CRYPTO CASINO
regulators but from commercial partners wary of collateral damage.
– has evolved into a serious payments alternative even among licensed operators. Today, many iGaming companies either accept crypto directly or partner with custodians and payment firms that allow seamless conversion of crypto to fiat. “The regulated sector’s fiat-only stance is creating a two-tier market: ‘crypto-convenience’ offshore, ‘compliance friction’ onshore,” say the Wiggin pair in their article. They point out that this disparity combined with the ease with which players can access offshore markets means a wholesale rejection of crypto-based payment methods is increasingly unsustainable. Instead, they suggest that “crypto can now realistically be viewed within the same risk-management continuum as other payment systems: requiring appropriate safeguards, tailored controls and regulatory oversight, but not outright prohibition.” They also point out that, in the UK at least, the regulator is obliged by the Gambling Act to adopt a permissive approach. Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) Regulation has laid a concrete foundation for companies to operate across borders with defined AML and KYC expectations. This clarity is especially critical in the iGaming world, which is itself under intense regulatory scrutiny. Elsewhere, Asia, and Latin America have begun rolling out licensing frameworks and compliance standards tailored for digital assets. The UK Gambling Commission last issued guidance in this area in Q1 of 2025 and gave no hint of being ready to embrace the blockchain. There is no doubt that politics will play a part too but markets with a desire to protect their consumers, defend their tax base and support their licensed gambling industry will face pressure to act before it’s too late. Chris Elliott will be chairing a panel on cryptocasino at the IMGL autumn conference in Lisbon. Discover details and ticketing at imgl.org/events/imgl-2025-autumn-conference
A way forward, or if you can’t beat them… The apparently unstoppable surge in crypto casino means lost taxes and unprotected consumers for jurisdictions struggling to retain players in licensed channels. But there is one solution that is open to them: bringing crypto casino onshore. Crypto 2.0 is significantly different from last time around. During and immediately after Covid, sharp rises in various cryptocurrencies drew in amateurs tempted to try and ride the wave. Members of the online “meme stock” community saw crypto as a one-way ticket to the kind of wealth not available to them through conventional investments or jobs. Crypto boomed not for its inherent value or function, but because a fear of missing out led those with money burning a hole in their pockets to buy in. This time, there are reasons to think cryptocurrency and the function can provides the gambler are likely to be increasingly attractive to a particular demographic. Wiggin’s Elliott and Bagnall quote a 2023 YouGov survey that 15 percent of UK gamblers were interested in placing crypto bets with a third of these citing speed of settlement and weekend withdrawals as key reasons. They also point to other benefits including lower fees and less likelihood of bank declines. This group is predominantly male, aged 18-34 and London-based – a demographic with one of the highest gambling participation rates and one that is much more likely to hold crypto already. Looked at from this perspective, the connection between crypto and iGaming was almost inevitable. Both industries are digital-first, attract a tech- savvy user base, and have a historical appetite for disruption. What began as a niche offering – Bitcoin casinos operating outside the mainstream
PHIL SAVAGE Head of Publications and European Affairs, IMGL For information contact: phil@IMGL.org
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IMGL MAGAZINE | JUNE 2025
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