In March 2024, Bitcoin reached a historical high, nearing 70,000 euro per coin. How does this affect the iGaming market? SOFTSWISS, with over 15 years in the industry and known for crypto iGaming software, shares its analysis.
Over 220 brands powered by the company used crypto transactions in the first quarter of 2024, which is 12% higher than the previous quarter. SOFTSWISS experts analyze data from crypto-friendly brands using extrapolation, comparison, and correlation.
The global online gambling and sports betting industry should exceed 170 billion euro by 2032, according to Statista. Based on SOFTSWISS data, the iGaming market shows stable yearly growth.
In euro terms, the Total Bet Sum grew by 5.8% in the first quarter of 2024 compared to the last quarter of 2023. Year-on-year, comparing Q1’24 with Q1’23, the growth is 47.2%.
The Total Bet Count, both fiat and crypto, grew by 6.1% in Q1 2024 compared to the previous quarter. Year-on-year, the increase is 57.2%.
The rise of iGaming stems from its global reach and better internet connectivity, along with new payment methods.
The ongoing quarterly analysis since 2022 shows that fiat bets grow more than crypto bets. In Q1’24, the Fiat Bet Sum increased by 6.9% compared to Q4’23, while the Crypto Bet Sum rose by 2.4%.
The faster growth of fiat bets reduced the share of crypto. In Q1 2024, the crypto share of Total Bets Sum was 24.4%, down by 0.8 percentage points from Q4 2023.
Almost 93% of crypto bets use the in-game currency conversion tool. This tool lets operators use cryptocurrency in games designed for fiat, giving them a competitive edge.
The Q1’2024 Crypto Bet Sum grew by 2.4% from the previous quarter, while year-on-year, it increased by 20.8%. The Crypto Bet Count stayed the same in Q1’24 compared to Q4’23 but rose by 21.3% year-on-year. This shows a steady interest in crypto gaming.
The lack of a big increase in crypto bets in Q1’24 partly results from the Bitcoin exchange rate rising, making players cautious with their bets. This trend is similar to the first quarter of the previous year,”
said Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.
The average crypto bet rose to 1.71 euro in Q1 2024 from 1.66 euro in Q4 2023, correlating with Bitcoin’s rate strengthening.
The average fiat bet stayed around 0.81 euro in Q1’24 and Q4’23. The average total bet remained constant at 0.93 euro since the second half of the previous year. The average crypto bet is double that of fiat, showing higher-income players prefer digital currencies.
The top five digital coins in iGaming have remained stable over the last two years: Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.
In Q1 2024, Bitcoin’s share dropped by 9.4 percentage points compared to Q4 2023. This may result from Bitcoin’s rising exchange rate and player caution.
Shares of other digital coins increased. Ethereum and Litecoin grew by 4.0 and 3.8 percentage points, respectively. Dogecoin rose to fourth place, overtaking Tether.
Vitali Matsukevich summarized:
“Digital currencies offer benefits like fast transactions and anonymity, attracting many players. Using cryptocurrencies in iGaming can boost operator profits despite volatility.”
With Bitcoin’s rate expected to rise after the Bitcoin Halving, average crypto bets and projected gains may see a significant impact. Reliable partners are crucial during such promising times.”