Crypto corner: A post-Covid acquisition tool

We have seen a surge in crypto gambling usage globally this year, and with good reason. Early adopters of crypto, such as Brazil, Colombia, Argentina, and the Asian markets have been reaping the benefits as player awareness has developed – and we’re now likely to see it becoming a key acquisition tool in the coming months.

Dedicated users of crypto are typically millennials or slightly older – with the majority falling in the 25-45 age bracket. The typical crypto user is likely to be financially well-off and acclimatised to technology, which means that they use crypto gambling for its benefits – especially when it comes to instant transactions and cashing-out.

During global Covid-19 enforced lockdowns, the flexibility that crypto gambling offers has been a boon to those in emerging markets, especially those with less developed banking regimes. Operators are now moving into these markets as they have earmarked its potential due to the player base already being well-versed and comfortable with the technology.

While crypto has certainly shown some volatility during, and due to, the pandemic but has since bounced back and now surpasses pre-Covid-19 levels.

As expected, it has also benefited significantly from a surge in demand from many emerging markets – especially across Asia, Latam and Africa. Just like the explosion in esports’ popularity, I believe this year’s lockdown will likely accelerate the process of crypto adoption.

Simply put, people are starting to learn more about the benefits of using crypto for gambling. Crypto transactions are instantaneous and secure, and players have the freedom to deposit funds in the currency of their choice.

Operators offering cryptocurrency transactions to their players not only serves to overcome regional and demographic barriers, but also allows players in emerging markets with less developed financial infrastructures to get in on the action.

Crypto also sits separately to the typical closed world of finance, which means that cash-out and transactional processes are much faster. I’d argue that offering customers the option to utilise cryptocurrency as a deposit and withdrawal method is no longer a niche or nice-to-have – it’s a necessity.

So many people now prefer to transact that way – and that number is only going to grow as we work through the full impact on economies in post-Covid-19 society. As sports betting returns, any operator who has not used the downtime to seriously review how to engage with new players and move into new markets will be on the back foot.

Offering crypto is the key to securing many new players, who will demand it if they are to sign up, as well as better supporting existing customers in many of the most exciting emerging markets.

However, when it comes to mainstream adoption, there’s one final hurdle – Perception.  There is a lot of misinformation about cryptocurrency out there. In particular, the implications of offering it to customers from a compliance and/or AML perspective are routinely misunderstood.

I’m continually surprised to find operators raising unnecessary red flags, denying themselves the ability to legitimately grow their businesses.

Digital wallets, for example, have evolved to such an extent that third-party payment providers are now able to offer cryptocurrency gateways that solve any need for operators to even handle crypto, which means all transactions are received in fiat.

Of course, this is still relatively new technology, and is only just being introduced – but looking at the bigger picture, I am confident that we are finally arriving at the point that we’re ready to see crypto go mainstream as a payment option in gambling.

That’s not to say it will become the product of choice for the average retail punter who is unaccustomed to the online sector. However, when it comes to being a highly valued acquisition tool for the right emerging markets – it’s an opportunity that is too good to miss.

From an operator’s perspective, failing to offer crypto is an unnecessary hinderance to their ability to customer acquisition and new market entries. It’s that simple. With the new normal continuing, that’s not going to change.

Glen Bullen is a veteran of the egaming industry, gaining over 20 years’ experience in senior commercial roles. He has driven revenue growth and delivered new products across global markets for a number of the sector’s leading operators, game suppliers and platform providers. He is responsible for leading all sales and marketing activities at DAOWallet.