The number of cryptocurrency bets in iGaming grew by more than 66 percent in the first nine months of 2023. Crypto, however, did not keep pace with the amount of traditional currency wagered in online casinos.
Both the use of cryptocurrencies and fiat grew with the overall iGaming market, according to recent data published by SoftSwiss, an online casino and sports betting software provider. That said, crypto represented only 28.5 percent of the total bets made in the iGaming market during the first three quarters of 2023, compared with a 32.8 percent market share during the same period last year. SoftSwiss collected the data from more than 530 of the brands it supports.
Bitcoin (BTC) is still the leading cryptocurrency used in iGaming, representing roughly 75% of the crypto use. Meanwhile, Dogecoin (DOGE), a popular “meme coin,” represented 3% of the crypto used in online casinos.
The value of nearly all cryptocurrencies has increased this year. The price of Bitcoin has roughly doubled year-to-date. So, it is a bit surprising that crypto isn’t keeping pace with fiat use in iGaming. But some of the drag could be due to the ramping up of the U.S. iGaming market.
U.S. Still a Minor iGaming Player
Since the U.S. Supreme Court lifted the ban on sports betting in 2018, the country’s gambling industry has exploded. More than 30 states have legalized sports betting. Far fewer states, however, have legalized online casinos. But that number is growing.
So far, Delaware, Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia have launched online casinos. Rhode Island passed iGaming legislation in June, and online casinos should go live early next year. Meanwhile, though Nevada passed interactive gaming legislation back in 2013, it only offers online poker. Given the influence of its retail casinos, Nevada is less likely to expand its online gambling options any time soon.
As the U.S. iGaming market grows, however, the use of crypto in that sector isn’t likely to follow. Cryptocurrency still operates in a legal gray zone in the U.S., which makes its adoption more difficult for regulated companies. Although, there is certainly interest in seeing better crypto integration in the U.S. gaming space. But sports betting, not iGaming, may be where crypto gains traction.
The online sports betting provider Stake is well-known for its early acceptance of cryptocurrencies. It's anxious to get a foothold in the U.S. – to the extent it's considering buying an existing U.S. company.
