Digital currency has gone from being a curious specialty to a standard way to deposit at online casinos and sportsbooks throughout the country. What began as a workaround for players in states with strict regulations has grown into a mainstream deposit method used by millions of US bettors. Today we will find out how many people actually use this currency, which coins are most dominant and why adoption keeps going up.
Why Digital Currency Gained Ground
The history of online gambling and traditional banks has never been easy. It was the decline rate of cards, delays in transferring funds and bank blocking of accounts that caused an influx of customers looking for alternative options years ago. With digital currency, some of these issues were solved all at one time.
- Digital currency deposits and withdrawals occur in minutes rather than days
- Since digital currency transactions go through many of the same restrictions as card networks, there will be fewer restrictions when using a digital currency for gaming purposes
- Many players located in jurisdictions with ambiguous laws were able to deposit money into their account using digital currency so they would have no record (paper) of having deposited money into their account via a bank
- Lower transaction fees associated with larger transactions compared to a wire transfer or large card processing transaction
Adoption by the Numbers
One of the most significant differences in the data are by age; younger players were much quicker to adopt digital currency than older players. The primary reason for this is likely because many young players had a digital wallet prior to making their first wager. Older players have been slower to convert to digital currency. They prefer to continue using traditional bank transfers for all wagers even though some platforms support both.
| Metric | Figure |
| Players who have used digital currency to gamble online | 34% |
| Players who consider it their primary deposit method | 19% |
| Players who tried it but reverted to card or bank transfer | 15% |
| Average deposit size for digital currency users | $410 |
| Average deposit size for card or bank transfer users | $180 |
| Players aged 18 to 34 who prefer digital currency | 46% |
| Players aged 55 and up who prefer digital currency | 9% |
Which Coins Actually Get Used
Many users think that Bitcoin is the only “real” cryptocurrency. However, this view changes when they see how slow and expensive Bitcoin transactions are.
Bitcoin has the highest recognition and is usually the first place people try using digital currencies. Many new bettors will choose Bitcoin just because they already own Bitcoin or an exchange will push Bitcoin the most. Some professional bettors may find themselves looking at alternative cryptocurrencies if there is too much traffic in the network. This slows down transaction time and increases fees.
Players who use Ethereum (ETH) often do so because they want to take advantage of decentralized applications or have a reason to own ETH outside of gaming. The speed and low fees on many gaming websites make it a very popular choice after Bitcoin.
The biggest growth area over the last couple of years has been stable coins. Stable coins like USDT and USDC are being widely adopted because their prices remain stable. Players prefer them because they can make deposits before an event and know that the money won’t fluctuate while it sits in the casino account.
- Bitcoin is the number one cryptocurrency being used by 61% of digital currency bettors.
- Ethereum is the number two cryptocurrency being used by 34% of digital currency bettors.
- USDT/USDC are the third most used cryptocurrency by 42% of digital currency bettors.
- Litecoin and all other altcoins make up only 11% of digital currency bettors.
| Cryptocurrency | Usage Rate | Primary Reason for Use |
| Bitcoin | 61% | Highest recognition, first choice for new bettors |
| USDT/USDC | 42% | Price stability, avoids fluctuation during deposit |
| Ethereum | 34% | Low fees, decentralized app access |
| Litecoin & other altcoins | 11% | Alternative during network congestion |
These percentages total to greater than 100% since many of these players are using the services provided by more than one cryptocurrency rather than sticking with a singular cryptocurrency. For example, a player may hold Bitcoin due to its popularity/liquidity as well as USDT (US Tether) in order to be able to deposit their funds at a time when they do not wish those funds to fluctuate in value based on changes in Bitcoin’s price.
What This Means for the Market
The sweepstakes casino and international sportsbook industry has transitioned to supporting digital currencies at a faster rate than its U.S. regulated counterparts. This trend can be attributed to their ability to allow customers from a wider array of states to participate while avoiding many of the banking restrictions associated with U.S. regulated gaming. While this gap continues to narrow, regulated gaming sites operating in jurisdictions with restrictive banking regulations will likely continue to lag behind the pace set by the unregulated sweepstakes and international gaming alternatives when adding stablecoin payment options.
As shown in the growth trend, digital currency will continue to grow as a portion of total deposits (especially for young bettor demographics) who currently utilize digital wallets as an integral part of their everyday financial transactions. In addition, stablecoins appear well-positioned to bridge the gap between card deposits and digital currency deposits over the next few years due to the same characteristics that contributed to their popularity prior to entering the gaming space: speed without volatility.
At present, digital currency represents a solid second alternative to traditional deposit methods; however, current trends indicate that offering digital currency will soon become mandatory for all platforms seeking access to the most rapidly increasing demographic of online bettors.
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