Crypto Betting Market Booms as Industry Eyes Billion-Dollar Volumes in 2025

The crypto gambling and betting industry is experiencing a period of rapid expansion, with trading volumes soaring and institutional interest intensifying. The sector gained widespread attention in November 2024 when Polymarket, a leading decentralized prediction platform, accurately forecasted the U.S. presidential election outcome while recording a staggering $2.5 billion in monthly trading volume.

The momentum continued into December 2024, with Crypto.com launching a dedicated sports event trading platform, further integrating crypto into the online gambling landscape.

In January 2025, crypto casino Stake.com, which processes approximately $1.1 billion in monthly deposits, secured naming rights for a Formula 1 car, underscoring the growing legitimacy and mainstream recognition of crypto-powered betting platforms. The combination of rising adoption and technological innovation in decentralized finance (DeFi) continues to fuel the sector’s remarkable expansion.

Crypto Gambling Platforms Gain Market Share in the iGaming Sector

The iGaming industry, which encompasses online casinos and sports betting, has been on an upward trajectory for two decades. According to iGamingBusiness, global winnings reached nearly $139 billion in 2023, with projections suggesting the industry could grow to $266 billion by 2030. Statista estimates that in 2024, the total iGaming market, measured by company revenues, stood at $97 billion, with sports betting (46%), online casinos (36%), and lotteries (16%) making up the largest segments.

Crypto-based gambling has firmly established itself within this market, offering unique advantages to both centralized and decentralized platforms. On centralized sites, blockchain technology facilitates faster transactions, lower fees, and global accessibility, though some jurisdictions continue to impose restrictions. Meanwhile, decentralized gambling platforms leverage blockchain transparency and DeFi-based innovations, such as decentralized betting pools, to create new models of engagement.

According to Softswiss, a leading software provider for the iGaming industry, 17% of all iGaming bets in the first three quarters of 2024 were placed in cryptocurrency. While crypto betting continued to grow by 15% year-over-year, its share of total betting volume declined slightly due to a 50% surge in fiat-based bets during the same period.

The most popular cryptocurrencies used in iGaming have remained consistent over the years, with Bitcoin, Ethereum, Litecoin, Tether, and Dogecoin dominating the sector. Bitcoin continues to be the most widely used digital asset, but altcoins have gained significant traction, increasing their share of crypto bets from 25% in early 2023 to over 47% in 2024.

Additionally, casino-specific tokens designed to enhance user engagement are gaining traction. Tokens like Rollbit’s RLB and Shuffle’s SHFL are being integrated into betting platforms, offering cross-platform compatibility, reduced volatility, and exclusive rewards for users.

A Potential Crypto Gambling Unicorn in 2025?

Since the launch of SatoshiDice in 2012, the crypto gambling sector has evolved considerably, with major platforms gaining a significant foothold in the market. According to Tanzanite, Stake.com currently holds a commanding 52% market share among the largest crypto casinos—excluding prediction markets and trade signal-based games. While Stake.com operates as a centralized platform, it heavily relies on blockchain for handling crypto bets and ensuring transparency.

The platform has gained further mainstream visibility through its partnership with rapper Drake, who frequently livestreams high-stakes bets. In May 2022, Drake famously won $17 million on a single roulette spin but also lost $660,000 on sports bets within the same month.

However, crypto casinos remain vulnerable to security risks. In September 2023, Stake.com suffered a $41 million hack, highlighting the ongoing challenges of securing crypto assets in the gambling industry.

Meanwhile, decentralized gambling applications (DApps) are gaining momentum. According to DappRadar, which tracks on-chain betting platforms, Trade Signal on BNB Chain leads the market with $2 billion in monthly volume, followed by Polymarket at $760 million—a decline from its election-season peak but still a formidable figure. CryptoFights Pro ranks third with a much lower $18 million monthly volume, though it operates on PlayBlock, a Layer 3 blockchain built on Arbitrum Nova, optimized for gasless gambling transactions. Currently, 24 decentralized gambling DApps are operating on this network, according to DappRadar.

Regulatory Scrutiny Intensifies Amid Industry Growth

Despite its expansion, the crypto gambling industry faces increasing regulatory challenges. In many jurisdictions, access to these platforms remains restricted or outright banned. For instance, Stake.com is prohibited in the European Union, limiting its reach in one of the world’s largest gambling markets.

In 2024, regulatory crackdowns targeted prediction markets, with Taiwan and France banning Polymarket due to concerns over financial risk and compliance. In January 2025, Singapore joined the ban, reinforcing the uncertain regulatory environment surrounding crypto-betting platforms.

As crypto gambling platforms continue to innovate and expand, 2025 is poised to be a critical year for the industry. While billion-dollar volumes are within reach, regulatory uncertainty remains a significant hurdle, shaping the future of crypto-powered betting markets in the years to come.