Crypto Casino: Massive ROI or Total Loss?

Crypto Casino

Alpha Affiliates is a direct advertiser working in the iGaming vertical since 2012.

During that time, we have launched 11 successful brands, and the number continues to grow. In this article, we want to discuss a topic many people need to pay more attention to — crypto casinos. Is there money out there?

Many market experts believe that crypto casinos are not the most viable business model and that it isn’t likely to bring big profits. So, why bother working with crypto casinos if the regular ones are proven to be profitable? We will answer this question, get to the bottom of the advantages and disadvantages of working with crypto traffic, and look closely at the statistics. After reading the article, you can objectively decide whether to enter this market.

The first casino where you could deposit with crypto appeared in 2011. The market was largely limited at the time because there were only two crypto coins: Bitcoin (BTC) and Litecoin (LTC). Today, there are hundreds of tokens available to Internet users, the most popular of which (Bitcoin, Ethereum, Tether) are used worldwide. The reach of crypto is rapidly growing, and crypto casinos are also gaining popularity.

Even though it’s been 11+ years since its emergence, crypto gambling is still considered a relatively new vertical, and only some webmasters have had time to figure it out completely. Some are afraid of the legal consequences as crypto is banned in some countries, others are afraid of getting low conversion rates, and others simply don’t want to try something new because fiat gambling also allows earning decent money.

Are cryptocurrencies the future of gambling?

The cryptocurrency market is growing, and it’s nowhere near exhausting its potential. More and more people are using crypto not only for savings and trading on the exchange but also to pay for goods and services. According to Bloomberg, about 900 million users regularly make purchases in crypto. By comparison, the U.S. population (as of May 25, 2022) is 336 million.

Digital coins are being gradually adopted at the state level. El Salvador and the Central African Republic have officially ratified Bitcoin as a means of payment. Several dozen more countries allow crypto to be used as a unit of account (Germany, Spain, Iran, Italy, Canada, etc.). Some countries even create national cryptocurrencies. China is a notable example, as it launched the digital yuan (e-CNY) in 2020.

Slot providers are also not staying away, introducing games available for crypto. Also, casinos provide fast fiat conversion for games that do not yet support digital coins. Moreover, crypto has set the trend for anonymity and swift, seamless payment delivery, which is appealing to many users. 

Why crypto casinos bring bigger ROI

Payment stability. The unsteady functioning of many fiat payment systems is one of the most common issues in online gambling. If players can’t make deposits, traffic goes down the pipe along with the money. In the case of cryptocurrency wallets, such situations are excluded.

Lowest deposit fees. Bank commission for deposits usually ranges from 1 to 3%. Meanwhile, when you transfer cryptocurrency, the fee amount doesn’t depend on the transaction size — in most cases, it’s just a flat fee set by the crypto network. It is simply cheaper for a player to deposit money at an online casino using digital coins.

The largest Bitcoin transaction was made on April 10, 2020. A certain “whale” sent 161,500 coins to another address. At the time, this amount was valued at $1.1 billion.

Fast payments. Crediting cryptocurrency to a wallet is almost instantaneous. Money arrives on balance within 1 minute with a minimum number of confirmations. At the same time, the usual fiat transfer can go to the bank card for 1 to 3 days.

A more solvent audience. Cryptocurrencies are primarily used by middle and upper-class people. LTV of such traffic is from 6 to 10+ times higher than that of players who come from Android. Obviously, it means higher CPA rates and earnings when working on RevShare. 

MRI-Simmons, customer profile of a crypto investor

Worldwide geo reach. Crypto casinos are not linked to a particular geo’s fiat currencies or payment systems. Players can deposit with BTC, ETH, USDT, and many others anywhere across the globe while keeping all payments anonymous. You only need an English interface to launch traffic from a certain geo. The only exception is Asian countries, where you need dedicated localization and support.

Hype. Cryptocurrency is one of today’s hottest trends since it is technological, convenient, efficient, and modern. Media coverage and natural interest in the topic attract more and more users. Additionally, news about the legalization of digital coins, the development of new ones at the state level, and cases of social media influencers who made a fortune on blockchain transactions warm up the audience.

No tax charges. It is no secret that in Europe, the tax authorities closely monitor bank transactions along with the payment of taxes. In some countries, there are restrictions on the deposit amounts and the number of spins, and additional fees are continuously introduced. On the contrary, deposits and withdrawals in cryptocurrency allow players not to worry about any of the above factors.

What are the downsides?

Still a new market. Despite its rapid growth, the cryptocurrency market is still developing. While practically everyone uses fiat money, digital coins are only so familiar to a few people. Moreover, cryptocurrencies are still banned or illegal in some countries.

Cryptonews.com, data as of 2022

Difficulty in retaining players. Despite (or even due to) high solvency, crypto casino players are incredibly picky about freebie offers and the overall level of service. A successful product must have enough bonuses (including free giveaways), fast support, and instant withdrawals. These factors dramatically affect NGR and, accordingly, the webmaster’s earnings.

Not all traffic sources are effective. If you are used to pushing Facebook or TikTok traffic, it might be challenging to work with crypto casinos. As practice shows, the most profitable crypto traffic comes from SEO and Google Ads (PPC). Such users are proven to lose much money painlessly and provide high income on RevShare.

Social networks, thematic forums, and sites like steemit.com, a blockchain-based social network, can also be quality traffic sources — but you must find the right approach!

High entry threshold. The target audience is relatively small, so leads are expensive even in the sources with qualitative traffic. Subsequently, the costs are fully recouped by high CPA rates (up to €500) or RevShare earnings, but a webmaster needs substantial working capital initially. So, going in with 1-2 thousand dollars in stock is unlikely to pay off. We advise putting in at least 5 thousand dollars, yet we remind you that everyone has different traffic.

The most profitable model of cooperation with crypto casinos is RevShare because the LTV rates of crypto players are higher on average. It’s also important not to chase instant earnings: the more initial investments are made in traffic, the more consistent and long-term profits you will have over time. 

High market volatility. Statistics show that the situation in the crypto market has almost no effect on conversion rates, but it largely impacts the LTV of players. Also, you should understand that the income you get as a percentage of casino profits will fluctuate depending on the current market situation.

The conversion rate of Bets.io only increases over time. This is due to the growing fame of the brand and its development as a product.

Anonymity’s dark side. Not all gambling advertisers behave honestly toward players. Some take advantage of the anonymity that cryptocurrency provides in order not to pay out winnings. Users consider this possibility, so they may be wary of such products.

Words vs. facts: showcasing the example of Bets.io

Words should always be confirmed with facts, so we suggest wrapping up the theoretical part and moving on to a tangible case. Par exemple, let’s look at our flagship product — Bets.io crypto casino. 

In November 2022, Bets.io took the “Rising Star Operator of the Year” award at the SiGMA Europe.

Offer: Bets.io.

GEO: Worldwide.

Currencies: BTC, BCH, DOGE, ETH, LTC, USDT, XRP, TRX, ADA, BNB, USDC, BUSD, and over 500+ C2C positions.

Languages: EN, DE, FR, ES, JA, TR, AR.

Payment models: CPA, Revshare up to 50%, Hybrid.

Statistics by geo from January to May 2023 (values are presented for groups of 200 or more people):

The numbers speak for themselves. Despite the decreasing flow of registrations, the average conversion rate is at 30% in all countries. And in some countries, the figure is even more than 50%.

Instead of a conclusion: are crypto casinos worth it?

If you have read this article up until now, it’s evident that crypto gambling has definitely interested you. Anonymity, fast and uninterrupted payments, and the general digitalization trend make crypto casinos more convenient and appealing for players. And the average deposit amount, which is 6-10+ times higher than in fiat casinos, will not leave any webmaster indifferent.

If you are ready to move from contemplating straight to action after reading this article, register on the Alpha Affiliates platform. Bets.io is fully prepared to convert your traffic into profits!

Read more: Choosing the Right Crypto Trading Platform: Factors to Consider and Things to Avoid

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