Crypto Casinos on the Rise Despite Bans, Reports Financial Times
Despite facing bans in many countries worldwide, crypto casinos are seeing a staggering increase in revenues, exploiting loopholes and aggressive marketing strategies to draw in users.
- The gross gaming revenue from illegal crypto gambling surged to over $81 billion in 2023.
- Platforms like Stake, Rollbit, and Roobet employ aggressive social media marketing, targeting users via influencers.
- Efforts to curb their reach have largely failed due to difficulties in regulating access and users' use of VPNs and mirror sites.
- Despite legal risks, the lack of effective enforcement makes it challenging to control the spread and influence of these gambling sites.
- Stake, a major player in the crypto gambling scene, processed 4% of all Bitcoin transactions globally.
- Legal and practical challenges hinder the fight against illegal online gambling.
In a revelatory piece published by the Financial Times, the world of crypto casinos, despite facing outright bans and living in regulatory grey areas in parts of the world like the USA, China, the United Kingdom, and much of the EU, is thriving and booming. In 2023, these platforms saw their gross gaming revenue jump to more than $81 billion, a fivefold increase from the previous year. Platforms such as Stake, Rollbit, and Roobet are at the forefront, riding the wave of explosive growth through a mix of regulatory evasion and bold marketing strategies.
Marketing Mania and the Influence Game
How have crypto casinos sidestepped bans and grown at such an alarming rate? The secret sauce appears to be a mix of aggressive marketing and leveraging social media to their advantage. The platforms have poured vast resources into advertising, heavily relying on streamers, YouTubers, and TikTok influencers to attract customers. These influencers often tout the platforms as a fairer alternative to traditional online gambling, highlighting supposed better odds, anonymity, and easy access, claims that can be dangerously misleading, particularly to minors and those with gambling problems.
Dodging Regulations with Tech Savvy
Another factor fueling their growth is the ease with which users can access these banned services. Through VPNs, mirror sites, and redirects, players from countries where crypto gambling is banned can easily find their way to these platforms. This accessibility is further enhanced by influencers who spread the word and incentivise sign-ups through promo codes. Moreover, the gambling sites utilise complex structures like white-label models to enter regulated markets without direct regulation, adding to the hurdle for authorities trying to crack down on illegal gambling activities.
Stake.com: A Crypto Casino Case Study
Stake.com, one of the most prominent crypto casinos, has been a particular focus. Reportedly responsible for processing 4% of all Bitcoin transactions globally, Stake has claimed to adhere to all relevant laws and regulations. However, investigations, such as those by the UK Gambling Commission, have found otherwise, leading to legal action and the eventual withdrawal of Stake from the UK market.
The Road Ahead for Crypto Casinos
Despite the clear legal frameworks in theory, in practice, these platforms' international and digital nature make it incredibly challenging for regulatory authorities to take effective action. With the continuous support from influencers and the complex international structures of these gambling companies, the future of combating illegal crypto gambling remains uncertain.
As the industry continues to evolve, one thing is clear. Without significant advancements in international cooperation and more effective enforcement mechanisms, the world of illegal crypto gambling is unlikely to wane soon.
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Peter Wilson is the Editor-in-Chief at GamblingAuthority. He has more than nine years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
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