Regulation
Countries with the greatest potential for cryptocurrency gambling
The global iGaming market will be worth more than $70 billion by the end of 2024. This figure has increased from around $37 billion before the pandemic and is expected to reach $205.6 billion in 2030.
Most of this revenue comes from casino gambling and fiat currency betting. However, interest in cryptocurrency gambling is on the rise. Interest in online casinos that allow the use of Bitcoin has quadrupled between 2019 and 2022, and current estimates suggest the market is worth around $250 million.
This figure is only a small fraction of the overall value of the iGaming market, but it could increase as cryptocurrencies become more widely accepted and regulated. By examining the current situation regarding crypto casinos, we discover which countries may accept and regulate them in the future.
The Isle of Man was one of the first places to create legislation to regulate cryptocurrencies. The island also has a recognized online gambling sector and provides operators with licenses, which include the use of cryptocurrencies. These licenses are held by some of the most crypto-friendly casinos available globally.
This level of acceptance of cryptocurrency gambling is unusual at the moment, although there is potential for other countries to embrace cryptocurrency gambling sites in the future. Countries such as the US, UK and Canada do not currently allow operators to launch cryptocurrency casinos. However, the use of cryptocurrencies is permitted.
The cryptocurrency landscape changes regularly. For example, in France, the National Assembly recently passed legislation which has become known as the “Sorare Law”. This law establishes a framework for crypto games that were previously classified as a form of gambling. It separates these games from gambling. The games are known as Jonum or “games with monetizable digital objects”. Winnings from them can only be stored as digital assets and do not need to be converted into fiat currency.
While this crypto gambling legislation may seem like good news for crypto gambling in France, it is not yet the case. Only sports betting, lottery, and poker are legal at online betting sites in France, while casinos and spread betting are not allowed. For those betting activities that are allowed at regulated casinos in France, there is no regulation for the use of cryptocurrencies. It is also worth noting that the Autorite Nationale des Jeux (ANJ), which regulates gambling in France, regularly removes unauthorized gambling sites. Therefore, the potential for crypto gambling in France is not as high as in other countries such as the United States, the United Kingdom, and Canada.
In the UK, online casinos are legal and regulated. In the US and Canada, this is only true for some states and provinces. All three countries are in the process of regulating cryptocurrencies and the landscape remains unclear, meaning that the use of cryptocurrencies is not illegal.
The situation regarding crypto casinos is equally unclear at this time. Although the operation of these casinos is prohibited in each of these countries, there is no regulation that prevents players from using offshore casinos.
If cryptocurrencies were fully regulated in the UK, US and Canada, the outlook for cryptocurrency gambling could improve further. However, if regulation limited the use of cryptocurrencies, the effect could be the opposite.
In other parts of the world, countries that have not outlawed the use of cryptocurrencies could also see cryptocurrency gambling expand in the future. In Africa, these countries include Kenya, Lesotho, and Gabon. In Latin America, most countries have yet to make a final decision regarding the use of cryptocurrencies, with the exception of countries such as Colombia and Brazil, which have banned the use of cryptocurrencies for gambling.
Australia is another country that has chosen to ban cryptocurrency gambling. Like other countries that have gone down the same route, their reasoning is that cryptocurrencies are difficult to trace and facilitate money laundering. However, this stance will change as more countries regulate cryptocurrencies.
As this happens, it is more likely that countries will open their doors to cryptocurrency gambling. This is especially true given the interest in cryptocurrency gambling, as players look for options that prioritize privacy, data security, and fast transactions.
This regulation is already starting to happen. The EU has introduced the Markets in Crypto-Assets Act (MiCA) regulatory requirements for stablecoin issuers. Regulation of the most popular cryptocurrencies in crypto gambling, Bitcoin and Ethereum, is still a ways off. However, it will happen as the appetite for their use continues to grow.
Currently, none of the major countries, such as the United States, the United Kingdom, and Canada, allow operators to provide cryptocurrency gambling services within their borders. However, these countries still offer potential for cryptocurrency gambling as players can use offshore sites. There are no laws specifically prohibiting the use of cryptocurrency for gambling, as there are in Australia, Colombia, and Brazil. There is also potential for cryptocurrency gambling to grow in African and Latin American countries where there are no laws in place.
Since cryptocurrencies are regulated all over the world, this could have a positive effect on cryptocurrency gambling, as cryptocurrency becomes more transparent and trustworthy. Only time will tell if this will happen.