible with traditional bank transfers.

Low transaction fees

Traditional banking channels, especially overseas operators charge some exorbitant fees on gambling payments. Even e-wallets sometimes charge 2-3.5% of deposit or withdrawal amounts. Crypto, on the other hand, attracts very little or no fees at all, depending. This is possible because crypto transactions eliminate banking intermediaries.

Privacy and anonymity

Still on payment processing, traditional payment methods under regulation require personal and financial details. Now the gambling scene isn’t exactly where users want to give away so much personally identifiable information. As such, crypto once again comes to the rescue as it allows users to transact anonymously. Especially in regions where online gambling is restricted or stigmatised, anonymity can prove very useful. 

Global Accessibility

Because it is not centrally regulated, cryptocurrency is used across borders every single day. This advantage enables players from at least 60 different countries to transact with only wallet addresses. So players, from almost all continents can explore gambling online with just the crypto option.

In a nutshell, the aforementioned benefits are the very cornerstone of modern gambling platforms. Especially with emerging online casinos, there are more and more platforms offering crypto payments. Online casino analyst Gerda Grinova’s recent iGaming reviews highlight an increase in crypto adoption across new and existing casinos. 

Best coins used in gambling

As promised, we’ll be highlighting the most common crypto coins across casinos and gambling sites. 

Bitcoin (BTC) 

Bitcoin needs no introduction. Aside from being the very first cryptocurrency, it is also the most valuable one in circulation. And in the current gambling market, bitcoin is the most widely used across diverse platforms. Industry leaders like Stake have revealed that a good number of their daily transactions happen in Bitcoin. However, network congestion could cause some delays with Bitcoin, which is about the only drawback it has. 

“Like the Internet, Bitcoin will change the way people interact and do business around the world.“– Erik Voorhees.

Tether (USDT) 

Tether is the most used stablecoin in the gambling market. Its value is pegged to the US dollar, making it ideal for users who want to avoid volatility. Tether is also a top choice for online casino users, especially for its quick transaction rate.

Ethereum (ETH)

Ethereum is widely used to sign smart contracts and, aside from Bitcoin, it is the most valuable cryptocurrency out there. Especially for gambling platforms that integrate gaming, Ethereum is another popular crypto option. On the downside, Ethereum attracts higher transaction fees, higher than most coins in circulation.

BNB 

BNB is Binance’s native token, the largest cryptocurrency exchange. The native coin offers fast and cost-effective transactions and is also used by lots of crypto enthusiasts.

Litecoin (LTC) 

Litecoin is valued for its fast confirmation times and low fees, and is a go-to for micro-bets and quick transactions. It is especially popular in sports betting platforms like Thunderpick and Stake.

XRipple (XRP) 

Another fast, cost-effective and safe crypto, XRipple is a pretty popular option for many gambling platforms. Its automated ledger technology makes it one of the fastest cryptos to transact within the gambling market. 

In addition, below are some notable crypto mentions that are pretty popular at gambling platforms: 

• Tron (TRX) 
• Apecoin (APE) 
• USDC 
• Solana (SOL) 
• Dogecoin (DOGE) 

Fun Fact: Some crypto casinos accept bets as small as a few fractions of a cent, making micro-wagering possible in a way traditional payment systems can’t.

Why these coins? 

Of the thousands of crypto coins in circulation, the options we’ve covered so far have come to be the most used in the gambling scene. Quite obviously, these coins have come to be preferred for one reason or the other. For a better understanding, let’s highlight the most important qualities these coins bring to the gambling industry: 

1. Speed and Cost: transaction speed and cost effectiveness are the major reasons for crypto’s market appeal. Crypto tokens, especially those on Layer 2s facilitate faster deposits and withdrawals compared to bank wires. This is a prayer answered for gamblers who play, deposit and cash out frequently. 

1. Global reach: Although most crypto coins are far-reaching, some of them have gained worldwide acceptance and recognition. This global status aligns with the need for gambling companies to scale their products and services. Also, a wider reach means operators can serve players in regions where fiat has cumbersome restrictions.

1. Privacy: As mentioned earlier, crypto payments channels do not require standard KYC procedures. As such, users can reserve their personal information by going all-in on crypto deposits and withdrawals.

Concerns surrounding cryptocurrency in the gambling market

On the not-so-bright side, crypto’s advantage also comes with notable risks and concerns. These concerns stem from the very infrastructure of cryptocurrency which is sometimes exploited. Let’s highlight some of the most profound concerns crypto has generated thus far;

Volatility

Volatility is a major downside of crypto assets. Because of its massive adoption, millions of people are trading cryptocurrency at every turn. This creates lots of price movements in the market causing the value of the coins to be unstable at intervals. 

Volatility constitutes a significant risk for players as many users store their winnings in crypto. Price swings can change the value of a player’s balance between deposit and withdrawal. The most effective way to mitigate this ordeal is to stick to playing with stablecoins. 

Regulatory uncertainty

To this day, there are still regions with no solid stance on crypto payments in general. Many countries, especially in Africa are yet to draw up a proper framework for crypto operations. This uncertainty, in part, is due to the largely decentralised nature of cryptocurrency operations, which makes oversight tedious.

Money laundering concerns

On the operator side, gambling laws put high demand on platforms to mitigate money laundering. And while curbing money laundering is more straightforward with fiat, it is a grey area with crypto.

Finally 

Cryptocurrencies are a game-changer in the gambling industry. So far, the transaction speed, accessibility and privacy fostered by crypto payments are unmatched. And in the current market, coins like Bitcoin, USDT and XRipple are at the forefront of gambling platforms. Despite the effect of volatility and other concerns surrounding crypto payments, it still appeals to gambling operators and users alike.