The rise of cryptocurrencies can be named as one of the most peculiar and widely recognized trends of the recent decade. Starting from a relatively obscure position, dismissed by many leading experts in finance and technology, crypto arose to great prominence, beginning to permeate and shape many other fields of tech, economics, and even culture. One such incursion happened in the world of iGaming, where crypto online gambling brands established themselves as a whole new way of operating games and processing payments.
The crypto gambling formula has quickly spread through advertisers and affiliates, gaining popularity and growing to challenge well-entrenched fiat brands that existed for decades. Soon, they overtook many traditional brands.
Best affiliate programs 2023 today all have at least some offers from rapidly growing crypto brands.
In this article, we aim to explore the success of crypto in iGaming and try to recognize and predict future trends to be best prepared for the coming developments in both crypto and online gambling.
The Ascendance of Crypto Gambling
As we already mentioned, crypto gambling has experienced quite a remarkable growth in the last eight to ten years. Let’s turn to the most recent available data. In Q3 2021, the volume of sports bets placed in cryptocurrencies online increased by 2.8 times compared to the same period in the previous year. This growth persisted into 2021, with a substantial 28% increase from Q2 to Q3.
This surge is attributed to multiple factors, including the global rise in digital consumption and increased investments by iGaming companies in marketing efforts. As a result, online gambling and betting, particularly among younger players over the age of 21 – who are more likely to be interested in crypto and use it in their daily lives – have gained popularity, with cryptocurrencies playing a significant role in this shift.
Cryptocurrencies vs. Fiat: A Changing Landscape
The cryptocurrency revolution is gradually replacing traditional fiat currencies in the online gambling sphere. Comparing Q3 2020 to the same period in 2021, the proportion of bets made in cryptocurrencies increased significantly by 27.6 percentage points. Moreover, from Q2 to Q3 of 2021, the share of bets made using cryptocurrencies grew by 10.3 percentage points, climbing from 33% to 43.3%.
This growing popularity is closely linked to the maturation of crypto brands. In Q3 2020, these brands were still relatively new to the market, but they have since evolved into experienced players in the crypto gaming industry. Their expansion into new markets has been instrumental in driving the adoption of cryptocurrencies in online gambling.
Crypto vs. Fiat: Sports Betting
While cryptocurrencies are making inroads in traditional online casinos, the landscape is different in sports betting. In this category, fiat currencies continue to hold a dominant position, accounting for 98.76% of bets compared to 1.24% in cryptocurrencies during the third quarter of 2021.
However, the tide is turning, as many bookmakers are now considering the integration of cryptocurrencies into their operations. The crypto audience is gaining importance, and as a result, cryptocurrencies are becoming an essential part of launching new projects in the sports betting sector.
Crypto Gambling Brands and Affiliate Programs in 2023
In 2023, the online gambling industry anticipates further growth in the crypto-gambling sector. As competition intensifies, crypto brands are emerging as key players. These brands are targeting younger generations from regions like Canada, Germany, and Asia, who are more inclined to adopt cryptocurrencies. Notable crypto gambling brands are focusing on building strong communities through chats and forums, enhancing player engagement and retention.
In the realm of affiliate programs, the best programs in 2023 will be those that can effectively connect these crypto-gambling brands with their target audience. With an influx of new players entering the crypto gambling market, affiliates play a pivotal role in driving growth and revenue for these brands.
The Role of Education and Regulations
To harness the full potential of cryptocurrencies in gambling, closer cooperation between businesses and regulators is essential. Regulatory frameworks should be developed to accommodate the adoption of cryptocurrencies in the gambling industry, enhancing transparency and providing guidelines for their use.
Support and education are crucial for operators and game studios looking to integrate cryptocurrencies. Training operational teams on the use of crypto is an essential growth area to ensure a seamless transition into the crypto gambling market.
In 2023, notable achievements within the crypto-gambling sector are gaining recognition. Industry players who have demonstrated leadership in this field are receiving accolades. Such recognition underscores the significance of innovation and integration of cryptocurrencies in the gambling industry.
Predictions for 2024
Despite the inherent volatility of cryptocurrencies, the crypto-gambling sector is expected to continue its growth trajectory in 2024. Players are increasingly valuing the speed, simplicity, and anonymity that cryptocurrencies offer. More operators, including major players, are expected to incorporate cryptocurrencies into their payment methods, further solidifying the role of cryptocurrencies in the online gambling industry.
In conclusion, the crypto gambling industry is experiencing remarkable growth, with cryptocurrencies gradually replacing fiat currencies. In iGaming in 2024, crypto brands will play a pivotal role in connecting players with the larger crypto industry. Education, regulatory cooperation, and continuous innovation will be instrumental in shaping the future of crypto gambling. As we move forward, the landscape of online gambling will undoubtedly become dominated by the ever-expanding influence of cryptocurrencies.
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