top of page

Type: PDF   I  Words: 28,000   I  September-October 2024   I  Global       

ID: CR.M03/2024                                     

 

Gambling IQ, a leading provider of business insights and regulatory advice for the gaming sector, delves into the rapid rise of cryptocurrency gambling. Excluding leveraged trading, crypto gaming is experiencing unprecedented growth. In the first half of 2023, global crypto users more than doubled, rising from 106 million in January to 295 million by December. Licensed crypto gambling has seen substantial market activity, with wagers reaching $3 billion in Q1 2021, surging to $6.3 billion by Q1 2022—a 116% increase. By Q1 2023, crypto bets had risen another 44.6%, making up 30% of the iGaming market. This growth highlights both opportunity and challenge, as the crypto gambling landscape navigates a complex regulatory environment, straddling both gambling and financial oversight frameworks. 

 

Report Highlights

 

  • Emerging Trends and Revenues in Crypto Gambling
  • Legal Status of Cryptocurrency iGaming
  • Narcos, Crypto, and Gambling: A Historical Perspective
  • Inside a Cryptocurrency Scam: Key Tactics and Red Flags
  • Revealed - The Leading Crypto Casinos 
  • Rollbit’s 1000x Leverage: Risks and Rewards
  • Predatory Practices in Margin Trading
  • Ireland's GAA: Comprehensive Ban on Gambling Advertising
  • The UK’s Soft Power: Abusing the Premier Footbal League 
  • Global Appeal - Stake.com and Everton FC Partnership
  • The English Premier League’s Big Step? 
  • The Stake.com Crypto Breach: What Happened?
  • Top 10 Most Trusted Cryptocurrency Payment Platforms

 

Report Overview

 

Despite the economic turbulence of 2022, which saw a sharp decline in digital currency values, 2024 has marked a robust recovery for the crypto market, with Bitcoin hitting new all-time highs in the first quarter. Gambling operators have capitalised on this resurgence, with Stake, one of the largest crypto gambling platforms, reporting revenues of $2.6 billion for 2023. Sportsbet.io, a Yolo Group brand that launched in 2017 with a modest net gaming revenue (NGR) of £22,000 in its first month, saw that figure surge to around £200 million in 2023. Yolo Group, established in 2014 and also behind platforms like Slots.io and Bitcasino, has cemented its position in the crypto iGaming sector, with Bitcasino recording an NGR of £300 million last year. Bitcoin remains the dominant cryptocurrency in gambling, accounting for 76.5% of the market, with Ethereum at 8.4% and Litecoin at 5.1%.Bitcoin, (BTC) is still the market leader for crypto gambling, holding a total share of 76.5%, followed by Ethereum (ETH) with 8.4% and Litecoin (LTC) with 5.1%.

 

Regulatory Issues & Insights 

 

A fundamental challenge arises from the fact that existing gambling laws generally do not specifically address crypto assets. Consequently, many countries find themselves in a legal grey area regarding the operation of crypto casinos. Compounding this issue, many Bitcoin casinos often forego Know Your Customer (KYC) procedures, allowing players to engage without providing personal information. Coupled with the use of Virtual Private Networks (VPNs), enforcing regulations becomes increasingly difficult. For instance, the UK Gambling Commission asserts that crypto deposits should adhere to the same standards as traditional payments, necessitating KYC checks and social gambling responsibilities. However, the Commission's jurisdiction only extends to licensed casino sites. The UK offers an interesting case study where operators offering crypto betting confront a regulatory framework overseen by a broad agreement between both the Gambling Commission and the Financial Conduct Authority (FCA).

 

1000x Leverage, Responsible Crypto Gambling & Sports Sponsorship 

 

A pressing concern has emerged over responsible advertising and sports sponsorships involving crypto gambling and predatory leveraged trading from digital asset exchanges. Brands promoting 1000x Bitcoin margin gambling are openly advertising in the English Premier League, while FCA-

regulated crypto exchanges in the UK merely offer questionnaires and platform warnings for vulnerable individuals allowing them access to high-risk trading.

 

Predatory Margin Trading/Gambling

 

In most jurisdictions, crypto margin trading is a regulatory trainwreck and in the UK for example, Premier League football ads are throwing fuel on the fire of an already chaotic gambling landscape where the Gambling Commission & FCA are awkwardly tag-teaming legal duties. The messy

regulatory and advertising/sponsorship standards situation allows leveraged crypto trading of up to 125x on dodgy meme coins via exchanges such as Binance, with even the most conservative exchanges such as Kraken still offering 5x leverage in the UK. Opportunities to flick on a VPN and gamble Bitcoin with extreme leverage on unregulated sites often arise due to online or offline advertisements, which are not tightly regulated, leaving users exposed to high-risk behaviour. The debate on whether consumer crypto trading should be treated as gambling has now become pretty one-sided.

 

The English Premier League & White Label Partnerships 

 

The football league's sponsorship code says competitions and clubs should only enter into agreements with a gambling company licensed by the UK's Gambling Commission, or part of a 'white-label partnership', such as the agreement between the Rollbit brad, Grace Media, Gibraltar and Southampton FC. But  the UK's own Gambling Commission says that ‘insufficient checks’ in these white label deals may expose the industry to crime risks. We explore the disconnect between the Premier League’s efforts and the UK Gambling Commission’s stance. 

Crypto Gambling, Leveraged Trading & The English Premier League's Quiet Wager

€199.00Price
  • Companies/Brands featured in the report:

    • Alchemy Pay
    • Bally's
    • Bc.Game
    • Bet Construct
    • Bet Play
    • Binance
    • Bitcasino
    • BitPay
    • Bitcoin Penguin
    • Bitstarz
    • Bragg Group
    • BVNK
    • Chanegelly
    • Cloudbet
    • Cobase
    • Coinbase
    • Coinpayments 
    • Crypto.com
    • CryptoPay
    • Cyvers
    • Decentral Games
    • Duelbits
    • Ethereum Foundation 
    • Entain
    • Etoro
    • Everton FC
    • Fast Token
    • Faze Clan
    • Fortune Jack
    • Fun Token
    • Flush
    • Flutter
    • GAA
    • Gamstop
    • Gamcare
    • Gamesys
    • GBG Plc
    • Grace Media
    • Ignition Casino
    • Inverite
    • I2c
    • Justbit
    • Kraken
    • Mega Dice
    • Metaspins
    • Mbit Casino
    • MGM Resorts
    • MiFINITY
    • MoonPay
    • Napoli FC
    • NowPayments
    • OpenBet
    • Paysafe
    • Paybis
    • Polestar Casino
    • Polymarket 
    • Reddog Casino
    • Ripple
    • Rollbit
    • Satoshi Dice
    • Skrill
    • Slots.io
    • Solcasino
    • Southampton FC 
    • Sports Bet
    • Spinbet
    • Stake
    • Stitch
    • Stripe
    • TG Casino
    • Tron
    • Treezor
    • Trilo
    • TrueLayer
    • Trustly
    • Wild.io
    • Vave
    • VBet
    • WorldPay
    • Yolo Group
    • Yodlee
    • 7Bit Casino

     

    Segment by Application

    • Cryptocurrency Gambling 
    • 1000x Crypto Gaming
    • Leveraged Trading 
    • Football Sponsorship 
    • White Label Deals
    • A2A Payments 
    • Onboarding 
    • KYC & AML 
    • Anti Fraud in Gaming
    • Online Casino Gambling
    • Sports Betting
    • Responsible Gambling
    • ID Software
    • Age Verification
    • Financial Risk
    • Gambling Services
    • Retail & Ecommerce
    • Tele & Gaming
    • Gambling Industry
    • iGaming
    • Age Verification
    • Land-based Gambling