The crypto gambling landscape is witnessing explosive expansion, generating significant revenue despite facing widespread legal restrictions.
Industry analysis highlighted by major financial publications reveals that crypto-based wagering platforms pulled in over $81.4 billion in gross gaming revenue in the past year. This figure marks a staggering fivefold jump compared to just two years prior, underscoring the sector’s rapid ascent.
While operating illegally in numerous jurisdictions, these digital asset casinos often remain accessible to users employing VPNs or other methods to bypass geo-restrictions. Platforms like Stake, Rollbit, and Roobet typically operate from regions with more permissive regulations, such as Curaçao or Malta.
Leading operator Stake, for instance, reports processing a significant portion of global Bitcoin (BTC) transactions, claiming 25 million users and 300 billion bets since launching in 2017. Stake representatives assert full compliance with applicable laws, though independent tests have shown accounts could potentially be opened from restricted locations like London using VPNs, initially bypassing identity checks.
However, regulatory bodies are increasing their scrutiny. The British Gambling Commission, for example, issued over 280 cease-and-desist notices since April 2024 to entities facilitating crypto deposits for gambling within the U.K.
This legally ambiguous environment also creates opportunities for bad actors. A prominent case involves Richard Kim, a former Wall Street executive, accused of defrauding investors of over $4 million through his blockchain casino venture, ZeroEdge.
Launched in early 2024, ZeroEdge attracted $4.3 million via seed funding and token sales by promising innovative on-chain gaming. Prosecutors allege Kim misappropriated these funds for personal enrichment. He now faces federal wire and securities fraud charges, highlighting the inherent risks within this burgeoning, yet under-regulated, crypto niche.