Rise of Cryptocurrency in Online Gambling

The online gambling landscape looks vastly different than it did at the start of the decade. Decentralized platforms, cryptocurrency payments and innovative new games have disrupted the industry. 

Move to Decentralized Platforms 

In 2025, a growing share of online platforms like mFortune Casino and sportsbooks operate on decentralized platforms using blockchain technology. Instead of a centralized company controlling the platform, governance and oversight are distributed across global computer networks.

Some key advantages of decentralized gambling platforms:

• Lower platform fees for operators. Costs are shared across the network, leading to higher profit margins for casinos and sportsbooks. This allows for better odds and more attractive promotions for players.
• Increased transparency. The activities on decentralized platforms can be viewed publicly on the blockchain, building trust through transparency.
• Enhanced security. Decentralized systems are incredibly difficult for hackers to exploit, thanks to blockchain’s layered encryption.
• Availability in restricted markets. Decentralized platforms provide access to online gambling for players in markets where traditional online casinos are banned by authorities.

By the mid of 2025, over 30% of online gambling revenue is expected to flow through decentralized platforms, compared to less than 5% at the start of 2023.

Dominance of Cryptocurrency Payments 

The most pivotal shift in online gambling payments has been the rapid rise of cryptocurrencies. Bitcoin, Ethereum, Tether and other cryptos now make up a majority share of deposits and cash outs at online casinos, sportsbooks and poker sites in most regulated markets.

Here are some standout stats about crypto’s growing footprint in online gambling in 2025.

• 81% of players prefer crypto to credit cards and e-wallets.
• 73% of platforms accept at least 3 major cryptocurrencies.
• Over 50% of revenue flows through crypto payments industry-wide.
• Bitcoin handles 49% of crypto gambling payments, followed by Ethereum (23%) and Tether (16%).

Driving the transition to crypto payments are lower fees, enhanced security, flexibility and, for some players – anonymity. Transaction fees are less than 1% on average using crypto, compared to 3-5% for credit card deposits. And unlike traditional methods, most crypto transactions are free of personally identifiable information.

Anonymity Factor 

For years, traditional online casinos have needed to follow strict know-your-customer (KYC) regulations, requiring proof of identification for account deposits and withdrawals. However, cryptocurrency payments allow for increased anonymity.

While some crypto transactions can still be traced back to an individual through analyzing the blockchain, there are two emerging methods in 2025 providing near complete anonymity:

1. Privacy coins like Monero and Zcash use advanced cryptography to obscure transaction sources while still maintaining trust in the validity of payments. Gambling with these coins has skyrocketed in less restrictive markets.
2. Decentralized mixing services like Tornado Cash allow users to “mix” crypto funds with other users to prevent tracing them back to your wallet address. Adoption of decentralized mixers is growing rapidly among crypto gamblers.

These innovations cater to players who wish to keep their gambling activities private for personal reasons. And their growth is yet another sign of the irreversible impact cryptocurrencies are having on online gambling.

Smart Contract Betting 

Perhaps the most revolutionary payment innovation in online gambling is the rise of smart contract betting. Instead of relying on a casino to manage bets and payouts, smart contracts cut out the middleman through automatic enforcement on the blockchain.

Here’s how it works in practice:

1. The player deposits Ethereum to an Ethereum smart contract address.
2. Code specifies conditions around odds and payouts.
3. Results from an oracle feed verify the outcome.
4. Funds are paid automatically to the winner.

In 2025, smart contract betting will make up over $95 billion in online gambling transaction volume as the technology matures. Players are attracted to the efficiency, security and transparency of using blockchain-enforced contracts. And with lower fees, operators passing on some margin to improve betting lines emerges as a winning strategy to attract bettors.

Bottom Line 

Across decentralized platforms, cryptocurrency payments and smart contracts, the face of online gambling in 2025 focuses firmly on leveraging blockchain technology to provide transparency, security, flexibility and accessibility to players around the world. And while significant regulatory uncertainty remains, innovation marches forward at a relentless pace in the estimated $127 billion global online gambling industry.