Will Bitcoin Halving Influence the iGaming Industry?
The second quarter of 2024 marked a significant event in the world of cryptocurrency: the Bitcoin halving.
This event, which occurs approximately every four years, has implications not only for the value of Bitcoin but also for industries that rely heavily on cryptocurrencies, such as the iGaming sector. In this blog, we explore the impact of the 2024 Bitcoin halving on the online casino industry and what it means for players and operators alike.
Bitcoin halving is a pre-programmed event that reduces the reward for mining new blocks by 50%. Since Bitcoin’s launch in 2009, there have been four halving events—in 2012, 2016, 2020, and 2024. This process is crucial for controlling Bitcoin’s inflation and ensuring its scarcity, with a total supply cap of 21 million coins. Historically, each halving has been followed by a significant increase in Bitcoin’s price due to reduced supply and heightened scarcity.
According to blockchain experts, the 2024 halving could introduce new regulations aimed at ensuring fairness, responsible gambling, and anti-money laundering measures within the crypto-driven iGaming sector. The anticipated increase in Bitcoin’s value may benefit Bitcoin-friendly online casinos, enhancing player trust and transparency through the adoption of crypto-friendly solutions.
SOFTSWISS, a leading provider of online casino software, analyzed data from approximately 250 crypto-friendly brands that processed crypto transactions in the first half of 2024. The findings revealed that the Total Bet Sum, which includes both fiat and crypto transactions, grew by 46.6% compared to the same period in 2023. The Total Bet Count also saw an impressive increase of 51.7%.
Interestingly, fiat bets have been growing at a faster rate than crypto bets. The Fiat Bet Sum increased by 65.2% in the first half of 2024 compared to the previous year, suggesting that traditional currency remains dominant despite the growing popularity of cryptocurrencies in online casinos.
The 2024 Bitcoin halving appears to have influenced player behavior in the iGaming industry. While the Crypto Bet Sum saw a modest 2.3% increase compared to 2023, the Crypto Bet Count dropped by more than 20% year-on-year. This decline suggests a more cautious attitude among players towards using cryptocurrencies, potentially due to the strengthening Bitcoin exchange rate.
Despite this, the average crypto bet size has increased, positively impacting the overall Crypto Bet Sum. As Bitcoin’s value continues to fluctuate, some players may adopt a more conservative approach to using their Bitcoin for online casino games.
Around 93% of crypto bets in the first half of 2024 were facilitated through in-game currency conversion tools. These tools allow online casinos to engage players with cryptocurrency assets in games originally designed for fiat currencies, providing a competitive edge for operators who adopt them.
Bitcoin, Litecoin, Ethereum, Tether, and Dogecoin remain the top five most popular cryptocurrencies in the iGaming sector. However, Bitcoin's dominance has waned, with its share declining by around 23 percentage points in the first half of 2024 compared to the same period in 2023. This decline is likely due to players choosing to hold onto their Bitcoin as its value increases.
Conversely, other cryptocurrencies like Litecoin and Tether have seen significant growth, with Litecoin's share increasing by 8.9 percentage points and Tether's by 7.1 percentage points in H1 2024 compared to H1 2023. Tether has even overtaken Dogecoin in popularity, climbing to fourth place in the rankings.
As the iGaming industry continues to grow, with a significant portion of bets coming from the crypto segment, the dynamics within this sector are likely to evolve further. The fluctuations in Bitcoin's position present both opportunities and challenges. Operators must adapt by investing in employee training, software development, and crypto processing integration to stay competitive. Ensuring platform security and compliance with evolving regulations will also be crucial.
The 2024 Bitcoin halving has had a noticeable impact on the iGaming industry, influencing both player behavior and the market share of various cryptocurrencies. While Bitcoin's dominance may have decreased, the overall growth of the crypto segment in online casinos continues to thrive. For operators, the key to success lies in adapting to these changes and leveraging the opportunities presented by the evolving crypto landscape.
Whether you’re an operator looking to enhance your platform or a player eager to explore Bitcoin-friendly online casinos, staying informed about these trends will be essential in navigating the future of iGaming.
