As cryptocurrency for online payments is gradually adopted by global businesses, one sector has been particularly slow to embrace the rollout — American online casinos. This is out of step with many UK-based and European sites, which have been fast to see the benefits of the technology. In this guide, we’ve assessed why U.S. casinos have been slow to offer crypto and whether this could change soon.
The Current U.S. Online Casino Market
Compared to its neighbors across the pond, the U.S. online gambling industry is relatively immature. There are currently only eight U.S. states that offer legal online casino gambling, and on a population level, these represent just a small fraction of U.S. residents. While states such as New Jersey and Delaware have offered online casino gaming for more than 10 years, the remaining six have only regulated the activity in the past few years.
These states have vastly different gaming options due to their jurisdiction-specific laws. For example, while a player in New Jersey may be able to enjoy fun slots and bingo hybrids by playing Slingo for real money, players in Rhode Island may not have access to the game. The market’s immaturity is one of the major reasons crypto has yet to be adopted.
Why Crypto Is Yet to Be Offered at U.S. Casinos
Although cryptocurrencies have existed for over 15 years, it wasn’t until 2021 that crypto fully entered the mainstream consciousness. This year marked the first time that wider society became educated about the promise of the payment method, with its transparency, security features, and reduced costs lauded to be game-changing.
However, the U.S. government has been cautious about recognizing crypto as a legitimate currency, with some states outright banning its use at gambling sites. It hasn’t been all dire, though. In 2022, gaming compliance service Vixio reported that the Barstool Sportsbook became the first U.S. gambling site to accept crypto as a payment method.
This option was only offered in Colorado and Virginia, two states that do not offer online casinos. While regulators have progressed slowly with crypto, major gambling companies have made the technology a central part of their global payment strategy. Gambling conglomerate Flutter Entertainment, for example, has recognized the importance of advanced payment solutions to drive innovation.
Cryptocurrencies in International Markets
Although the U.S. is lagging when it comes to crypto casinos, international gambling operators have been quick to realize the benefits of cryptocurrency payments at casinos. In the UK, for example, its regulator, the UK Gambling Commission (UKGC), has approved the use of the currency. This is noteworthy as the UKGC is considered to be one of the strictest regulators in the world.
Customers at various sites can fund their sports betting and casino accounts with several major currencies, including Bitcoin, Ethereum, and Litecoin. As the U.S. has modeled much of its gambling market after the more established UK market, it is likely waiting to gauge its success there before trialing it at home.
The Future of Crypto Payments at U.S. Casinos
For the time being, crypto payments at U.S. casinos are hobbled by the slow rollout of expanded legalization and government caution. However, with major gambling stakeholders invested in its adoption, we predict that cryptocurrency payments at online casinos will arrive in the next two years.
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