In March 2024, Bitcoin surged to an unprecedented high, approaching 70,000 euros per coin. This significant development has left a notable impact on the iGaming market. SOFTSWISS, a pioneering tech company with over 15 years of experience in crypto iGaming software development, offers insights in its quarterly crypto analysis.

Over 220 brands supported by the company conducted crypto transactions in the first quarter of 2024, marking a 12% increase from the previous quarter. SOFTSWISS experts utilized extrapolation, comparative, and correlative analysis to interpret data collected from crypto-friendly brands.

Anticipated Growth in the iGaming Market

According to Statista, the global online gambling and sports betting industry is projected to exceed 170 billion euros by 2032. SOFTSWISS data corroborates this optimistic outlook, showing consistent year-on-year growth in the iGaming market.

In the first quarter of 2024, the Total Bet Sum in euros rose by 5.8% compared to the final quarter of 2023. Year-on-year, comparing Q1 2024 to Q1 2023, this growth is even more striking at 47.2%.

Similarly, the Total Bet Count, encompassing both fiat and crypto bets, saw a slightly higher increase of 6.1% in Q1 2024 over the previous quarter. The year-on-year increase in this metric is remarkable, with a 57.2% rise.

Recent advancements in technology have driven the popularity of iGaming, enhancing its global reach and accessibility. Improvements in internet connectivity and the introduction of new payment methods have streamlined payment processes, contributing to this trend.

Ongoing quarterly analysis since early 2022 shows that fiat bets have been growing more robustly than crypto bets. In Q1 2024, the Fiat Bet Sum increased by 6.9% compared to Q4 2023, while the Crypto Bet Sum grew by 2.4%.

As a result of the more rapid growth of fiat bets, the share of crypto bets in the Total Bets Sum slightly decreased. In the first quarter of 2024, crypto bets constituted 24.4% of the Total Bets Sum, a 0.8 percentage point decline from Q4 2023.

Current Status of Crypto in iGaming

In examining crypto bets, it is essential to note that nearly 93% are facilitated through an in-game currency conversion tool, which is gaining popularity. This tool allows operators to engage players with cryptocurrency assets in games initially designed for fiat only. Operators leveraging such options are gaining a competitive edge in the market.

Despite a modest 2.4% growth in the Q1 2024 Crypto Bet Sum compared to the previous quarter, year-on-year analysis reveals a 20.8% increase. The Crypto Bet Count remained steady in Q1 2024 relative to the previous quarter, yet showed a 21.3% year-on-year rise. These figures indicate a sustained interest among players in crypto gaming.

The Average Crypto Bet: A Closer Look

The average crypto bet increased from 1.66 euros in Q4 2023 to 1.71 euros in Q1 2024, correlating with the significant appreciation of Bitcoin during this period.

Conversely, the average fiat bet remained steady at approximately 0.81 euros in both Q1 2024 and Q4 2023. The average total bet has remained unchanged since the second half of the previous year, at 0.93 euros.

The average crypto bet being double that of fiat bets indicates a preference for digital currencies among higher-income players.

Bitcoin’s Declining Share

The top five most utilized digital currencies in iGaming have remained stable over the past two years, with minor ranking shifts. Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether continue to dominate the market.

In Q1 2024, Bitcoin’s share saw a notable drop of 9.4 percentage points compared to Q4 2023. This decline could be due to the strengthened Bitcoin exchange rate, prompting players to adopt a more cautious approach.

In contrast, the shares of other digital currencies have risen. Ethereum and Litecoin saw growth of 4.0 and 3.8 percentage points, respectively. Additionally, Dogecoin moved up to fourth place, surpassing Tether.

Source:

“Navigating Bitcoin’s Impact: SOFTSWISS’ iGaming Industry Overview”, softswiss.com, May 16, 2024.

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