Crypto Betting Is Here: What Banks, Bettors, and Regulators Need to Know

The entire gaming ecosystem; operators, regulators, bettors and the payment gateways are grappling with the emergence of  crypto betting, writes Davidson Abraham 

The intersection of cryptocurrency and online sports betting is no longer a futuristic concept—it’s happening now. As digital assets continue to gain traction, a growing number of betting platforms are beginning to accept cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins such as USDT for deposits and withdrawals. This shift is driven by tech-savvy users, rapid transactions, and the increasing involvement of fintech firms offering secure and compliant payment solutions.

In states like Colorado and New Jersey in the United States of America, where online sports betting is legal and regulated, platforms have begun experimenting with crypto payments. These states have relatively progressive regulatory frameworks that support financial innovation, creating a favorable environment for fintech-betting partnerships. Companies like BitPay, MoonPay, and Coinbase Commerce act as intermediaries—handling crypto-to-fiat conversions and embedding anti-fraud mechanisms to help betting platforms remain compliant. This enables users to fund their accounts directly with crypto while shielding platforms from regulatory breaches.

However, banks remain cautious. Despite the growing interest, most traditional financial institutions are reluctant to facilitate transactions between crypto wallets and gambling platforms. Their concerns are rooted in anti-money laundering (AML) laws and know-your-customer (KYC) compliance requirements. The pseudo-anonymous nature of many crypto transactions raises red flags about traceability, source of funds, and potential fraud. Until clear, unified federal guidelines are introduced—especially from bodies like the SEC, FinCEN, and the U.S. Treasury—banks are likely to maintain their distance.

Globally, this trend is also expanding. In regions with limited banking access but strong mobile and crypto penetration, such as parts of Africa and South America, crypto betting is emerging as an accessible alternative. On the other hand, some jurisdictions ban gambling entirely, pushing users toward grey or offshore platforms that operate with little oversight.

Platforms like Stake.com and Roobet, though not fully regulated in the U.S., have gained popularity through VPN use and aggressive crypto marketing. Meanwhile, regulated giants like FanDuel and DraftKings have yet to integrate crypto directly but are reportedly exploring options, pending clearer regulation.

For regulators, the challenge lies in balancing innovation with risk. For bettors, the promise is speed, accessibility, and decentralization. And for fintechs, the opportunity is to bridge a compliance gap that banks still hesitate to close.

Crypto betting is here—and it’s only getting started.