Crypto & iGaming: Is There A Connection?
The crypto and iGaming industries are unique. Often times both industries are compared to each other. And rightly so. Putting aside the gambling component, the crypto and iGaming worlds have many things in common. In recent times both industries have found a few connections: a growing interest among consumers, gambling with cryptocurrencies, and the rise in regulations.
Growing Interest
With technology making investments and gaming more easily accessible, more and more consumers are becoming interested in the crypto and iGaming industries. According to Bankrate.com, about 59.1 million Americans owned some form of cryptocurrency in 2021. Similarly, according to a Straits Research report, it is estimated that the online gambling market size will reach USD 153 billion by 2030, growing at a compound annual growth rate of 11.7% during the forecast period of 2022–2030. There is an active and growing player base linked to iGaming in new markets all over the world which has resulted in the launch of several iGaming and sports betting platforms. Similarly, many crypto exchanges have launched all over the world to meet consumer demand. According to CoinGecko, there are about 542 crypto exchanges worldwide. This is a clear indication that there is an increased interest in the two industries among consumers.
Rise In Regulations
Due to the growing consumer interest in crypto and iGaming, both industries have caught the interest of government parties looking to regulate crypto and iGaming. Earlier this year, the Canadian province of Ontario launched its regulated iGaming market. With rising consumer demand, a regulated iGaming market ensures safety and security of the players. In the first two-quarters of the market launch, not only was there an increase in player activity but a significant amount of operators launched their platforms in the province. Similarly, it was reported by TheDalesReport that the Canadian government is going to begin consultation on cryptocurrencies, stablecoins, and central bank digital currency. This is due to consumer interest in crypto and the rise in digital currencies. By looking at the results from the regulated iGaming market, it wouldn’t be a surprise to see strong crypto market growth in Canada subsequent to regulation.
Merged Together
Recently, the crypto and iGaming industries have connected with each other through crypto gambling. Platforms such as Stake have risen in popularity due to their affiliations with celebrities but most importantly, they provide a platform for players to gamble using a variety of cryptocurrencies. Cryptocurrencies offer many benefits to players and operators, incenting online gaming operators to incorporate cryptocurrencies such as Bitcoin and Ethereum into their platforms. According to Blokt, some major plus points of cryptocurrencies in online gaming include bonuses, transparency, and anonymity. But this merger does face many hurdles such as transaction speeds, regulations, and value fluctuation. These obstacles will take time to tackle as crypto and blockchain are a new and evolving technology. But for now, there is a strong link between the two industries, and consumer demand is there.
Conclusion
The crypto and iGaming markets are still relatively new, but their growth is rising day by day. Both industries have plenty of similarities as they are technology-driven. As every day passes, more and more consumers are showing a strong interest in both industries, resulting in crypto exchanges increasing worldwide, more regulation in both industries, and collaboration in the form of crypto gambling.
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