Crypto Casinos Generate $81.4 Billion Revenue in 2024 Despite Restrictions
Crypto casinos generated over $81 billion in revenue from betting in 2024, despite ongoing regulatory restrictions in major jurisdictions. According to a report, wagers paid in crypto in 2024 resulted in $81.4 billion in gross gaming revenue (GGR), which is the difference between bets taken and winnings paid out. This significant revenue growth comes despite the fact that gambling sites are blocked in several key regions, including the United States, China, the United Kingdom, and the European Union.
Ask Aime: What impact does the $81 billion in crypto casino revenue have on the global gambling industry?
The data also reveals that the annual revenue for crypto casinos has increased fivefold since 2022. This growth highlights the resilience and adaptability of the crypto gambling industry in the face of regulatory challenges. One of the leading platforms in this sector, Stake, reported a GGR of around $4.7 billion in 2024, marking an 80% increase since 2022. This places Stake on par with some of the largest traditional gambling groups, such as Entain and flutter, which reported revenues of $5 billion and $14 billion, respectively, in 2024.
Stake offers a variety of traditional casino games, including blackjack, roulette, and slots, as well as sports betting options. Users on the platform typically transact in crypto, with account balances being deposited and withdrawn directly into crypto wallets. This method of transaction adds an additional layer of anonymity and security for users, which may contribute to the platform's popularity despite regulatory restrictions.
However, the crypto betting industry is not without its challenges. In 2023, the Stake platform was hacked, resulting in the unauthorized withdrawal of $41 million from its wallets. Security firms flagged suspicious outflows from the platform on September 4, 2023, and the company confirmed the hack through social media, stating that there were unauthorized transactions from its Ethereum and BNB Chain hot wallets. The US Federal Bureau of Investigation later identified the notorious North Korean hacking group Lazarus as the perpetrators of the $41 million hack.
Despite the regulatory barriers, users continue to access crypto gambling sites through various means. One common method is the use of VPNs, which allow users to bypass geo-blocking restrictions and place bets using their crypto assets on sites that are officially blocked in their country. Former players and crypto users have reported that many online guides teach people how to bypass these restrictions to access crypto gambling platforms. Additionally, some influencers offer online tutorials that provide instructions on how to access blocked gambling sites.
Another method of accessing crypto gambling sites is through the purchase of "ready-to-gamble" accounts. These accounts have already passed through the registration processes of betting sites and are sold on social media platforms. Some users sell pre-verified crypto casino accounts for as low as $10, making it easier for individuals to bypass registration hurdles and start gambling immediately. This practice further underscores the determination of users to access crypto gambling platforms despite regulatory efforts to block them.
