ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Internet Gaming may Open Crypto Doors
Crypto Channel
Share

Internet Gaming may Open Crypto Doors

Tom LydonJul 27, 2022
2022-07-27

With bitcoin prices faltering this year, it’s difficult for less experienced investors to think about issues such as crypto usage cases.

Still, the expansion of the usage case, including adding more industries and venues that will accept crypto as a form of payment, is integral to the long-term crypto investment thesis. Additionally, the expanded use case can provide support for crypto-correlated stocks and exchange traded funds, such as the VanEck Digital Transformation ETF (DAPP C+).

One frontier ripe with potential for multiple DAPP components is internet gaming, also known as iGaming or online casinos. While iGaming is a new concept in the U.S. and is currently permitted in just a handful of states, it’s highly popular in an array of markets outside the U.S., including plenty in which crypto adoption is high.

“Applying blockchain transactions in iGaming significantly reduces payment processing costs and could potentially enhance operators’ earnings before interest, taxes, depreciation and amortization (EBITDA) margins by as much as 8ppts,” wrote Roth Capital analyst Edward Engel. "Over $3bn in gross gaming revenue (~5% of global iGaming GGR) is already wagered using crypto, and the regulatory landscape is improving both globally and in the U.S. Meanwhile, rapid growth in gray markets is fostering innovative solutions from major B2B suppliers, and we see this accelerating adoption in white markets.”

In the U.S., states that permit iGaming and online sports betting currently do not allow crypto as a method of funding accounts. That could change over time, and some gaming companies are open to the idea. For example, DraftKings (NASDAQ:DKNG) CEO Jason Robins said last year that his company would like to accept crypto as a form of payment, but state regulators stand in the way.

In the countries that allow online casino operators to accept crypto, there are significant advantages, underscoring a potentially compelling intersection between crypto and wagering.

“Advantages of accepting crypto deposits rather than traditional payment channels include 1) significantly lower payment processing costs, 2) transaction acceptance rates of 99.9%+, 3) instant withdrawals, and 4) negligible chargebacks. Given the advantages blockchain has over traditional payment channels, crypto deposits are more efficient and secure as they reduce reliance on third-parties while facilitating ‘trustless’ transaction,” added Engel.

Currently, the bulk internet wagering permitted in crypto occurs in the form of bitcoin or ether — the largest digital currencies. Should that remain the case, it could have long-term positive implications for DAPP components with links to those cryptocurrencies.

For more news, information, and strategy, visit the Crypto Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X