Crypto Gambling Sites Rake in Over $80B Thanks to Global Legal Gaps

Online casinos that use cryptocurrencies have seen a huge jump in business, with worldwide betting profits hitting $81.4 billion in 2024, five times more than the year before. This growth happens even with lots of rules in place, as millions of players find ways around blocks to use offshore sites that are not regulated.

Stake and Rivals Grow as VPNs and Loopholes Fuel Access

Numbers from Yield Sec, a company that looks at online gambling trends, show how big the industry has gotten. Even though betting with cryptocurrencies is not allowed or is controlled in big jurisdictions like the US, China, and the European Union, many people still access these sites by using VPNs, copy websites, or services that send them to the right place.

Experts in the field say the easy access to these illegal platforms is causing concerns, as reported by the Financial Times. Former problem gamblers and campaigners point out that you can find guides all over the internet on how to get around location blocks. Often, social media stars share these tips. Some even say people are buying and selling crypto gambling accounts on online markets.

A lot of these platforms set up shop in places that welcome cryptocurrencies, like Curaçao, Malta, and Gibraltar. Big names like Stake, Roobet, and Rollbit now go head-to-head with the old betting giants. Take Stake, for instance. They said they made $4.7 billion in gross gaming revenue in 2024, which is a big jump from the year before. The company also claims its users have placed over 300 billion bets since it started in 2017.

Stake claims it follows all relevant rules and runs thorough identity checks. However, when Financial Times reporters tested the system using VPNs, they found they could open accounts with little verification. The platform says it bans users who try to get around regional limits, but this rule does not seem to apply all the time. A spokesperson for Stake responded to the claim by the Financial Times by saying:

ID is required before anyone can use the platform, it’s not possible to play without completing that step. If false information is used to fraudulently access the site, the account is flagged and banned. Additional measures are in place to detect and block this kind of activity.

Stake’s spokesperson

Calls Grow for Regulation as Crypto Casinos Escape Oversight

Crypto casinos do not just draw people in because they are easy to use. They also lack the usual safety measures. Many of these sites do not put caps on spending or check IDs, unlike gambling sites that follow the rules. People fighting against gambling say this makes crypto casinos tempting for kids and people living in places where gambling is banned.

The volatility of cryptocurrencies makes things even trickier, turning each wager into a bet on both game results and token worth. Some players say they have gotten stuck in loops of trying to win back losses when crypto prices drop, or thinking they have won more than they have when prices go up.

Trying to stop these operations is not easy. In the UK and the US, people can use VPNs to visit these sites even though the sites themselves might be breaking local laws. It is hard to enforce the rules, and experts say watchdogs often lack the tools to keep tabs on offshore companies.

As crypto gambling keeps growing, more people are asking for stronger checks and stricter rules. However, with the current gaps in regulation, the worldwide market for digital betting looks like it will keep getting bigger.