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iGaming networking specialists | Head of business development at Verifluence, Pavlo Krombet, has published his findings as they relate to the crypto casino sector's heavy reliance on so-called "whales". These are essentially high stakes sports bettors and sometimes casino players. The underlying data comes from VIP-Grinders' Crypto Casino Market Report.
The crypto casino industry has witnessed substantial growth over the past few years, fueled by stifling regulatory and tax structures imposed by some countries.
Krombet notes that it really is no secret that crypto casinos are very dependent on whales.
"It looks like mass-market business until you follow the money. 70–75% of individual deposits are under $100. But at some major casinos around 0.2% of wallets can generate 60–97% of total deposit volume."
Krombet offers some specific examples involving $1M+ wallets that include:
- Casinobet — 97.7% of wallet volume
- Roobet — 66%
- Stake — 60%
"And it changes casino economics, affects regulation, marketing spend and how honest industry is about who actually generates the money," he points out.
He points specifically at Roobet.
"In Q2 its deposit volume dropped 46%, from $2.19B to $1.18B, but deposit count barely moved: 2.24M vs 2.21M.
"Avg deposit fell from $976 to $536, while share coming from $1M+ wallets dropped from 81.3% to 66%.
"You can keep millions of deposits and still lose the part of business that actually moves the money.
"Casinos probably need to pick a side: get much better at keeping whales, or build a model that doesnt depend on them.
"Or it just doesn't make any sense because of the costs per user..."
- Gilbert Horowitz, Gambling911.com
