Bitcoin's Impact on iGaming Market Analyzed by SOFTSWISS Amid Historic Peak

In March 2024, Bitcoin reached a historic peak, nearing 70,000 euros per coin. This remarkable rise in Bitcoin's value has notable implications for various industries, paticularly the iGaming market. SOFTSWISS, a prominent tech company specializing in crypto iGaming software development with over 15 years of experience, has provided its insights in the latest quarterly crypto analysis.

Growing Engagement with Crypto Transactions

The first quarter of 2024 saw a significant uptick in crypto transactions among brands powered by SOFTSWISS. Over 220 brands engaged in these transactions, marking a 12% increase from the previous quarter. SOFTSWISS experts analyzed data from these crypto-friendly brands using various analytical methods, including extrapolation, comparative, and correlative analysis.

The global online gambling and sports betting industry is projected to surpass 170 billion euros by 2032, according to Statista. SOFTSWISS data supports this trend, showing consistent growth in the iGaming market.

In the first quarter of 2024, the Total Bet Sum in euros increased by 5.8% compared to the last quarter of 2023. Year-on-year, from Q1 2023 to Q1 2024, this figure rose by an impressive 47.2%. Additionally, the Total Bet Count, which includes both fiat and crypto bets, grew by 6.1% quarter-over-quarter and saw a significant year-on-year increase of 57.2%.

The iGaming industry's recent popularity can be attributed to technological advances and improved global connectivity. Enhanced internet quality and the introduction of new payment methods have simplified transactions, making iGaming more accessible and attractive to a wider audience.

Since the beginning of 2022, SOFTSWISS has conducted in-depth quarterly analyses, revealing that fiat bets are growing more rapidly than crypto bets. In the first quarter of 2024, the Fiat Bet Sum increased by 6.9% compared to the fourth quarter of 2023, while the Crypto Bet Sum saw a smaller rise of 2.4%. This disparity resulted in a slight decrease in the share of crypto bets, with the crypto share in the Total Bets Sum dropping by 0.8 percentage points to 24.4%.

Current Trends in Crypto Betting

Nearly 93% of crypto bets are facilitated through in-game currency conversion tools, which allow operators to incorporate cryptocurrency into games originally designed for fiat currency. This feature provides operators with a competitive edge by appealing to players interested in using cryptocurrency.

The first quarter of 2024 saw the Crypto Bet Sum grow by a modest 2.4% compared to the previous quarter, but the year-on-year growth was more substantial at 20.8%. The Crypto Bet Count remained stable quarter-over-quarter, with a year-on-year increase of 21.3%, reflecting sustained interest in crypto gaming.

In the first quarter of 2024, the average crypto bet increased to 1.71 euros from 1.66 euros in the last quarter of 2023, correlating with the surge in Bitcoin's value. Meanwhile, the average fiat bet remained steady at approximately 0.81 euros in both quarters. The overall average bet has been consistent since mid-2023, holding at 0.93 euros. The higher average for crypto bets suggests that players using digital currencies tend to place larger wagers.

Vitali Matsukevich Chief Operating Officer at SOFTSWISS said: ''The lack of a substantial increase in the number of crypto bets during Q1'24 can be partly attributed to the significant rise of the Bitcoin exchange rate during this period, leading players to be more cautious with their crypto bets. This trend mirrors the situation in the first quarter of the previous year when the Bitcoin exchange rate surged following a decline at the end of 2022.''

Shifts in Digital Currency Preferences

Despite Bitcoin's historic high, its share in iGaming transactions declined by 9.4 percentage points in the first quarter of 2024 compared to the previous quarter. This decrease might be due to the rising Bitcoin exchange rate, prompting players to be more cautious. Conversely, other digital currencies like Ethereum and Litecoin saw increases of 4.0 and 3.8 percentage points, respectively. Dogecoin also gained traction, moving up in the rankings and surpassing Tether.

''The Top Five most operated digital coins in iGaming have remained stable during the last two years with minor changes in ranking order. The top still includes Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.

The iGaming market is experiencing steady growth, driven by technological advances and the introduction of various payment options. While fiat bets are growing at a faster rate, the interest in crypto gaming remains strong. Innovative tools and strategies, such as in-game currency conversion, are enhancing player engagement and providing operators with competitive advantages.

Source:

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