The Rise of Crypto Payments in Online Gaming
Cryptocurrencies have experienced a remarkable upward trajectory over the past decade, with Bitcoin’s value increasing from under $400 at the end of 2014 to over $100,000 at the end of 2024. This growth has not only been reflected in the cryptocurrency market but also in online gaming. Coinciding with the rise of igaming in regulated markets around the world, cryptocurrencies have become a popular way for players to pay and play in online casinos and sports betting. A report by Techreport found that the crypto gambling market size was around $250 million in 2021, with interest in Bitcoin casinos quadrupling between 2019 and 2021. The rapid rise and popularity of cryptocurrency-based prediction market Polymarket, which took in billions of dollars in volume in 2024, further demonstrates the large public enthusiasm for wagering with crypto.
The Benefits of Cryptocurrency Payments in Igaming
The benefits of cryptocurrency payments in igaming are numerous. Firstly, they offer speed, privacy, and reliability, which are paramount in the igaming industry. “Cryptocurrency has evolved from a niche digital asset into a global financial instrument, with growing adoption across industries, including igaming,” said Natalia Lifshits. “IGaming operators have been early adopters of crypto payments due to their borderless nature, security, and ability to provide fast payouts. In 2025, we are seeing an increased number of igaming platforms integrating cryptocurrencies as they look to tap into a global audience that values privacy, instant transactions, and financial autonomy.”
How Cryptocurrency Payments Work in Igaming
While the benefits are clear, few understand how cryptocurrency payments and deposits actually work in practice. Cryptocurrencies are digital currencies that combine cryptography with blockchain technology. They facilitate peer-to-peer transactions without the need for an intermediary, with transfers verified by the network and publicly stored in the blockchain. The use of anonymous wallet addresses in place of personally identifiable information also hides the identity of the sender. The digital nature of crypto payments makes them instantaneous, and cryptographic algorithms render them secure and reliable despite being peer-to-peer.
Dynamic Address Generation and Payment Processing
The payment process is structured into three main stages: dynamic address generation, payment processing, and settlement to the merchant. * Dynamic address generation involves the system generating a unique deposit address for the specific transaction, which is then provided to the customer along with payment details to proceed with the transaction. * Payment processing involves the customer transferring the specified cryptocurrency amount to the unique address provided. * Settled to the merchant, the received funds are processed by the system, and if the operator has opted for auto-conversion, the cryptocurrency is converted into their preferred currency at this stage.
Overcoming the Challenges of Crypto Payments in Igaming
One of the major challenges businesses in igaming face in offering cryptocurrencies as a payment method is fees. Cryptocurrency fees represent one of the biggest challenges in offering cryptocurrencies as a payment method – turning what would be a no-brainer into a burden that can affect margins. However, NOWPayments has ways of mitigating high transaction fees, such as facilitating so-called ‘Layer-2’ solutions, like the Lighting Network, which processes bitcoin transactions off-chain before batching payments together for settlement on the main blockchain.
Solutions for Igaming Operators
Lifshits said that implementing an option for customers to pay via cryptocurrency is easier than it may sound. Little to no technical work is needed on the part of operators; setup involves integrating a crypto ‘gateway’ via an API, a website plugin, or a simple payment widget. NOWPayments supports 300+ cryptocurrencies, including BTC, ETH, USDT, and other high-liquidity assets. Operators can also choose to auto-convert volatile assets into stablecoins, reducing exposure to market fluctuations while still benefiting from crypto adoption.
Customization and Education
Customization has emerged as a key igaming trend in the past few years as operators attempt to stand out and differentiate their offerings in a highly competitive industry. NOWPayments put customisation front and centre. Key customisation options include a highly flexible auto-conversion feature, mass payouts (automated withdrawals to multiple winners or affiliates in one batch), and casino-specific enhancements. NOWPayments is recognised as one of the fastest and most secure crypto payment gateways on the market. However, unlike many competitors, NOWPayments is fully customisable to meet the specific needs of operators. Recently, one of their partners approached them with a request to accelerate deposit processing for their players. In response, they increased transaction speed by 80%, achieving an average deposit processing time of just ~30 seconds.
Navigating Regulatory Concerns
With low-fee crypto payment options bringing the benefits of crypto payments to igaming sites without the barriers, what’s stopping wider adoption in the industry? Lack of education on the available options plays a big part, hence NOWPayments’ focus on educating the industry. Another major concern is regulation. The somewhat murky reputation of cryptocurrency and disparate worldwide approaches to regulating it creates uncertainty for operators. Regulations in the US differ from state to state, while crypto payments aren’t legal in Brazil, meaning tailored regional approaches are paramount. However, regulation around cryptocurrency is becoming clearer. The European Union implemented the Markets in Crypto-Assets (MiCA) regulation in 2024 to standardise the bloc’s regulatory approach to cryptocurrency. The Gambling Commission in the UK has released specific guidance for operators on dealing with cryptocurrency, which states that operators must pay particular attention to anti-money laundering regulation and ensuring that the source of funds is clear if choosing to accept cryptocurrency payments.
Staying Compliant and Adapting to Change
With ambiguous regulations around the world, maintaining transparency and documentation and adhering to licensing rules is vital. NOWPayments helps operators stay compliant by offering transaction monitoring, anti-money laundering (AML) compliant tools, and fiat conversion features where needed. As cryptocurrency continues to cement itself as a legitimate, safe, and realistic payment method, the growth of gaming with crypto is inevitable. The value for operators who do choose to allow cryptocurrency payments for their igaming sites is evident – and, when done right, highly lucrative.