In this analysis, iGaming industry consultant Ron Mendelson, Fast Offshore, explains the factors driving the growth in the crypto gambling sector forward and why launching a crypto casino is a good idea.
The online gambling sector has been evolving and growing in popularity rapidly over the past few years. From its beginnings when the first online casinos were launched in 1994 to today when there are over 5,000 different casinos, the sector has truly transformed. However, as of 2012, the industry got another boost with the launch of the first cryptocurrency casino.
Bringing together the popularity and decentralization of cryptocurrency with the already established iGaming sector brought entrepreneurs a new dimension of opportunity. Today, there are over 600 crypto casinos, with more operators starting up every week. But what is driving the growth in this sector, and is it just due to an increase in the popularity of cryptocurrency?
Increased adoption of crypto
As of 2024, there are an estimated 295 million cryptocurrency users around the world. Not only this, but 33 new cryptocurrencies are created and launched every week, and users of the Binance platform alone transact $14.39 in crypto every day. In 2024, you can by airline tickets, property, groceries, pay fees and fines, shop online, and even make charitable donations using cryptocurrency. While we may not be quite at the stage of total mainstream adoption, the increased cryptocurrency adoption is here to stay and will only increase further in the future. This means that more people have cryptocurrency and are willing to use it for all kinds of transactions, including at online casinos and betting sites.
Higher value of crypto
When we consider Bitcoin alone, its value has increased from zero at its launch to somewhere between $60,000 and $70,000 per coin today. But it is not alone; other key currencies such as ether, Ripple, tether, USD coin, Binance coin, Cardano, and Solana, among others, are also increasing significantly. This higher value of each cryptocurrency coin means people are going to be more interested in investing in them and holding them, as well as using them. While there is still an element of volatility and prices can swing wildly, people are becoming much more confident when it comes to investing in crypto.
Appreciation for decentralisation
Cryptocurrencies are completely decentralised, which means they are not linked, supervised, or controlled by any government or centrally controlled authority such as a bank. They exist entirely outside the formal banking system, meaning users can transact without revealing their full identity or having it confused with their regular income. This gives layers of privacy and anonymity that many enjoy, particularly regarding iGaming. There are many reasons why people may want to remain somewhat anonymous when gambling- perhaps it is frowned on culturally, or they simply do not want their bank, mortgage provider, or family members to know that they enjoy an occasional wager. Decentralisation offers privacy and security, but transacting in fiat currency through the conventional banking system does not.
Knowledge and acceptance
When it was first launched and even for several years after, cryptocurrency used to raise eyebrows. People thought it was a scam or would disappear in a matter of months or years without ever really being successful. It was also plagued by misinformation and disinformation and a lack of access to proper details on how to use it and how it works. But things have changed, and now cryptocurrency information can be found widely online and on reputable news and policy websites. Governments have legislated in favour of it, and it has become much more understood. Of course, there are still some issues with a lack of information or understanding, but this diminishes as time passes. However, increased knowledge and acceptance of crypto have driven growth in the sector, including online gambling.
Access to internet
As of March 2024, there are 5.35 billion internet users around the world, equivalent to 66% of the population. This number has increased in recent years as more and more people have found access to the World Wide Web. It has come about due to several factors: improved and expanded infrastructure, lower connection costs, cheap data costs, more WiFi, the rollout of 4G and 5G, and more competition in the market. This has meant it is easier for lower-income and middle-income individuals to access the Internet, not just those who can afford monthly subscriptions or contracts. This increased access to the internet has boosted traffic to all kinds of providers, including those offering iGaming and betting. Today, people mostly look to the online world for entertainment purposes, including streaming, gaming, and gambling.
Access to devices
In 2024, lower-cost devices such as smartphones, tablets, and computers have also facilitated access to the online world. A decade ago, or even five years ago, such devices were often out of reach financially for large swathes of the population. But today, you can buy second-hand and lower-end brand mobiles and computers at great prices. This has driven forward an increase in the number of people using online services, including iGaming and betting.
Popularity of iGaming in general
iGaming is getting more and more popular in general as it sheds some of its past stigma and enjoys interest from younger generations. Whereas once, games like bingo, lotto, and slots were considered entertainment for older people, today, those in their 20s are also keen players. Thanks to the hard work of online gambling companies and lots of savvy marketing, online gambling has become cool and socially acceptable across all demographics. The addition of other options like eSports betting, live dealer games, and video table games have also helped draw in new crowds and boost player numbers. When combined with the use of cryptocurrency, which has its own diehard followers and fans, the impact is twofold.
Fast Offshore
Fast Offshore has a vast and proven experience in corporate services, iGaming license acquisition, crypto and blockchain business, and payments, spanning three decades (and counting). This puts us in exactly the right position to help you work towards your business goals, leaning on our industry expertise and know-how when it comes to behind-the-scenes. Our team can help you acquire an iGaming license, open bank accounts, negotiate payment agreements, compliance, ongoing maintenance, company structuring, and more with our full A-Z service. We deliver all of our work with professionalism, a smile, and a fast response time. Contact our team today to learn more about launching your own crypto casino!
Original article: https://www.yogonet.com/international/noticias/2024/05/02/71979-why-launching-a-crypto-casino-in-2024-is-a-smart-move
