This report presents SOFTSWISS’s H1 2024 “State of Crypto” data on how the April 2024 Bitcoin halving affected the iGaming market. For the evergreen explainer on the halving and what it means for online gambling, see our companion guide on Bitcoin halving and iGaming. The figures below are SOFTSWISS’s, as reported for the first half of 2024.
The second quarter of 2024 was marked by a historical event: the Bitcoin halving. Did this event affect the iGaming market? SOFTSWISS shares insights in its quarterly “State of Crypto” overview.
What is Bitcoin halving?
The Bitcoin halving occurs approximately every four years, or every 210,000 blocks, reducing the reward for mining new blocks by 50%. Since Bitcoin’s launch in 2009, there have been four halving events: in 2012, 2016, 2020 and 2024 (CoinLedger lists every cycle). These events are crucial for maintaining Bitcoin’s scarcity and controlling inflation, ensuring the total supply never exceeds 21 million coins. Historically, each halving has been followed by a rise in Bitcoin’s price due to reduced supply and increased scarcity.
According to blockchain experts, the recent halving may lead to new regulations ensuring fairness and anti-money-laundering measures in the crypto-driven iGaming sector. The halving is also expected to increase Bitcoin’s value, potentially benefiting Bitcoin-friendly iGaming brands, while the adoption of crypto-friendly solutions can enhance player trust and transparency.
Post-halving iGaming market overview
SOFTSWISS experts analysed data gathered from around 250 crypto-friendly brands powered by the company that engaged in crypto transactions during the first half of 2024. The index increased by 13% since the beginning of the year.
In absolute terms, the Total Bet Sum (encompassing both fiat and crypto) grew by 46.6% in the first part of 2024 compared to the same period the previous year. The Total Bet Count showed an even greater increase, surpassing 51.7% in H1 2024 compared to H1 2023.
Ongoing analysis since early 2022 indicates that fiat bets are experiencing more growth than crypto bets. Comparing the first half of 2024 to the same period in 2023, the Fiat Bet Sum increased by 65.2%.
Andrey Starovoitov, Co-CEO at SOFTSWISS, shares his opinion: “The increasing wealth of the middle class boosts disposable income and spending on entertainment. Technological advancements make online games and various payment methods more and more accessible. The expansion of regulated markets where iGaming is being legalised provides a stable and secure environment for both operators and players. These elements together foster a thriving industry, encouraging innovation, competition, and a broader reach to diverse audiences.”
A cautious approach to crypto gaming
In the first half of 2024, the Crypto Bet Sum showed a modest 2.3% increase compared to the same period of the previous year. As fiat rates grew much faster than crypto rates, the share of crypto bets noticeably decreased in 2024, settling at 20.6%. At the same time, the H1 2024 Crypto Bet Count fell by more than 20% year-on-year.
Andrey Starovoitov adds: “The anticipated impact of the Bitcoin halving on the market, coupled with the strengthening of the Bitcoin exchange rate in the first half of the year, may lead to a more cautious attitude among players towards using cryptocurrencies. However, the average crypto bet is increasing, positively impacting the overall Crypto Bet Sum. As Bitcoin’s exchange rate fluctuates, we expect some players to adopt a more careful approach to using their Bitcoins.”
Analysing crypto bets reveals that around 93% are facilitated via the in-game currency conversion tool, which allows operators to engage players with cryptocurrency assets in games originally designed for fiat. The proportion remained stable through the first half of the year, and operators who adopt the tool are gaining a competitive edge.
Bitcoin’s share drops
Bitcoin, Litecoin, Ethereum, Tether and Dogecoin make up the top five most popular cryptocurrencies in iGaming. This list has remained stable over the years, with some shifts in the rankings.
Bitcoin experienced a decline of around 23 percentage points in the first half of 2024 compared to H1 2023 — likely attributable to the strengthening Bitcoin exchange rate and players’ commitment to holding it. The shares of other cryptos increased: Litecoin and Tether grew by 8.9 p.p. and 7.1 p.p. respectively, with Tether climbing to fourth place, overtaking Dogecoin.
Andrey Starovoitov summarises: “Confirming experts’ anticipations, the iGaming industry is experiencing active growth, with a fifth of all bets coming from the crypto segment. The intriguing fluctuations in Bitcoin’s position promise both increased profits and a more cautious attitude toward spending. However, every challenge brings its own opportunities. The key to success lies in adapting by investing in employee training and software development, integrating crypto processing, and ensuring your platform remains secure throughout the process.”
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing solutions for the iGaming industry. It holds a number of gaming licences and provides comprehensive software for managing iGaming projects, including the Online Casino Platform, the Game Aggregator, the Affilka affiliate platform, Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS introduced the world’s first Bitcoin-optimised online casino solution. Its team is based in Malta, Poland and Georgia.
For the bigger picture on crypto in online gambling, see our guide to cryptocurrency gambling and our roundup of the top crypto casinos.
