In 2024, crypto gambling generated over $81.4 billion in revenue, surging fivefold from 2022. This growth persists despite the illegality of crypto casinos in numerous jurisdictions, which remain accessible via VPNs. Stake, a major player, claims significant market share amidst ongoing regulatory scrutiny, including over 280 cease-and-desist notices in the UK. The sector is further complicated by allegations against a former Wall Street executive for fraud in a crypto casino venture.
New findings indicate a significant surge in crypto gambling, generating a remarkable $81.4 billion in gross gaming revenue in 2024, representing a fivefold increase from 2022 according to YieldSec data. This growth occurs despite the majority of jurisdictions deeming crypto gambling illegal, thus raising concerns about regulatory adherence and consumer protection.
Crypto casinos, including Stake, Rollbit, and Roobet, are operating successfully from jurisdictions such as Curaçao and Malta, where crypto gambling is permitted. Stake reportedly contributes to around 4% of all Bitcoin transactions while boasting 25 million users who have placed 300 billion bets since its establishment in 2017.
A spokesperson for Stake asserted that their operations are compliant with local laws and are fully licensed; however, a Financial Times test revealed the potential to sign up from regions such as London using a VPN without immediate identity verification.
Since April 2024, the UK’s Gambling Commission has issued over 280 cease-and-desist notices to operators promoting crypto as a payment method. These illicit practices highlight the challenges regulators face in overseeing a rapidly evolving and often opaque sector.
The complexities surrounding crypto casinos further intensify. In mid-April 2024, allegations emerged against Richard Kim, a former Wall Street executive, for defrauding investors of over $4 million related to his blockchain casino, ZeroEdge. Launched in March 2024, the platform raised $4.3 million but faced scrutiny for misappropriation of funds, with Kim now under federal investigation for wire and securities fraud due to his actions.
