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The iGaming and online casino industry have seen cryptocurrency grow rapidly in recent years.
We talked to Andrey Sternovoitov, Co-CEO of SOFTSWISS, Daniel Heywood, Co-founder at NuxGame and Matt Sahakian, CSO at Technamin to discuss the future of cryptocurrency and why it’s so important.
Is cryptocurrency used in online casinos and sportsbooks?
Andrey Sternovoitov (AS), The growing popularity of cryptocurrency gambling is a long-standing trend. We can see that a small number of crypto casinos are gaining traction and capturing a significant market share. Along with the major fiat casinos, crypto casinos are a prominent part of our client portfolio. The SOFTSWISS turnover has increased by around 35% year-on-year, with cryptocurrencies accounting for approximately 10% of that growth. This growth indicator is evident due to the volatility of major coins, which indicates a gradual increase in player interest in this type deposit.
Daniel Heywood DH: In recent years, there has been a significant increase in cryptocurrency adoption across many industries, including finance and IT. It has also been supported by thousands of individuals who use cryptocurrency outside of the corporate world. This is far from the image that crypto used to have just a few years back and serves as a testament of its growth.
Matt Sahakian, MS: At this point, I believe that crypto is inseparable with our industry. Online casinos that are well-respected offer crypto payment options. Even those that don’t, they likely have it in their short-term plans. Although online sportsbooks were a little later to adopt the trend than online casinos, they are definitely catching up with the growth of crypto sports betting.
What are some of the greatest advantages to using crypto when placing online wagers?
AS: Operators have access to a new, younger audience that is generally not the same age as traditional fiat players. The use of cryptocurrency often provides anonymity which attracts high-rollers and VIP players.
All metrics of crypto casinos, such as conversion rate, acceptance rate and other, are higher than those of fiat casinos. The SOFTSWISS acceptance ratio (successful attempts to deposits ratio) for cryptocurrency is 99%.
These are just a few of the many benefits of crypto in iGaming. Cryptocurrency is a growing trend that we have been watching over the past five years.
DH Both players and operators have many benefits, but the fastest is the one. Transactions can be done much faster and require fewer steps than traditional payment methods due to the absence of an intermediary. An additional, and very important, benefit of removing the intermediary is the subsequent reduction of fees. This makes the process easier and more cost-effective.
MS The greatest advantage of these currencies is the additional layer of security they bring due to the blockchain technology that they are based upon. Both players and operators are concerned about security, and crypto makes this easier. These currencies are decentralized, which means that players have greater anonymity when it comes to transaction history and information.
Which markets is a cryptocurrency solution most relevant to?
AS When asked about the most popular market for cryptocurrency in gambling, SOFTSWISS explains that crypto is a distinct market. It makes sense as there are significant differences between crypto and fiat audiences. The demand for fast transaction processing, availability of fair technology games, high limits, and even top game list are all completely different between these segments. The geography of crypto gamblers can be described as being quite diverse. It includes Canada, Germany and LatAm (Brazil Mexico Argentina).
DH Cryptocurrencies have a global relevance. They are playing an increasing role in every market. They are helping to expand the iGaming market in developing countries, in particular. This is due in large part to the strict banking regulations and restrictions that cryptocurrency remedies.
MS We are seeing crypto being adopted by the Asian market, as well as some areas in the LatAm market. This is also happening alongside Africa and the USA. Mexico, which is included in the top 50 countries with crypto most popular, is also big on blockchain. The trend is also being adopted by countries like the UK, Denmark, Sweden and Romania.
Are other cryptocurrencies more viable than Bitcoin?
AS We are seeing new coins rise against a gradual decline in Bitcoin’s value. However, this doesn’t mean that Bitcoin is losing its appeal, but that other cryptocurrencies such as Bitcoin are gaining popularity as gambling deposit methods. Our research shows that customers are shifting to stable coins. Faced with the crypto winter, many crypto traders have already sold volatile cryptocurrency because we live in “cash is the king” times. USDT is the most stable coin, followed closely by BUSD. In 2022, Bitcoin was no longer the best choice for payments. It is still very important as Bitcoin provides indisputable decentralization and freedom of payment. The average transaction count fell to 65% and 49%, respectively. However, it is much lower for new casinos that have a younger player base.
DH While Bitcoin is the most popular cryptocurrency, there are many options available for operators and players. To offer the most variety of payment options, clients are increasingly using a wide range of projects, including Ethereum, Solana, and Tether.
MS Once upon a time, Bitcoin stole the thunder in crypto. But that is not today. There are almost 10,000 active cryptocurrency. While not all cryptocurrencies are equally popular, some, such as Ethereum, Binance USD and Dogecoin as well as Tether, Tether, and XRP, are just as popular among bettors than Bitcoin. This is the problem with these currencies. It’s impossible to predict which one will take the lead.
What is the future of srypto online gaming? It is a trend that is likely to continue or a temporary one?
AS Despite the volatility, the crypto gambling market and its audience will continue growing, because it is speed, simplicity and anonymity that players most value in cryptocurrency. This niche is gaining popularity and more operators, even top-tier ones, are adding crypto payment methods to their operations.
DH Cryptocurrencies will be here for the long-term. I think most people can agree that. New and better solutions for the crypto industry are constantly being developed. This, in turn, drives innovation. While some of these may be temporary trends, others will remain with us for the long-term and will become part of our industry’s furniture.
MS Many people believed that Bitcoin would become a passing trend when it was first released in 2009 as an open-source software platform and a blockchain currency. We can see where these currencies are today after more than a decade. It is difficult to predict where crypto will go, just like with any other phenomenon. However, the decade-long popularity of cryptocurrency and its expansion is clear evidence that it is on a path we need to follow.
