In the past few days, reports have surfaced claiming that crypto-based illegal gambling has increased in Asia leading to the rise of the industry there. The reports also claim that across the last five years the betting amounts have become larger as traditional payment methods have been replaced by crypto assets. Illegal gambling is thriving in Asia as a report revealed the market to be worth around 400 billion US dollars in 2018.
Is crypto responsible for illegal gambling?
While online gambling might have increased across recent years, the use of digital assets in this industry has remained scarce. Moreover, DApp-based gaming has also seen little interest. Furthermore licensed operators only accept bets from regions where online gambling is legal. This suggests that illegal gambling only accounts for a minute fraction of the market.
As per Sulim Malook, the founder of a licensed Bitcoin lotto, the majority of gambling activities in Asia have little to do with local sporting markets and even less with cryptocurrencies.
He reasoned that many clubs have partnerships with sports betting facilities. He added that countries such as China, India, and Pakistan, can easily open online betting accounts without the need for crypto. He added that many betting sites don’t even accept Bitcoin as a direct deposit.
On the other hand, fiat currencies are the preferred medium for gambling and it is totally possible that illegal gambling is just an excuse for regional authorities to impose a ban on cryptocurrencies, especially in Asia where the industry is still small.
The volatile nature of cryptocurrencies makes it difficult to use them for daily trading activities. Furthermore, Traditional credit card operators provide facilities that cryptocurrencies cannot provide at the moment.
Featured image by pixabay.
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