In the context of an incomplete global regulatory framework, the total profits of cryptocurrency gambling platforms soared to 81.4 billion US dollars in 2024, five times that of the previous year.
Despite strict restrictions or even outright bans by major countries or regions such as the USA, China, and the EU, millions of players globally easily bypass the blockades using VPNs, mirror sites, and redirect services, continuing to bet on these offshore platforms.
According to statistics from Yield Sec, a research company focused on the online gambling industry dynamics, crypto gambling is in a period of rapid expansion. Users break through regional restrictions using various technological means to access a large number of unregulated crypto casinos. Some influencers on social media even openly teach how to circumvent blockades, while some users simply buy and sell gambling accounts on the dark web market. This convenience of illegal access worries many industry observers.
The operations of crypto gambling platforms are mainly concentrated in jurisdictions that are more tolerant of digital assets, such as Curaçao, Malta, and Gibraltar. Emerging platforms such as Stake, Roobet, and Rollbit have already joined the ranks of international gambling industry leaders, confronting traditional gambling giants head-on. For example, Stake claims that its gambling revenue reached 4.7 billion US dollars in 2024, with more than 300 billion bets placed since its launch in 2017.
Although Stake officially states that the platform complies with relevant regulations and implements the KYC (Know Your Customer) process, the Financial Times' test found that users can easily open accounts and place bets almost without identity verification using a VPN. Although the platform claims to ban accounts attempting to bypass geographical restrictions, there are significant loopholes in the enforcement of this rule.
The popularity of crypto casinos is not only due to their convenient operation but also because the regulatory vacuum offers unlimited possibilities. Many platforms do not set betting limits or require identity verification, making them highly attractive to minors and people in gambling-restricted areas. Additionally, the volatility of cryptocurrency prices also makes gambling riskier, with many players increasing their bets when prices fall in hopes of recovering losses, and mistakenly believing they profit more when prices rise, thus falling into a vicious cycle of "betting on top of betting."
The existence of crypto gambling platforms is technically difficult to completely block, and even in the UK and the USA, the widespread use of VPNs still makes these illegal sites accessible. One major challenge for regulatory bodies is the lack of effective tools to track and hold overseas operators accountable.
As the global digital gambling market rapidly expands, calls for stronger regulation are growing louder. However, in the short term, the rapid growth momentum of the crypto gambling sector is likely hard to curb.
