Over the past decade, cryptocurrency has radically transformed many industries, including finance, investing and even online gambling. The anonymous, decentralized and digital nature of crypto has appealed to many aspects of the internet economy, enabling new business models and innovations. As crypto has grown into a major asset class and payment method, online casinos have been some of the earliest and most eager adopters.
Influx of Crypto as a Payment Method
In the early 2010s, Bitcoin and other cryptocurrencies were relatively unknown. There were few places you could actually spend your crypto. However several online casinos saw the potential of Bitcoin and started accepting it as a payment method. These crypto casinos allowed players to quickly deposit and withdraw funds without relying on traditional payment processors.
As cryptocurrency gained more mainstream traction in the mid-2010s, more online gambling sites began supporting deposits and withdrawals in top coins like Bitcoin, Ethereum, Tether and Bitcoin Cash. Crypto offered players censorship-resistance, meaning no single entity could block payments. Crypto transactions also avoided the often-high fees of credit cards and e-wallets.
By 2022, cryptocurrency became a standard payment method across most major online casinos. Fans of Spinago pokies could easily move money from leading crypto exchanges and wallets onto gambling sites. Top platforms like FortuneJack and BitStarz led the way when it came to adopting the most cutting-edge coins.
The table below shows the dramatic increase in crypto gambling volume in recent years:
| Year | Total Crypto Gambling Volume | Increase |
| 2017 | $4.9 billion | +1,000% |
| 2018 | $5.7 billion | +16% |
| 2019 | $10.5 billion | +84% |
| 2020 | $17.2 billion | +64% |
| 2021 | $32.4 billion | +88% |
Rise of Provably Fair Crypto Games
One innovation that came from crypto casinos was provably fair gambling. Provably fair games derive their random numbers from blockchain transactions, meaning players can independently verify game outcomes were truly random and not manipulated by the casino.
Crypto casinos offered dice, crash games, video poker, slots and more with built-in provably fair systems. Players could check “proof” strings before playing a game, then cross-reference after outcomes to see the game was legit. Leading crypto game providers like Endorphina and Betsoft pioneered provably fair as a new standard.
Many traditional online casinos lacked transparency, so provably fair crypto games offered a new level of security and fairness. The technology used encryption, hashing and commitment schemes to essentially “show its work” and prove to players games were truly random.
As crypto casinos enabled new technical possibilities like provably fair, traditional casinos were somewhat left behind technologically. Provably fair became a must-have feature for any reputable crypto gambling site.
Emergence of Decentralized Crypto Casinos
Decentralization was woven into the fabric of cryptocurrency from the start. Bitcoin and other blockchain networks had no centralized control, rather all transactions were confirmed via a distributed global network of nodes.
In the mid 2010s, developers began experimenting with decentralized applications (dApps) to bring more use cases to blockchain. And online gambling seemed a natural fit.
Decentralized crypto casinos built all gambling operations directly into smart contracts on networks like Ethereum and Tron. Games automatically paid out to winners based on code, no human intervention required. Player funds were held in secure crypto wallets rather than accounts, for enhanced security.
A key innovation of decentralized casinos was allowing players themselves to act as the “house”. Players could bankroll games, set odds and earn a cut of all wagers. Soon platforms like EarnBet and CasinoFair emerged, delivering a provably fair but also decentralized online gambling experience.
Rise of Crypto Gambling Influencers
As crypto extended its reach into casinos this past decade, a new type of gambling influencer emerged: crypto gamblers. These were players who recorded videos and live streams of high stakes crypto bets on slots, crash games and more. They pulled in millions of views across Twitch, YouTube and TikTok.
Names like CryptoCobain, Pokerface and DegenGambles became famous in the crypto world for their bravado and risky bets worth hundreds of thousands of dollars in Bitcoin and Ethereum. They gave an inside look at the fast-paced, high stakes action available at crypto casinos.
These influencers benefited from cryptocurrency’s high volatility and anonymity. Wild price swings let gamblers quickly turn crypto profits into more crypto gambling funds. And crypto allowed essentially pseudonymous play, letting gamblers avoid some public scrutiny.
The popularity of crypto gambling influencers further cemented the deep ties between online casinos and cryptocurrency over the past several years. Crypto gambling became a spectacle, as much as a pastime for enthusiasts of both.
Crypto Casino Innovation
While crypto has already profoundly reshaped online gambling, more innovation in this sector is likely still to come. Potential areas for development include:
- Next-gen provably fair with live dealer games via blockchain oracles
- Fully decentralized sportsbooks for peer-to-peer betting
- Token-based loyalty programs that span across casino platforms
- Professional gamblers launching their own casinos in the metaverse
- Integrating lightning network or other L2 solutions for faster crypto gambling
- National governments issuing central bank digital currency (CBDC) to regulate crypto casinos
As crypto casinos continue innovating, players can expect even more features that leverage the unique strengths of cryptocurrency and blockchain technology. Judging by the tremendous progress over the past decade, crypto gambling still appears to be just getting started when it comes to revolutionizing online casinos.
