Defying the ban, crypto-based gambling platforms predict a gross income of $80 billion in 2024
Unregulated Online Gambling Soars Through Tech Wizards and Legal Loopholes
Cryptocurrency casinos are taking the gambling world by storm, despite stringent legislation and blocking in many countries. This rapid expansion has sent shivers down the spines of regulators, experts, and advocates for digital security and gaming responsibility alike.
Geoblocks Crumble Like a Sandcastle
Seemingly impenetrable obstacles set up by governments in developed jurisdictions, such as the USA, China, UK, and EU nations, don't deter users. These users, in the eyes of analysts, are fueling the growth of the underworld of gambling. Ismail Vale, founder of Yield Sec, refers to this surge as a "global hidden explosion."
So, how do these gamblers bypass the geoblocks? By utilizing clever tricks like VPN services, mirror sites, URL redirection, and other technical solutions. Not only can ready-made accounts for cryptocurrency casinos be purchased on p2p platforms, eliminating the need for mandatory identity verification, but these platforms can also be accessed on platforms like Stake, Rollbit, and Roobet, which are officially banned in these regions.
According to former gambling addict Jordan Lee, involved in educational activities now, cryptocurrency casinos are primarily registered in offshore zones where such activities are legal. These regions include Curaçao, Malta, Isle of Man, and Gibraltar.
In 2024, Yield Sec claimed that there were tens of thousands of cryptocurrency casinos operating globally, with user numbers in the tens of millions. The average deposit amount on these platforms is ten times higher than that of players on licensed sites, owing to the absence of spending limits and minimal to non-existent identity verification.
- Why the Attraction?
- The absence of spending limits
- Minimal or non-existent identity verification
With features like these, cryptocurrency casinos pose significant risks to minors, individuals with addiction issues, and citizens of countries with a complete ban on gambling. Operators may only be deemed lawbreakers if they intentionally offer their services to residents of prohibited jurisdictions, such as the UK or USA.
| Instruments of Bypass | Mechanism ||------------------------------------------|-------------------------------------------------------------------------------|| Technological Workarounds | VPNs, mirror links, and URL redirection to bypass geoblocking[1][3][5]. || Offshore Jurisdictional Arbitrage | Operations based in crypto-friendly regions (Curaçao, Malta)[1][4]. || Weak Identity Verification | Cryptocurrency transactions to bypass strict identity checks[1][2]. || Influencer-Driven Access | Guides and accounts sold via social media to circumvent restrictions[1][4][5]. |
[1] Source: Link (For Example: https://www.example.com)
[2] Source: Link (For Example: https://www.example.com)
[3] Source: Link (For Example: https://www.example.com)
[4] Source: Link (For Example: https://www.example.com)
[5] Source: Link (For Example: https://www.example.com)
- What attracts users to cryptocurrency casinos could be the absence of spending limits and minimal or non-existent identity verification.
- Technological workarounds like VPNs, mirror links, and URL redirection are used to bypass geoblocking set up by governments in developed jurisdictions.
- Cryptocurrency casinos, primarily registered in offshore zones where such activities are legal, such as Curaçao, Malta, Isle of Man, and Gibraltar, have found a way to bypass identity checks for customers through cryptocurrency transactions.
- Guides and accounts are often sold via social media to circumvent restrictions in regions where these casinos are officially banned.
- Operators may only be considered lawbreakers if they intentionally offer their services to residents of prohibited jurisdictions, such as the UK or USA.
