Crypto casinos reportedly raked in tens of billions of dollars last year from gamblers despite regulatory prohibitions.
According to a new report by the Financial Times, gamblers are increasingly placing bets using cryptocurrencies on unregulated offshore platforms by circumventing bans in their home countries.
In 2024, crypto casinos generated $81.4 billion in gross gaming revenue (GGR), the difference between bets taken in and winnings paid out, says The Financial Times, citing research by the anti-online-crime platform Yield Sec.
The gross gaming revenue last year was five times more than it was in 2022.
Says Yield Sec founder Ismail Vali,
“It’s explosive growth everywhere.”
Crypto gambling sites are blocked in many countries, including the US, China, the EU and the UK. But gamblers are getting around the ban by using a VPN, mirror links or URL redirection, reports the Financial Times, citing experts and former users.
Crypto gaming sites, including Stake, Rollbit and Roobet, are based in jurisdictions where digital asset gambling is legal, including Curaçao, Malta, the Isle of Man and Gibraltar.
Stake, operated by Curaçao-incorporated Medium Rare, pulled in $4.7 billion in GGR last year, up 80% from 2022, according to the company. Stake says its operations “are conducted in full compliance with applicable laws and regulations, are legitimate and are fully licensed,” and that “stringent know your customer procedures and anti-money-laundering processes” are in effect for creating accounts on Stake.
However, Financial Times says it was able to create a Stake crypto gambling account from London using a VPN and was not asked for proof of address until after starting to play.
YieldSec estimates there are tens of thousands of crypto casinos worldwide, serving tens of millions of users.
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