Will crypto casinos become dominant in 2025?

Within the broad industry of games, both video games and casinos dominate. But while the former gets most of the attention when it comes to innovation, casinos have been in no shortage of ideas over the past decade.

One of the most significant innovations has been the introduction of crypto casinos. Although they’ve been relatively underground, could 2025 be the year they finally take over?

Why players are turning to crypto casinos

There are quite a few factors driving the rise of crypto casinos, but the most obvious one is that there are many enthusiasts around. And, for those who strongly believe in crypto’s future, they look for ways to incorporate it into daily life: buying groceries, investing, and this instance, their experiences with iGaming. 

Of course, there are more practical reasons too that capture the attention of non-enthusiasts. Transaction efficiency is one draw, with fast, cheap and transparent deposits and withdrawals. Transparency makes it secure, because you can track your transactions on the public ledger. 

But perhaps most of all, crypto can be anonymous, depending on how you use it. The best crypto casinos often ask for less personal data (in part because they’re often located abroad), meaning users get more privacy and avoid using their bank accounts.

Market momentum - growth by the numbers

So far, we can see the crypto gambling market growing. Its value went from $50 million (2019) to well over $250 million just a few years later, with an annual growth rate of around 40%. The broader gambling market did not see this much growth, meaning crypto gambling is gaining market share. The likes of FaZe clan are even partnering with crypto casinos.

However, this is still a drop in the bucket of the broader market. Unless there is a further increase in CAGR, this could take decades to reach - 2025 dominance is out of the question. Though, for many crypto casino enthusiasts, this isn’t a bad thing, as they’re unsure whether they want the (regulatory) spotlight on themselves.

Betting volumes reflect this dynamism. Crypto bets nearly doubled year-over-year in the first half of 2023. Projections are forecasting more growth, in particular because of President Trump’s backing of crypto as a legitimate currency reserve.

Innovations shaping the future

Technological advancements will likely play a role in any increase in growth. The use of stablecoins to avoid currency risk volatility is an important norm that’s being established, but it’s the innovations within DeFi that may propel crypto. Once more financial products and services are available and barriers to crypto are diminished, it will become more commonplace. Of course, there are mini-ecosystems that develop within specific video games, but a broader metaverse or NFT-driven ecosystem could really drive this forward. But, it’s difficult to picture exactly what this may look like beyond using NFTs to transfer digital assets between casinos, games and a digital environment.

Hurdles and the verdict for 2025

Despite the strong momentum of crypto casinos, we can clearly see the market size paling in comparison. In order for it to become mainstream, there will need to be compromises around AML and KYC regulations, else they will remain on the fringes. But, that comes at a cost of privacy, so the market may be split into two. Ultimately, though, crypto is becoming more legitimized each year, and with the rise of stablecoins, crypto is no longer seen as high risk for daily activities.