CRYPTO CASINO
The rise and rise of crypto casino CRYPTO CASINO IS BACK (IF IT EVER WENT AWAY) AND THIS TIME IT COULD BE HERE TO STAY AS PHIL SAVAGE REPORTS
T he world of cryptocurrency has witnessed more than its fair share of booms and busts in its short history (Bitcoin was only launched in 2009). As early as 2011, Bitcoin lost 99 percent of its value in a single day. It lost over 50 percent of its value on six other occasions since then but it is now considered a safe haven compared in the crypto space. In 2022, cryptocurrency exchange FTX was valued at US$18bn when it filed for bankruptcy with markets taking a scythe to the entire sector as a consequence. The difference in 2022 was that crypto had gone mainstream meaning a lot more regular “investors” lost a great deal of money. It is perhaps surprising, given the history, but crypto is back and this time it looks like it’s here to stay. Wiggin’s Chris Elliott and Marcus Bagnall argued in a recent piece for Lexology that crypto has grown up and gaming regulators ought to look again at legalizing it. 1 Many of the issues around price volatility,
anonymity, fraud and open loops have been effectively de- risked through better regulation and technological advances, they say, continuing: “While crypto must still be treated as a higher AML risk (consistent with Financial Action Task Force (FATF) and Gambling Commission risk ratings), the tools and analytics available can help to significantly mitigate compliance risks – an important factor given that much of AML compliance already operates by reference to a risk-based approach.” There is another big reason why regulators should look again at crypto: it’s already here, and it’s in danger of eating their lunch. Data from Yield Sec, a technical intelligence platform for online marketplaces and quoted in the Financial Times, shows crypto casino takings have soared to a point where they are now at a similar scale to more familiar players like Entain and Flutter. Citing a five-fold increase since 2022,
1 Crypto and gambling: Why regulation - not de facto prohibition - should shape the future of payment options - https://www.lexology.com/ library/detail.aspx?g=7c9df7c6-a564-41f8-bc25-020912d20d8e
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IMGL MAGAZINE | JUNE 2025
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