Crypto Gaming Struggles to Onboard New Users

As the cryptocurrency sector continues evolving, an emerging trend reveals that crypto gambling platforms could face significant challenges in attracting new customers, particularly those with existing digital wallets. According to recent data by Web3 marketing firm Addressable, crypto gambling ads are among the most expensive user acquisition methods in the decentralized space.

Blockchain Casinos Face Challenges Attracting Crypto-Savvy Users

Addressable co-founder Asaf Nadler published a recent report on onboarding costs in the crypto space, focusing on CPW (Cost Per Wallet), a metric measuring how much it costs to attract users with an existing crypto wallet installed in their browser rather than just web traffic or clicks. This approach examines how individuals already interested in crypto respond to marketing materials, as opposed to complete newcomers.

Addressable’s data revealed that the median CPW for crypto gaming and gambling campaigns was a substantial $8.74, with a lower quartile of $3.40, placing these sectors as one of the most costly across the Web3 landscape. Nadler speculated that this discrepancy could be due to a combination of factors, leading to crypto-savvy users refusing to engage with this vertical.

If Web3 gaming is truly ‘inevitable,’ we need to find a more powerful UA engine to make it as sustainable as in Web2.

Asaf Nadler, Addressable co-founder

Speaking for Cointelegraph, Nadler noted that for Web3 gaming to achieve such levels of sustainability as in traditional (Web2) gambling ecosystems, companies must foster an enhanced user acquisition pipeline. For comparison, the median CPW for DeFi (Decentralized Finance) and CeFi (Centralized Finance) platforms is just $2.79, with some campaigns acquiring users for as little as $0.10.

The Broader Crypto-Gambling Sector Retains Steady Growth

Despite such challenges, cryptocurrency betting platforms continue to enjoy significant investments and expand operations. Blockchain-based casino and sportsbook Winna.com recently raised $15 million in seed funding, demonstrating robust interest in the sector’s long-term prospects. Winna CEO Paul Martens emphasized the benefits of crypto, like anonymity, privacy, and global accessibility, as key advantages over traditional platforms.

Even traditional gaming operators are venturing into the crypto space. Choctaw Casino & Resorts, a leading US gambling brand, announced it would allow customers to fund their gaming sessions using cryptocurrency, marking an industry first for the US casino sector. The operator hopes to create a seamless bridge between crypto wallets and casino floors, allowing users to exchange digital assets for chips in minutes without the hassle of traditional banks.

Despite these advancements, the crypto sector still contends with image and regulatory challenges. High-profile scandals have dented crypto’s reputation, while gambling regulators remain wary due to crypto’s anonymity and borderless nature. As a result, platforms must walk a tightrope between leveraging the advantages of decentralization and demonstrating regulatory compliance.