Crypto casinos have seen explosive growth in recent years, with new data revealing that gambling platforms using cryptocurrency generated a staggering $81.4 billion in gross gaming revenue (GGR) in 2024. This is a fivefold increase compared to 2022, highlighting the rising popularity of unregulated offshore gambling sites, despite being illegal in most countries.
According to research from anti-online-crime platform Yield Sec, crypto gambling platforms are now operating on a scale that rivals traditional betting groups. Major platforms such as Stake, Rollbit, and Roobet, which are based in jurisdictions where crypto gambling is legal, have seen their user bases and revenues soar. Stake alone is reported to account for up to 4% of all Bitcoin transactions globally, with 25 million users and $4.7 billion in GGR in 2024, an 80% increase from the previous year.
These platforms, however, remain easily accessible to users in countries where online gambling is banned or restricted, such as the US, UK, China, and the EU. Many users bypass geo-blocks using VPNs, mirror links, or URL redirection, allowing them to gamble on these unregulated platforms without facing local legal consequences. “Consumers know this,” said Jordan Lea, a former problem gambler who now campaigns against the industry’s harms, referring to the widespread availability of guides and influencers encouraging users to bypass geo-blocking.
Crypto casinos operate in regions like Curaçao, Malta, Gibraltar, and the Isle of Man, where the regulations are more lenient, allowing them to function without the constraints faced by traditional gambling companies. As a result, these platforms have gained significant traction, particularly among gamblers seeking alternatives to regulated sites.
Stake, for instance, does not consider itself a “crypto casino” and claims that over half of its transactions are conducted using traditional currencies. Despite this, the platform remains a significant competitor to some of the largest names in traditional gambling. Major companies like Entain, Flutter, and Bet365 reported revenues of $5 billion, $14 billion, and £3.7 billion, respectively, in 2024, with crypto gambling now emerging as a formidable player in the global gambling market.
Yet, these platforms’ rapid growth has raised concerns, especially regarding their regulatory status and the potential risks for users. While crypto gambling sites are not necessarily illegal to access via a VPN in markets like the UK and the US, experts argue that offshore operators may still violate laws if they “provide facilities” for UK residents to gamble. The UK Gambling Commission, for instance, has taken steps to combat unlicensed platforms, issuing cease-and-desist notices to providers accepting cryptocurrency as a deposit method.
The lack of proper know-your-customer (KYC) and affordability checks on many crypto casino platforms makes them particularly appealing to underage and problem gamblers, who can easily circumvent the regulations that protect users on traditional betting sites. Rob Minnick, a campaigner against crypto gambling and a former underage crypto gambler, pointed out that the volatility of cryptocurrency only adds to the risks, with gamblers often caught in a cycle of chasing losses when the value of their bets fluctuates.
The industry’s reliance on influencers to promote crypto gambling platforms has also raised alarm. Many influencers push users towards crypto casinos by offering instructions on how to bypass geo-blocking and promoting the idea that these sites offer “fairer” odds than regulated gambling platforms. This has led to concerns that younger, impressionable audiences are being misled into risky behavior.
The Financial Times reported that despite claims by platforms like Stake to operate within legal frameworks and adhere to anti-money laundering procedures, users in regions like the UK can still create accounts using VPNs without rigorous checks, raising questions about the effectiveness of regulatory oversight in this space.
In the UK, the Gambling Commission has warned football clubs, including Everton, which has a sponsorship deal with Stake, about the risks associated with promoting unlicensed gambling platforms. In response, Stake closed its UK non-crypto platform after the Gambling Commission launched an investigation into one of its social media promotions.
With billions of dollars now flowing through crypto casinos, the sector’s growth is raising significant regulatory and social responsibility concerns. As platforms continue to expand globally, the challenge of managing this rapidly growing market will only intensify, with calls for stronger regulation and greater transparency gaining momentum.
