Future of Crypto Gambling: Top Trends for 2025 and Beyond

The Future of Crypto Gambling: Trends and Predictions for 2025 and Beyond

Ever wonder what the crypto gambling space will look like in a few years from now? Well, here at CoinBets.com we’ve been pondering this very thing. In this original article, we’ll make some predictions on where we think things are going as crypto, NFTs, DeFi and blockchain continue to transform online gambling.

The Emergence of Crypto Gambling

Before we strap ourselves into the DeLorean and accelerate to 88mph, let’s consider what’s happened in the crypto gambling space to bring us to where we are now.

The online gambling world, or ‘iGaming’ world to use industry talk, has been at the cutting edge of innovation for a long time – driven by technological change and consumer demand (and money, of course). Let’s not forget that the first fully functional gambling software was developed by Isle of Man-based Microgaming (now known as ‘Apricot’) way back in 1994, and the first online casinos were launched in that same year – just four years after Marty McFly and the Doc released their final movie (okay, I promise I’ll stop the Back to the Future references).

So, online gambling has been around for over three decades. But, it was only in 2012 that the first online crypto gambling game went live in the form of SatoshiDice (still available as a DApp). It was very basic, allowing players to place bets with Bitcoin directly on the blockchain, but it proved the concept of provably fair gaming. Within 5 years, some of the major crypto gambling brands we know and love today, like Stake and BC.game were online.

These crypto casinos offered provably fair blockchain-based games, alongside mainstream RNG (random number generator) based slots and table games, plus live dealer casino games, from major providers like Pragmatic Play, Evolution and NetEnt, plus sports and esports betting. Of course, they also supported a wide range of cryptocurrencies, ranging from Bitcoin, Ethereum, and Tether, to Cardano, Binance, and Dogecoin. And, by packaging their offerings in well-designed websites, with intuitive user interfaces and convenient apps, they made crypto gambling accessible to millions.

The State of Crypto Gambling in 2025

However, the honeymoon period of online crypto gambling was soon cut short as various major regulators, including those of the UK, Malta, Sweden, Germany and various US states, banned (or effectively banned) crypto. The one conspicuous exception was Curacao, which despite overhauling its regulatory regime, continued to license crypto casinos. And, that, leads us right up to today’s strange situation where crypto gambling is increasingly popular, but shunned by most mainstream regulators.

To give you an idea of exactly where we currently stand, according to Statista, the global Gaming market went from $37 billion prior to the COVID-19 pandemic to over $70 billion in 2024, and is expected to reach over $150 billion in 2030. However, bets placed with fiat currencies still account for the vast majority of revenue, with the crypto gambling market estimated to generate around $250 million.

But, given the rate of crypto and blockchain adoption globally, we can expect the crypto gambling market share to grow significantly in the coming years. So, let’s take a close look at the individual factors driving change, and how things might play out in the short to medium term.

The Rise of NFTs in Gambling

Non-fungible tokens (NFTs) are blockchain-based digital assets that are unique and can’t be divided. This differs from cryptocurrencies which can be divided into smaller parts – for example, bitcoin can be subdivided into satoshis, just like dollars can be divided into cents. But, it is just as easy to transfer ownership of an NFT as it is for cryptocurrencies, meaning they can be traded or sold on secondary markets.

Thanks to the insane NFT boom during the pandemic period, most people still associate Non-Fungible Tokens with overhyped ‘art’ projects like the Bored Ape Yacht Club and faddish games like CryptoKitties. And, despite a dramatic crash in valuations and sales, NFTs have indeed revolutionized the art and gaming worlds. But, their potential applications in the online gambling industry are only just beginning to be explored.

From Rewards to Creating Stakeholders

The simplest use of NFTs in the context of crypto gambling is for rewards. Unique digital assets can be awarded to players for loyalty, or as prizes in competitions – creating limitless opportunities for more gamification. If the gambling site has a large enough player base, secondary markets can even develop for these NFTs. Of course, a casino or sportsbook could also offer third-party NFTs, with established market values, as rewards and prizes. However, thanks to smart contracts, NFTs can offer so much more. For example, smart contracts can be embedded in NFTs to give owners a stake in a gambling platform. They could enable holders to earn a percentage of the house edge, or give them special access to better odds or exclusive games. We’ve already seen the first experiments in this direction.

For example, in December 2021, Georgia-based (European Georgia, not the American state) software developer Elia Software launched Sloties via a casino of the same name. Sloties are art NFTs featuring unique slot machine-inspired characters, that also entitle the holder to a share of profits from the casino. Despite running into legal hurdles, most notably being issued with cease and desist orders from the state securities regulators of Texas, New Jersey, Kentucky, and Alabama, a healthy secondary market has developed. For example, Slotie NFTs regularly trade on the popular NFT marketplace LooksRare.

Another interesting possible application of NFTs is as tradable items in betting scenarios. For example, sportsbooks could offer NFTs that represent a bet on a specific outcome. This would enable the bets to be traded in real-time before the outcome of the event is decided, creating a new and extremely dynamic market for bettors.

Looking Ahead: Despite the clear potential of NFTs to transform the crypto gambling sector, progress will be limited by the continued regulatory uncertainty in most jurisdictions. Indeed, as long as the major gambling regulators prohibit the use of cryptocurrencies at licensed casinos and sports books, it’s unlikely that the potential of NFTs will be realized. In the meantime, unregulated and lightly regulated casinos and sports books will be able to build an even bigger lead over their strictly regulated competitors.

DeFi Integration: A New Financial Paradigm

From Rewards to Creating Stakeholders

Decentralized Finance, better known as ‘DeFi’, is one of the most profound developments in the blockchain space. Thanks to smart contracts, DeFi platforms can offer a huge variety of financial services – including lending, borrowing, and trading – without the involvement of traditional financial intermediaries like banks. And, considering the traditional financial system is one of the main pain points for both gambling operators and players, this holds enormous potential in the space.

The most obvious benefit of this is allowing both casino/sportsbook operators and players to bypass the traditional financial system for deposits and withdrawals. This can save a significant amount on transaction fees, and make the entire process faster and more secure. Depending on the regulatory regime the site is operating under, it can also provide players with a degree of anonymity. But, the adoption of cryptocurrencies for payments is already well-established in crypto gambling, so let’s look at some more novel possibilities.

P2P Betting, Liquidity Pools and Staking

Decentralized betting platforms can enable players to place wagers directly with each other, bypassing the need for a house (aka the gambling site operator). This peer-to-peer (P2P) model can significantly reduce costs, increase transparency, and guarantee the fairness of games – with all bets and transactions recorded immutably on the blockchain, and all game results verifiable by players. It also adds that all-important social aspect to online betting – as exemplified by the popular social betting platform Kutt.

Beyond the core concept of peer-to-peer betting, decentralized betting platforms also provide other opportunities. In fact, decentralized betting platforms can take the lead from decentralized crypto exchanges (DEXs) like SushiSwap, PancakeSwap and Curve Finance.

For example, staking is a core DeFi concept that could be integrated into gambling platforms. Players could stake their cryptocurrency in a platform’s smart contract to participate in games, with the potential to earn rewards based on their performance. This could create a more engaging experience, as players would have a financial stake in the platform’s success. Participants could also contribute funds and tokens to liquidity pools to provide liquidity to back bets. In this way, players willing to take on some risk can generate an additional income from a share of profits generated.

Looking Ahead: While we’re bound to see DeFi elements continue to be integrated into the crypto gambling ecosphere, progress will be slow due to one major factor. DeFi is complicated. Of course, although the learning curve can be steep, once you’ve immersed yourself in the space and are used to it, it’s easy. But, the basic principles are so alien to most people – especially regulators and politicians – that progress will be slow. Because of this, we expect to see innovators in the space, including iGaming businesses, invest heavily in awareness and education over the next few years.

The Growth of Prediction Markets

One of the most noticeable recent gambling trends has been the growth of prediction markets. Also known as betting markets, decision markets, event derivatives, or idea futures, they allow participants to bet on the outcome of all types of events – from sports matches and election results to economic indicators. A good example of a prediction markets site is Polymarket – the world’s largest as of the time of writing in summer 2024.

Prices for prediction markets fluctuate – with the value of the bet determined by the collective wisdom of the market (or the “Wisdom of Crowds” as James Surowiecki put it). By aggregating many different opinions, this reliance on the principle of collective intelligence often leads to more accurate predictions than those made by individuals. Hence, the decentralized nature of blockchain and crypto is ideally suited to facilitating this kind of betting – removing the possibility for one party to unduly influence or manipulate markets.

As such, the potential for prediction markets to grow in the coming years is significant. As more people become familiar with the concept and more decentralized platforms are developed, we could well see an explosion of new markets covering a wide range of topics. This could offer gamblers new and exciting opportunities to engage with the world around them, as they place bets on everything from political elections to the outcome of major sporting events. In addition to more opportunities to bet, the decentralized, peer-to-peer nature of blockchain- based prediction markets will likely increase confidence in the fairness and integrity of the markets, thus attracting people who wouldn’t have previously gambled.

Looking Ahead: Again, while we’re likely to see blockchain and crypto gambling fuel the growth of prediction markets, it will be tempered by regulatory uncertainty. In particular, the nature of prediction markets inherently blurs the line between traditional gambling and investing. This could cause jurisdictional confusion among authorities. On the other hand, operators could harness it to add more social legitimacy to gambling.

Enhanced Privacy and Anonymity

The Growth of Prediction Markets

Privacy and anonymity have always ranked among the most important considerations for online gamblers, but they are more pressing than ever in the crypto age. This is partly due to the new technology leading to different expectations, and partly due to the increasing prevalence of both cybercrime and the surveillance state.

One of the key benefits of using cryptocurrency for online gambling has always been the ability to transact without providing personally identifiable information. These pseudonymous transactions inherently reduce the risk of identity theft or fraud. Because, even if an online casino or sportsbook is legitimate, merely entrusting them with sensitive data like credit card and bank account numbers makes them vulnerable to theft via hacks.

Advancements in blockchain technology are now enhancing privacy in crypto gambling even further. For example, zero-knowledge proofs (ZKPs) are a cryptographic technique that allows one party to prove to another that a statement is true without revealing additional information. This could be used to verify that a player has sufficient funds to place a bet without revealing their entire wallet balance or transaction history. If you’re interested in learning more about ZKPs, you can read a detailed explanation of how Chainlink’s DECO technology works.

Taking anonymity to an even higher level of so-called privacy coins like Monero and Zcash. These employ advanced cryptographic techniques to obfuscate transaction details, making it extremely difficult for third parties to trace transactions to individual users.

Looking Ahead: However, while the demand for privacy and anonymity is growing, and the technology to provide it is being developed, governments globally are becoming more authoritarian. In the name of combating illicit activities like money laundering and tax evasion, authorities around the world will continue to pressure online gambling platforms to implement ever stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) measures. If this trend continues, we may even see direct action taken against offshore gambling operators. For example, we could see US authorities, in particular, try to shut down K YC-free crypto casinos using the same tactics employed against cryptocurrency mixers. A good example of this is the recent takedown of the Cryptocurrency Mixing Service Samourai Wallet.

Regulatory Challenges and Opportunities

The biggest obstacles to most things in the crypto gambling space come courtesy of regulation. Sometimes it’s over-regulation, sometimes it’s unclear regulation, and sometimes it’s, well, a complete lack of any regulation.

The fundamental challenge is the same as the internet faced – i.e., there are hundreds of national and thousands of state and regional jurisdictions on the planet. And, those running different jurisdictions have very different viewpoints and levels of understanding. This is especially true when it comes to rapidly developing, complex technologies. And, when these technologies can easily cross borders and, in the case of decentralized blockchains, exist essentially everywhere and nowhere at the same time, it causes a massive issue.

Take, for example, the strange situation we now see with crypto gambling in the UK. While the government and mainstream media forced regulators to ban licensees from accepting cryptocurrencies, the UK itself is a crypto business hub, and casino players and sports bettors can easily sign up with and use offshore crypto gambling sites. Even the iGaming hub of Malta, which for several years tried to brand itself as ‘Blockchain Island’, has been very hesitant to allow gambling operators to accept crypto. The same dysfunctional situation can be seen across the world, with very few places introducing coherent regulations covering the use of crypto and blockchain across the entire economy.

SROs – The Logical Regulatory Solution for a Decentralized Industry?

However, despite the lack of progress so far, the regulatory landscape does present opportunities for innovation. For example, some jurisdictions are beginning to recognize the potential benefits of blockchain technology for enhancing the transparency and fairness of gambling activities.

For example, self-regulatory organizations (SROs) – industry-led bodies that develop and enforce standards for their members – could be established. These aren’t a new concept, for example, the New York Stock Exchange (NYSE), the American Council of Life Insurers (ACLI), and the Financial Industry Regulatory Authority (FINRA) are all examples of SROs. By harnessing blockchain technology and adopting best practices for transparency, fairness, and responsiblegambling, crypto gambling SROs could help to build the needed trust with regulators and players alike. This could also help to create a more level playing field, where operators are held to consistent standards, regardless of where they are geographically based. Of course, blockchain and smart contracts also have the potential to help gambling operators in terms of compliance with existing regulatory requirements. For example, they can be used to ensure payouts are calculated fairly and that responsible gambling rules, like betting limits, are automatically enforced.

Looking Ahead: Regulatory issues are likely to remain a serious pain point for the crypto gambling industry. Even if some jurisdictions do iron out clear rules, unless the majority do, there’s still going to be a lot of friction. A great deal is likely to come down to how the industry itself behaves. If regulators, politicians, and the mainstream media feel that operators are pushing too hard or taking advantage, they will probably make life more difficult. On the other hand, if the industry itself comes together, acts with tact, and focuses on education about the benefits of crypto and blockchain, it may be another story.

The Role of Al and Machine Learning

Unless you’ve been living under a rock for the past couple of years, you’ll have noticed the AI Age has well and truly arrived. Indeed, Artificial Intelligence (Al) and Machine Learning (ML) are rapidly transforming a wide range of industries, and the world of online gambling is no exception. These technologies have the potential to revolutionize user experience, enhance security, and create entirely new opportunities for personalized gaming.

From the perspective of casino game developers, Al is also revolutionizing the design, testing, and production of slots. From figuring out complex new game mechanics and producing the artwork for slot games to testing for bugs, Al is significantly streamlining processes. And, while this probably isn’t good news for those working in iGaming companies, it’s going to result in players having more choice than ever – and access to better, more engaging games.

Granular Data and Personalization

One of the most promising applications of Al in crypto gambling is the ability to efficiently create personalized experiences for players. By constantly analyzing huge amounts of both historical and real-time granular data on player behavior, Al algorithms can tailor game recommendations, bonuses, and other features to individual preferences. Using Al, this can be done at a cost, speed and scale not previously possible.

Importantly, Al also offers the potential to cut down on information overload or fatigue. That’s when the amount of choices or options offered is offputting, causing people to leave. This can be a problem with anything online, from e-commerce to streaming services, and for iGaming operators, it’s especially problematic with things like slots and sports betting.

Not only will this lead to a more engaging experience for players, but it also has the potential to make marketing much more efficient for gambling companies. Illustrating just how pressing the need to improve marketing is, many iGaming companies are finding it very difficult to affordably acquire new customers. As Alex Kornilov, CEO of advertising solutions supplier Betegy, explained in a June 2024 interview with iGB:

“Currently the acquisition strategy of every brand, especially in the United States, leads from spending money and seeing what sticks, which brings a lot of uncertainty at the brand level and no possibility to really tell what works and what doesn’t… That’s why for example, last year there was a crisis on the acquisition side. If we acquire a player at 300 bucks and the lifetime value is ten, how long can we sustain this kind of aggressive growth?”

Security and Responsible Gambling

Al can also be used to enhance the security of crypto gambling platforms. Fraud is a big problem in the online gambling industry, hurting both operators and players. However, Al algorithms are particularly well-suited to identifying suspicious behavior. By analyzing patterns of play, Al systems can efficiently detect anomalies that may indicate cheating, collusion, or other forms of fraud.

Similarly, when it comes to tackling problem gambling, Al and ML can again tap their ability to analyse massive amounts of data and spot patterns that humans could easily miss. Several Al- based responsible gambling tools are already used by online gambling operators, and judging from their performance so far, adoption will only accelerate.

Demonstrating how effective machine learning can be in detecting early signs of problem gambling, in a 2024 study in the Journal of Gambling Studies, Máté Cs. Sándor & Barna Bakó, noted:

Demonstrating how effective machine learning can be in detecting early signs of problem gambling, in a 2024 study in the Journal of Gambling Studies, Máté Cs. Sándor & Barna Bakó, noted:

“Machine learning approaches, such as the ones used in this study, offer an easy-to- implement monitoring tool for gambling platforms. These models can serve as a foundation for implementing proactive measures, such as nudging or forced exemptions, to deter at-risk gamblers from developing or continuing problem gambling behaviors. By identifying players early on who show signs of problematic gambling, operators can provide targeted interventions and support to promote responsible gambling practices and minimize harm.”

However, Al and ML also present more prickly possibilities. Specifically, because Al can analyse enormous data sets, extremely quickly. Now, on the one hand, that can help spot trends and patterns in historical betting information – things that human analysts would miss. And, this could be used to improve betting strategies, odds calculations, and the fairness of the entire gambling process. But, it could also, deliberately or inadvertently, exploit vulnerable individuals and encourage problem gambling.

Looking Ahead: Al has the potential to enhance efficiencies and improve experiences across every aspect of the online gambling sector. From cutting operational costs to improving individualization, it is going to have a huge impact over time. But, Al systems need to be designed and implemented in a way that prioritizes responsible gambling and protects players from harm – and that is going to be challenging, to say the least. It’s likely that at least one or two major crypto gambling sites will cause some kind of high-profile controversy by deploying Al tech without sufficient safeguards. But, then again, this is to be expected in every industry over the next few years.