Crypto Casinos See Surging Revenues in Spite of Widespread Bans, Laundering Risks
A new trend is emerging in the cryptocurrency space that is garnering the attention of international regulators and law enforcement due to its propensity to contribute cross-border illicit financial activity. In 2024, “crypto casinos” truly burst onto the scene, generating a staggering $81.4 billion in gross gaming revenue (GGR), a fivefold increase compared to figures collected from just two years prior, this according to data from anti-online-crime platform Yield Sec.2 Crypto casinos traditionally mirror the now über-popular traditional online gambling and sports betting outlets with the exception that they strictly utilize cryptocurrencies to fuel their activities as opposed to cash. Much like the crypto-realm in itself, these platforms have grown exponentially over recent years in spite of staunch legislation opposing them. They also offer similar advantages to traditional crypto transactions as compared to their fiat-based counterparts – including increased anonymity and more rapid and secure transactions than those utilizing traditional banking accounts by operating on decentralized networks using Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and even privacy-focused coins like Monero (XMR).1 However, analysts have begun to point to the increased risks of financial crime, namely money laundering, that can occur through crypto-casinos, with many major jurisdictions like the United States, United Kingdom, European Union, and China seeking to ban their utilization altogether.
All told, multiple factors have fueled the surge in success of these outlets in spite of the opposition they face, including the ease of bypassing geographic-blocking restrictions by country of incorporation coupled with relatively lax regulatory oversight seen to date. Given that there are a growing number of incorporated jurisdictions where crypto gambling remains legal, analysts expect these figures to continue to grow at rapid rates over years to come, raising additional concerns about other negative developments that may follow, including a potential rise in underage gambling, addiction, and predatory marketing.
Bypassing Bans with VPNs and Pre-Verified Accounts
Despite being illegal in many regions, crypto casinos remain accessible to the masses through roundabout means including use of virtual private networks (VPNs), mirror links, and URL redirection, opening doors for investment from across the globe – including from bad actors and politically exposed persons seeking to circumvent more conventional means of finance. Online guides and social media influencers also have openly shared tutorials on how to circumvent geo-blocking, while “ready-to-gamble” accounts – i.e. pre-verified profiles created by users located in incorporated countries that are generally sold for low dollar amounts to non-residents on wide-reaching platforms like Facebook – enable instant access for users while allowing them to circumvent security screenings seen across both crypto platforms and online gambling sites alike.
A recent article by the Financial Times detailed the anabolic rise of crypto-casino platform Stake, operating out of Curacao, which reported a GGR of $4.7 billion in 2024, an 80% jump from 2022. With 25 million users placing 300 billion collective bets since its 2017 launch, Stake now rivals traditional gambling giants like Entain ($5 billion in revenue) and Flutter ($14 billion) offering similar casino-like games including blackjack and slots, as well as sports betting. All told, Stake processes up to 4% of global Bitcoin transactions – a rather significant figure. While the platform boasts that at least half of its transactions use traditional currencies, its crypto focus has drawn scrutiny, especially after a 2023 hack by North Korea’s Lazarus group siphoned $41 million from the wallets of its user pool. Financial Times also confirmed that representatives from their firm were able to create a Stake account from London using a VPN, adding that they were not asked for proof of address or affordability documentation until after gameplay began, exposing gaps in their supposedly solid know-your-customer (KYC) protocols.1
Regulatory Challenges and Predatory Practices
Further, crypto casinos, often incorporated in permissive jurisdictions like Curaçao, Malta, or Gibraltar, are often able to work around the few regulatory barriers facing them via a number of different means. In the United Kingdom, offshore operators risk penalties for targeting residents, but enforcement of their actions remain weak. The FT reports that “white label” licenses, sold by UK providers licensed by the country’s Gambling Commission to overseas gambling brands, allow platforms like Rollbit to operate without direct oversight – a practice critics call a “piggybacking mechanism.” The UK Gambling Commission has reportedly issued 287 cease-and-desist notices since April 2024, but experts argue regulators often “turn a blind eye offshore companies providing services that domestic companies were forbidden from offering.”1
Opposition for crypto developments in this regard also warn that the absence of spending limits and the lack of robust KYC checks make crypto casinos magnets for under-agers and problem gamblers. The volatile nature of cryptocurrencies adds a “double gamble” to utilizing deregulated gambling sites, amplifying financial risks for unknowing users. The growth of targeted marketing across social media platforms and television has also contributed to elevated risks, specifically for younger audiences, and could pose more significant threats with respect to financial crime moving forward.
Given these developments, the unchecked rise of crypto casinos has sparked widespread calls for reform. Some have argued simply revoking the aforementioned white label licenses could be a step in the right direction towards curbing the reach of offshore casino operators. Others have suggested that mandatory disclosure of both winnings and losses to deter reckless betting should be implemented. Nevertheless as crypto gambling cements its foothold into the mainstream, international regulators face mounting pressure to close the current loopholes present and protect vulnerable users from an industry raking in billions in the shadows, while also protecting the integrity of their respective financial systems as a whole.
Citations
1. Giusti, Marianna. Crypto Casino Takings Top $80bn as Gamblers Bypass Blocks, Financial Times, 21 Apr. 2025.
2. Reguerra, Ezra. “Crypto Casino Revenue Hit $81B in 2024 despite Global Restrictions.” Cointelegraph, Cointelegraph, 21 Apr. 2025.