Bitcoin Halving's Impact on iGaming ⋆

Bitcoin Halving’s Impact on iGaming

Cryptocurrency’s influence on online gambling (iGaming) is undeniable. The second quarter of 2024 was marked by a historical event: the Bitcoin halving. But how did the recent Bitcoin halving shake things up? Bitcoin Halving iGaming

Let’s dive into the latest insights from SOFTSWISS, a leading iGaming software provider.

Post-Halving iGaming Market Overview

The Bitcoin halving, occurring roughly every four years, cuts the reward for mining new blocks in half. Experts predicted this event could trigger regulations in crypto-driven iGaming, potentially drive Bitcoin’s value up, and benefit Bitcoin-friendly platforms.

Total Bets on the Rise

SOFTSWISS analyzed data from over 250 crypto-friendly brands. Here’s what they found:

The overall betting index jumped 13% since 2024’s start.
The total bet sum (both fiat and crypto) saw a massive 46.6% increase compared to the same period in 2023.

Total bets sum

Fiat Bets Surge, Crypto Bets Take a Backseat

While the total betting pool is thriving, an interesting trend emerges:

Fiat bets are experiencing significantly higher growth than crypto bets.
In the first half of 2024, fiat bets increased by 65.2% compared to the same period in 2023.
Crypto bets, however, only saw a modest 2.3% increase year-over-year.

A Cautious Approach to Crypto Gaming

This shift towards fiat could be attributed to a few factors:

Stronger Bitcoin: As Bitcoin’s exchange rate strengthens, players might be more hesitant to spend it, opting for fiat instead.
Crypto Volatility: The ever-fluctuating nature of cryptocurrency might make some players wary of using it for gambling.

Interestingly, despite the lower overall crypto bet sum, the in-game currency conversion tool remains popular. Nearly 93% of crypto bets utilize this feature, allowing players to use their crypto assets in fiat-based games.

Cryptocurrency Breakdown in iGaming

Bitcoin, Litecoin, Ethereum, Tether, and Dogecoin create the stable top 5 most popular cryptocurrencies in iGaming.

Bitcoin – 52.72%
Litecoin – 14.32%
Ethereum – 14.14%
Tether – 11.72%
Dogecoin – 4.59%
Other – 2.51%

Bitcoin experienced a decline of around 23 p.p. in the first half of 2024 compared to the first half of 2023 as it exchange rate strengthened. On the other hand, Litecoin and Tether demonstrated growth of 8.9 p.p. and 7.1 p.p., respectively.

Adapting to the Evolving Landscape

Andrey Starovoitov, Co-CEO at SOFTSWISS, offers valuable insights:

“The anticipated impact of the Bitcoin halving, coupled with the strengthening of the Bitcoin exchange rate in the first half of 2024, may lead to a more cautious attitude among players towards using cryptocurrencies.”

Andrey Starovoitov, summarises:

“Confirming experts’ anticipations, the iGaming industry is experiencing active growth, with a fifth of all bets coming from the crypto segment. The intriguing fluctuations in Bitcoin’s position promises both increased profits and a more cautious attitude toward spending. However, every challenge brings its own opportunities. The key to success lies in adapting by investing in employee training and software development, integrating crypto processing, and ensuring your platform remains secure throughout the process.”