Online gambling was a lock to succeed from the outset. Internet betting sites brought an in-demand product to the global market, and the masses embraced it. These days, the online gambling industry is a juggernaut that shows no signs of losing momentum. Bitcoin’s introduction and the ensuing cryptocurrency revolution got off to a less auspicious start. What good was cryptocurrency back in 2009 aside from being a mildly trendy investment? It’s not like there was an abundance of crypto-friendly goods and services available at the time. Still, some forward-thinking people saw the potential and the benefits of using cryptocurrency early on and started investing their funds in this. Later on, it turned out that the risk was worth it.
Things drastically changed sometime around 2012 when a few gambling sites started accepting cryptocurrency payments. Satoshi Dice is one such operation that drew a lot of interest and generated a boatload of Bitcoin betting action. While some online gambling sites added various cryptocurrencies to their lists of traditional payment options, others made cryptocurrencies the only option. Among other things, you can now wager on sports, indulge in casino games, enjoy a poker session, or play bingo with Bitcoin and a variety of other cryptocurrencies. This mainly attracted the people who did not fully trust this new currency that emerged all of a sudden.
You might ask yourself why crypto gambling is increasing in popularity? Well, there are several answers to this question. One reason for the rise in crypto gambling is the issue of privacy. Most people are hip to the dangers of divulging private and financial information over the web. Malware, Trojans, keyloggers, and other malicious tools enable malevolent third-parties to access your sensitive information. When conducted properly cryptocurrency transactions are anonymous. No private information ever changes hands. Many online casinos that take Bitcoin, as the ones enlisted here only require you to choose a username, password, and provide an email address. On top of keeping your delicate details out of the hands of the criminal element, it also shuts out entities like governments and the taxman. Pretty clever way to protect privacy.
Another reason for crypto gambling’s rise in popularity is the cost of transactions. Performing a deposit or withdrawal using a fiat currency always involves a middleman. Naturally, they take a cut. They wouldn’t be able to stay in business if they didn’t. Sure, fees related to most eWallet deposits and withdrawals are relatively low. Nevertheless, crypto transactions are cheaper. In fact, many cryptocurrency gambling sites don’t charge any fees at all for making deposits and withdrawals. Credit cards users are invariably hit with significant transaction fees. That’s assuming their online casino deposits go through at all. Then there are the cash advance fees that only serve to rub salt into the wound.
It’s not just players that pay fees. Most payment processors also ding the operators for the privilege of using their services. This inspires online betting sites to encourage their customers to use cryptocurrency. Nothing motivates online gamblers like a big fat chunk of bonus cash. Almost all crypto gambling sites offer valuable bonuses. Furthermore, sites that accept both fiat and crypto payments often offer exclusive bonuses and benefits to cryptocurrency users. From an operator’s point of view, supporting crypto payments gives them access to previously unavailable markets. And by that, more people are attracted to the online websites. From the economy view, this was the smartest move so far.
Even though several American states are legalizing online gambling, offshore crypto gambling sites remain an attractive alternative to that market. This is especially true for sports bettors. A few states have put a heavy tax burden on sportsbooks. Pennsylvania is a prime example. Bookies in that state pay astronomical licensing fees and the highest tax rate in the nation. Needless to say, they pass much of that added cost on to bettors in the form of higher margins. In other words, bookmakers in Pennsylvania and many other states offer punters less value for their betting dollar.
A random example of this would be a Week 7 NFL matchup between the Chiefs and Broncos. The average moneyline odds at Pennsylvania online sportsbooks is the Chiefs at -190 and the Broncos at +150. That means Chiefs backers need to risk $190 to potentially win $100 while a successful $100 wager on the Broncos would net a $150 profit. Compare that with a highly rated Bitcoin bookie that lists the Chiefs at -177 and the Broncos at +158. Using the Bitcoin-friendly bookie, Chiefs bettors risk $13 less for the same $100 profit while Broncos backers stand to win an extra $8 on their $100 wager. This is a big difference and another reason for sports bettors to place their wagers at crypto betting sites.
Let’s face it. The use of cryptocurrency is steadily trending up, and it’s projected to keep rising. In 2018, the crypto market had a value of over USD $856 billion. Many expect that number to increase by a compound annual growth rate of about 11.9% through 2024. At the same time, experts predict that the global online gambling market, which was worth nearly USD $47 billion in 2017, will continue to grow at a CAGR of 11.4% over the same stretch of time. As the popularity of cryptocurrency and online gambling continue to grow and become further intertwined, crypto betting looks poised to continue its upward trajectory.