The global iGaming market will be worth more than $70 billion by the end of 2024. That figure has increased from around $37 billion before the pandemic and is expected to reach $205.6 billion in 2030.
Most of this revenue comes from casino play and betting using fiat currencies. However, interest in crypto gambling is increasing. Interest in online casinos that allow the use of Bitcoin increased fourfold between 2019 and 2022, and current estimates suggest that the market is worth around $250 million.
This figure is only a small fraction of the overall iGaming market value, but it could increase as cryptocurrencies become more widely accepted and regulated. Examining the current situation regarding crypto casinos reveals which countries could accept and regulate them in the future.
The Isle of Man was one of the first places to create legislation to regulate cryptocurrencies. The island also has a recognized online gambling industry and provides operators with licenses, which include using cryptocurrencies. These licenses are held by some of the most crypto-friendly casinos available globally.
This level of acceptance of crypto gambling is unusual at present, although there is potential for more countries to embrace crypto gambling sites in the future. Countries like the US, UK, and Canada currently do not permit operators to launch crypto casinos. However, using cryptocurrencies is permitted.
The crypto landscape changes regularly. For example, in France, the National Assembly recently approved legislation that has become known as the “Sorare Law.” This law establishes a framework for crypto games that previously faced classification as a form of gambling. It separates these games from gambling. The games are known as Jonum or “games with monetizable digital objects.” Winnings from them can only be kept as digital assets and must not be converted to a fiat currency.
While this legislation of crypto games may seem like good news for crypto gambling in France, this is not the case yet. Only sports betting, the lottery, and poker are legal at online betting sites in France, while casinos and spread betting are not permitted. For those betting activities permitted at regulated casinos in France, there is no regulation for using cryptocurrencies. It’s also worth noting that The Autorite Nationale des Jeux (ANJ), which regulates gambling in France, regularly takes down unauthorized gambling sites. So, the potential for crypto gambling in France is not as high as in other countries like the US, UK, and Canada.
In the UK, online casinos are legal and regulated. In the US and Canada, this only applies to certain states and provinces. All three countries are in the process of regulating cryptocurrencies, and the landscape remains unclear, which means that the use of cryptocurrencies is not illegal.
The situation regarding crypto casinos is equally unclear right now. Although the operation of these casinos is prohibited in each of these countries, there is no regulation to prevent players from using offshore casinos.
If cryptocurrencies are ever fully regulated in the UK, US, and Canada, the outlook for crypto gambling could be improved further. However, if regulation restricts the use of cryptocurrencies, the effect could be the opposite.
In other parts of the world, countries that have not made the use of cryptocurrencies illegal could also see the expansion of crypto gambling in the future. In Africa, these countries include Kenya, Lesotho, and Gabon. In Latin America, most countries have yet to make a firm decision regarding cryptocurrency usage, except countries like Colombia and Brazil, which have prohibited the use of cryptocurrencies for gambling.
Australia is another country that has chosen to ban crypto gambling. Like other countries that have taken the same path, their reasoning is that cryptocurrencies are difficult to track and make money laundering easier. However, this position will change as more countries regulate cryptocurrencies.
As this happens, countries are more likely to open the door to crypto gambling. This is especially true given the interest in crypto gambling, as players seek options that prioritize privacy, data safety, and fast transactions.
This regulation is already starting to happen. The EU introduced the Markets in Crypto-Assets Act (MiCA) regulatory requirements for stablecoin issuers. The regulation of the cryptocurrencies most popular in crypto gambling, Bitcoin and Ethereum, is still some way off. Still, it will happen as the appetite for using them continues to grow.
Currently, none of the major countries, like the US, UK, and Canada, allow operators to provide crypto gambling service within their boundaries. However, these countries still provide potential for crypto gambling as players can use offshore sites. There are no laws that specifically prohibit using cryptocurrencies for gambling, as there are in Australia, Columbia, and Brazil. There is also potential for the growth of crypto gambling in African and Latin American countries where there are no laws in place.
As cryptocurrencies are regulated worldwide, this could have a positive effect on crypto gambling as cryptocurrency becomes more transparent and dependable. Only time will tell if this happens.