Research by the Financial Conduct Authority (FCA) in the UK found that 68% of younger cryptocurrency traders compare dealing in cryptocurrencies with gambling. This is not surprising, given that most gamblers and traders are risk-loving.
US businessman and investor Warren Buffett recognized the similarities between the two activities when he said,
“Something like bitcoin, it is a gambling token, and it doesn’t have any intrinsic value, but that doesn’t stop people from wanting to play the roulette wheel.”
However, Buffet’s opinion is a little simplistic. While there are risks associated with cryptocurrency trading and gambling, when risks are measured and mitigated, there are benefits to be had. We will look at this in more detail, starting with insights into the regularity landscape for cryptocurrency trading and gambling in the US.
The regularity landscape for crypto and gambling
There remains a volatile relationship between crypto trading organizations and the U.S. Congress. In the coming months of 2024, there are likely to be court cases and pivotal decisions regarding crypto. However, it’s unlikely that any major legislation will be in place before 2025 at the earliest.
This lack of clarity is frustrating for the crypto industry. Operators are keen for more progress to be made.
Similarly, gambling regulation is also somewhat disjointed in the US. Any applicable regulation is determined at the state level. Overall, 24 US states have legal commercial casinos in place in some form. Six states, New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia have fully legal online casinos operating. Nevada permits Internet poker, and Rhode Island has legalized online casinos but has yet to put them into operation.
Legislative uncertainty is not the only thing that cryptocurrencies and gambling share. They also have a symbiotic relationship that we are discussing here. So, how have crypto and gambling combined, and what does the future hold?
How crypto and gambling have combined
Given the uncertain legal landscape and the diversity of opinions about crypto and gambling, it’s not surprising that they have developed a close and beneficial relationship. In fact, crypto has revolutionized the gambling industry.
The legalities of this revolution are complex and vary between states. So, players and operators must monitor the situation carefully to stay within the law. They must also understand the risks, which, similar to crypto trading, include volatility and potential platform issues.
The benefits of the crypto casino revolution outweigh the associated risks. These include faster transactions, enhanced security, transparency, traceability, and accessibility for everyone.
The growing potential of this partnership
Cryptocurrencies are here to stay. As leadership expert Farshad Asl said,
“Currencies evolve, mirroring our society’s progress. Cryptocurrency, data, skills, trust, time, and social capital—these aren’t merely trends but reflections of a new paradigm. Adapt, learn, and leverage them, for success in the modern world demands this broadened understanding.”
With this in mind, the relationship between crypto and gambling is likely to flourish. The use of crypto allows casino operators to reach a global audience, so you will see more crypto casinos enter the market in the US and internationally.
For this to happen, some hurdles need to be overcome. These hurdles include regulatory challenges, price volatility, and the requirement for further education in the use and benefits of cryptocurrencies.
Overall, the future of the relationship between gambling and cryptocurrencies looks positive and will only be enhanced by ongoing technological developments.
