In March 2024, Bitcoin reached an all-time high, approaching 70,000 euros per coin. How does this impact the iGaming market? As a technology company with over 15 years of experience and an innovator in cryptocurrency iGaming software development, SOFTSWISS shares its expectations in its quarterly review.
More than 220 brands supported by the company carried out cryptocurrency transactions during the first quarter of 2024, which represents a 12% increase compared to the previous quarter.
SOFTSWISS experts evaluate data collected from cryptocurrency-friendly brands using extrapolation, comparative and correlative analysis methods.
SOFTSWISS shares analysis of the iGaming market: revealing expected growth
The size of the global online gaming and sports betting industry is expected to grow significantly and surpass €170 billion by 2032, according to Statista. Based on data from SOFTSWISS, the iGaming market has demonstrated a stable pattern of growth year after year.
In absolute terms in euros, Total Bet Sum grew by 5.8% in the first quarter of the year compared to the last quarter of 2023. Analyzing the year-on-year increase, comparing the first quarter of this year with the same period last year, the growth is more impressive, showing an increase of 47.2%.
Simultaneously, Total Bet Count in both fiat and cryptocurrencies exhibited a slightly larger gain in Q1 2024 compared to the previous quarter, surpassing 6.1%. The year-on-year increase in this indicator is even more notable, revealing an increase of 57.2%.
The popularity of iGaming in recent years has been driven by its global reach and accessibility due to constant technological advancements. On the one hand, the quality of internet connectivity continues to increase, while on the other, new payment methods are emerging, simplifying payment procedures.
Detailed quarterly analysis, ongoing since early 2021, reveals that fiat currency betting is experiencing more substantial growth compared to cryptocurrency betting.
In the first quarter of this year, Fiat Bet Sum increased by 6.9% compared to the last quarter of 2023, while the increase in Crypto Bet Sum was 2.4%.
The more active growth of fiat betting has led to a slight decrease in the share of cryptocurrencies. In the first quarter of 2024, the share of cryptocurrencies in Total Bets Sum was 24.4%, decreasing 0.8 percentage points compared to the last quarter of 2023.
What is the state of cryptocurrencies in iGaming?
Analyzing cryptocurrency bets, it is crucial to highlight that almost 93% of them are facilitated through the in-game currency conversion tool, which is gaining traction. This mechanism allows operators to engage players with cryptocurrency assets in games initially adapted only for fiat currencies. Operators who adopt such options are gaining more competitive advantages in the market.
While the first three months of Crypto Bet Sum show moderate growth of 2.4% compared to the previous quarter, year-on-year analysis shows a 20.8% increase. Crypto Bet Count remained unchanged in Q1’24 compared to the previous quarter’s indicator. At the same time, the indicator increased by 21.3% year on year. The numbers speak for themselves, showing consistent interest among players in cryptocurrency gaming.
“The lack of a substantial increase in the number of bets on cryptocurrencies during the first quarter of this year can be partially attributed to the significant increase in the Bitcoin exchange rate during this period. Thus leading players to be more cautious with their bets on cryptocurrencies. This trend mirrors the situation in the first quarter of the previous year. That is, when the Bitcoin exchange rate rose after a fall at the end of 2022”, comments Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.
What distinguishes the average cryptocurrency bet?
The average bet on cryptocurrencies increased to 1.71 euros in the first quarter of the year, compared to 1.66 euros in the last quarter of 2023. This growth is correlated with a significant strengthening of the Bitcoin rate during the first quarter of 2024. Total average bet has remained constant since the second half of the previous year and is equal to 0.93 euro.
Notably, the average bet on cryptocurrencies is double that of fiat. This indicates that digital currencies are preferred by higher-income players.
Why did Bitcoin share fall?
The top five most traded digital currencies in iGaming have remained stable over the past two years, with minor changes in the ranking order. The top still includes Bitcoin, Ethereum, Litecoin, Dogecoin and Tether.
In the first quarter of 2024, Bitcoin experienced a significant decline of 9.4%. compared to the last quarter of the previous year. This can be attributed to the strengthening of Bitcoin’s exchange rate and players taking a more cautious approach towards it.
In contrast, shares of other digital currencies have increased. Ethereum and Litecoin showed 4.0% growth. and 3.8%, respectively, during the same period. Simultaneously, Dogecoin rose to fourth place in the rankings, leaving Tether behind.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarizes: “The benefits of employing digital currencies, such as fast transactions and anonymity, still attract many players. Embracing cryptocurrencies in iGaming can increase operators’ profits despite their volatile nature. If Bitcoin is expected to strengthen following the Bitcoin Halving, average stake and earnings could take a noticeable hit. During these promising times, it is crucial to have trusted and experienced partners to navigate the path to success.”
About SOFTSWISS
SOFTSWISS is an international technology company that provides software solutions for managing iGaming projects. The team of experts, which numbers more than 2,000 employees, is based in Malta, Poland and Georgia.
SOFTSWISS holds multiple gaming licenses and provides complete software solutions for iGaming. The company’s product portfolio includes the Online Casino Platform, the game aggregator with thousands of casino games, the Affilka affiliate platform, the Sports Betting Platform and the Jackpots aggregator.
In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimized online casino solution.
