How have cryptocurrencies changed the landscape of sports betting?
When you’re making a bet to back your basketball team or on the outcome of the Super Bowl, you might have noticed you can pay using crypto. It started with Bitcoin and has spread to even include memecoins like Dogecoin.
Crypto is a popular option with bettors thanks to its lower fees and faster transaction speeds. This has supported the growth of the sports betting industry throughout the US. The two tech heavyweights have become intertwined with crypto gambling companies like Stake.com supporting events like the Ultimate Fighting Championship. Let’s look at what this relationship means for the future of the two industries.
When did crypto become popular?
If you’ve only heard of one cryptocurrency, it’s likely to be the very first one — Bitcoin. The first transaction using the original crypto took place in early 2009, but it wasn’t until 2013 that it gained widespread public attention. This was the year that Bitcoin went on a monumental price rollercoaster.
At the start of 2013, a single Bitcoin was valued at $20; just a few months later its value climbed to $230. For the rest of 2013, Bitcoin dramatically spiked and fell with the currency plummeting back down to a price of $68. When the year ended, it had broken into the thousands with a worth of $1,200 and had begun creeping into the general public consciousness.
Although many industries were cautious due to the currency’s characteristic volatility, others, like the sports betting industry, were quick to adopt it as a payment option. Since the early days, crypto in sports betting has continued to grow in popularity and the payment method is offered at many of the top providers.
Making the move to sports betting
The sports betting industry is often one to quickly adopt innovative technology, including options such as AI and VR. Crypto was no exception, with the very first sportsbooks that accepted crypto, Nitro Sports and CloudBet, becoming available during 2013.
In 2014, BetVIP went live ahead of the football World Cup in Brazil². It was the first sportsbook which specialized purely in crypto and offered pre-match and in-play sports betting across hundreds of international markets, including here in the US.
Why is crypto popular with gamblers?
Crypto payments offer better value for players as players usually only need to pay the blockchain fee. That’s also the case for international playing; crypto has no exchange rates, so players can get more bang for their buck. Another bonus is that crypto payments are faster, often appearing in accounts in a matter of minutes.
You may have heard crypto referred to as a more secure online payment method. That’s because it relies on blockchain technology. Rather than having to upload their details to a site, which many gamblers understandably have concerns over, they use third-party wallets. Only those with the unique crypto key, which involves a string of random characters, can gain access to a crypto wallet.
Cementing the online shift
Although the US remains one of the hubs for in-person gambling, it hasn’t gone unscathed by the online move. In 2025, the American online gambling market is predicted to generate a revenue of $5.97bn and grow at a rate of 16.5% to be worth $12.81bn in 2030³.
What makes online gambling more appealing?
The popularity of crypto as a sports betting payment method highlights one of the advantages, which is more ways to pay. Online platforms offer more options than just cash or card, so crypto investors can spend their money on real-world applications. Today’s options have also grown significantly since the first sportsbooks that accepted crypto back in 2013; now bettors can pay using Litecoin, Dogecoin, Ethereum, Ripple and more.
There are also more promotions available at online providers. While you simply place a bet at an in-person provider, online bettors can make the most of offers like free bets or deposit matches. The most obvious selling point though is convenience. It’s now possible to place a sports bet from wherever you are, at any time. This includes betting on international sports like the Premier League. These matches generally happen when onsite betting is closed, if the markets are even offered onsite, so online betting makes them accessible.
Crypto and sports betting partnerships
There are strong connections between the two industries thanks to sports betting’s early adoption of crypto. An example of this is the relationship between blockchain companies and gambling sites with the UFC. The partnership, first established in 2021, led to Crypto.com becoming the first global Official Fight Kit Partner of the UFC.
Boosting crypto awareness
The deal increased exposure for the three big names in crypto; UFC events regularly draw one million viewers, with major fights even surpassing 2.4 million viewers⁴. These viewers have seen the crypto partnership through banners, kits, pop-ups and interviews.
For sports betting fans, Stake.com is the most significant sponsor. The crypto sportsbook has focused on promoting the role of the currency in the growth of MMA.
Shaping betting in the future
President of Global Payments Gaming Solutions Christopher Justice highlighted the important role that crypto will play in the future of sports betting in the US. In a recent interview with Forbes, when asked how he thought payments would look at online sportsbooks in the future, Justice pointed towards “modern payment methods” saying that “Gen Z are less likely to use cash and cards”.
As one such payment method, cryptocurrency seems set to play an important role in the future of sports betting. It’s also popular with the young adult market that Justice says sportsbooks will have to appeal to. Of those who invest in crypto, 34% are aged between 25 and 34, making it the dominant age bracket⁵. If we combine this interest with the other advantages of crypto, it’s not hard to see it becoming the go-to payment method for sports bettors in the future.
What else makes sports betting so popular?
One of the most obvious peaks in sports betting is around the biggest events in sports. Whether it’s the Super Bowl, the FIFA World Cup or the NBA Finals, sports betting gets a serious boost during these popular events. This year’s Super Bowl resulted in the highest ever wagering total with an estimated $1.39bn backing either the Eagles or the Chiefs⁶.
Constant innovation
The sports betting available here in the US is constantly evolving. Thanks to live and in-game betting, fans aren’t just placing a bet, they’re truly in on the action. Bettors can now place multiple bets in one as accumulator bets and even cashout their money while a game is ongoing. All this innovation is coupled with smoother and easier to use betting platforms. This places an improved sports betting experience at the fingertips of players throughout the country.
What could the future look like for sports betting?
Sports betting was reinstated in the US following the favorable 2018 Supreme Court ruling; now, the industry is really hitting its stride⁷. This growth is supported by cryptocurrencies, which offer a new, popular way to pay that appeals especially to a young adult audience, alongside big sports events and other innovations. In the future, we’re likely to see cryptocurrencies playing an important role in supporting the continued growth of the sports betting industry.
² First Bitcoin-Only Sportsbook Launches, Written by Brad Allen, Published by Gambling Insider.
⁵ Cryptocurrency Ownership Data, Written by Triple A, Published by Triple A.
