>> October 2024 >> Exploring the surge in cryptocurrency gambling & leveraged trading, with insights into responsible sports sponsorship and the Premier League's quiet wager
Code: CR. M03/LCJ 2023 | Report: Sep/Oct 2024 | Word Count: 30,000
The Crypto Gamble: A Surge in Cryptocurrency Gambling Amid Regulatory Uncertainty
The rapid rise of cryptocurrency gambling is reshaping the digital landscape, with the market's value climbing to $250 million, and forecasts pointing to continued growth. Despite being a small fraction of the $93 billion global iGaming industry, crypto gambling's market share is expanding rapidly. Notably, in Q1 2023 alone, crypto bets surged by 44.6%, accounting for 30% of the total market. This growth is fueled by the adoption of cryptocurrencies by major financial players like PayPal, Mastercard, and Visa.
However, this rapid expansion comes with significant risks and challenges, especially in terms of regulation and sponsorship & advertising. Legal ambiguity surrounds cryptocurrency gambling, as many jurisdictions lack clear legislation regarding crypto assets, leading to a "grey area" in which these operations exist. The UK's Gambling Commission has attempted to impose standards similar to traditional gambling, but enforcement is limited to licensed platforms. Furthermore, cooperation between the Gambling Commission and the Financial Conduct Authority (FCA) is limited, with only a loose framework for collaboration.
1000x Crypto Gambling, Leveraged Trading & Responsible Advertising/Sponsorship in England's Premier League
Rollbit, a crypto gambling platform, has made waves with its $500 million daily wagering volume and offers a staggering 1000x leverage on Bitcoin, Ethereum, and other tokens. As the lead sponsor of Premier League team Southampton, Rollbit uses football as a high-profile platform for international promotions, drawing players from Asia and beyond. The online casino partners with Grace Media in Gibraltar, who handles regulatory compliance through white-label services, allowing Rollbit to focus on growing its user base. The Rollbit Coin (RLB) was one of 2023's crypto success stories, skyrocketing by over 5,000%. Although 1000x leverage isn’t available in the UK, where only its local platform operates, many players bypass restrictions using VPNs and of course, anybody can buy RLB coin from anywhere in the world. Rollbit’s clever marketing, including partnerships with e-sports team FaZe Clan and SSC Napoli, ensures its continued expansion in the high-stakes crypto gambling space, despite the regulatory challenges.
Certified Crypto Payments Engines?
Crypto gambling desperately needs regulation in almost every country where online gambling is legal. Australia probably has the best control on matters at the moment; the Australian House of Representatives recently approved a new bill prohibiting credit cards and cryptocurrency when gambling. Once enacted, crypto casinos will likely block Australian IP addresses. Otherwise, it really is a global free for all - the Wild Wild West of gambling. Gambling IQ discusses one quick fix being discussed would be to make it mandatory for betting operators (including offshore licenced firms), to utilise government certified crypto payments engines, which would have to register with the Financial Conduct Authorities in each country, and not just adhere to gambling regulations. With this in mind, Gambling IQ charts the top 5 cryptocurrency Payments Engines in Gambling. We interview the leading executives and get an exclusive look into how these platforms can also help combat fraud.
Mirroring, White Labels, Silk Road & Crypto Scams
Crypto, Gambling & Rampant Deception - Unregulated and under regulated online & offline casino platforms, though inherently profitable themselves, have been widely exploited for the purpose of concealing and mingling illicit gains with legitimate gambling revenues. While casinos have for years acted as conduits for regional underground banking and money laundering, the proliferation of online gambling platforms, and under-regulated or non-regulated crypto exchanges has changed the game, enabling faster anonymised movement of funds. Transnational organised crime has also evolved rapidly in recent years, characterised profoundly by growth in cross-border and online trafficking of drugs and other commodities using cryptocurrency, with links to certain parts of the online and offline gambling industry. Gambling IQ reveals the top crypto scams and how the payments engines can strike back.
Explore the intersection of digital currencies and gambling like never before, with expert analysis and exclusive coverage to keep you informed and ahead of the curve in this sector. Publication Date in late September, 2024.
