Crypto casinos pull in $80 billion despite bans

Online gambling is booming, especially when crypto is involved.

Online gambling is booming, especially when crypto is involved. According to a new report from analytics firm Yield Sec, so-called crypto casinos pulled in about $80 billion in revenue in 2024, a multiple of the previous year. Notable, since in many countries this type of gambling is banned. Yet these platforms know how to cleverly sidestep that ban. How is that possible and what does the law say?

An apparently normal casino, but with crypto

At first glance, crypto casinos look a lot like ordinary online gambling sites. They offer classics like poker, blackjack, and roulette. The difference? Instead of euros or dollars, bets are placed with cryptocurrency. Users can also speculate on price movements. Any winnings are paid out in crypto as well, of course, if you hit a win.

But the risk is high. Not only because of the nature of gambling itself, but also due to crypto’s extreme price swings. What looks like a win today can be a loss tomorrow. Many gamblers fall into a vicious cycle of losses and top-ups, piling up debt. And since most platforms operate in a legal gray area, there’s little oversight.

The house always wins, and that proves lucrative

Since the COVID-19 pandemic, crypto casinos have surged in popularity at a rapid pace. Big names like Stake, Rollbit, and Roobet dominate the field. Their combined gross gaming revenue hit a staggering $81.4 billion in 2024, according to the Financial Times based on Yield Sec data. By comparison, total gambling revenues in Europe last year were €123 billion, with online gambling accounting for about 40%. Crypto casinos are now serious competition for traditional gaming giants.

Illegal? No problem as long as you have a VPN

In countries like the U.S., China, the U.K. and the EU, crypto casinos are banned. Yet those rules pose little obstacle. With a VPN you can virtually be in Curaçao, Gibraltar, or the Isle of Man—places where many of these platforms are based and where crypto gambling is legal. Regulators are powerless against these digital hideouts.

According to Yield Sec, there are now tens of thousands of crypto casinos worldwide, with millions of players. Average deposits are ten times higher than at regulated providers.

KYC, influencers, and the illusion of anonymity

While platforms like Stake claim to strictly check age and identity (KYC), field research shows those controls are often easy to bypass. Minors are actively lured to these gambling sites via influencers on TikTok and Instagram. Because crypto payments are hard to trace, they also enable anonymous deposits, increasing the risk of money laundering.

The government wants to crack down, but how?

In the Netherlands, online casinos are basically illegal. For crypto casinos, a license is almost out of reach: bets and payouts must be in euros only, and anonymous payment methods are explicitly banned for gambling. What this means concretely for crypto casinos remains hazy, but one thing is clear: action is urgently needed—these digital gambling houses keep growing, regardless of the rules.