In a keynote address at the IAGR 2025 Conference, UKGC Chief Executive Andrew Rhodes sounded a strong warning: the use of cryptocurrencies in gambling—especially through unlicensed, offshore platforms—is no longer a distant regulatory challenge, but one moving into the near-term horizon.
“What once appeared to be a problem five years away may now materialise within the next 12 to 24 months.” – Andrew Rhodes
The scope of the regulated UK market
Rhodes laid out some key figures. According to the UKGC’s latest data, the UK adult gambling participation rate remains at around 48% of the adult population. The total UK market is valued at roughly £15.6 billion, with non-lottery remote (online) gambling accounting for about £6.9 billion. Within that, online casino games dominate: in 2023/24 the regulated remote casino sector (particularly slots) generated approximately £4.4 billion in revenue.
These numbers emphasise just how large, mature and regulated the UK market is—yet the emergence of crypto-based gambling is seen as a potential wedge, potentially pulling younger players away into unregulated territory.
What is the crypto challenge?
Rhodes pointed to the rising use of crypto assets among younger consumers (under age 40) as both a cultural change and a regulatory risk. He noted that operators licensed in the UK are not currently permitted to offer gambling with cryptocurrencies, yet:
“The practice is already widespread within the illegal market and could soon pose major challenges for regulators and policymakers.”
In other words: the legal, licensed industry has not embraced crypto gambling—but the illicit offshore sector has. And that divergence is creating a “generation-gap” in payment methods and channel preferences.
A related Freedom of Information search by UKGC shows that among people with gambling harms, 38% vs 6% (problem gamblers vs non-problem gamblers) owned cryptocurrencies. The report also found that 51% of those who invest in crypto did so because “it’s fun and thrilling,” and 43% said investment products “can be addictive.”
Why is crypto gambling concerning?
There are multiple red flags:
- Traceability & AML/CTF issues – Crypto transactions can be harder to trace, source of funds harder to verify and suspicious flows harder to detect. Rhodes stressed that “verifying the source and traceability of crypto funds and the resulting heightened risks of money-laundering and terrorist financing” are serious obstacles.
- Generation shift – Younger players may prefer crypto wallets and digital assets over traditional payment rails (cards, bank transfer). If the regulated market doesn't support their preferred method, they may naturally seek offshore alternatives.
- Regulatory arbitrage – When crypto-enabled operators are outside the UK’s licensing regime, players may slip into markets that lack the consumer protections, harm-prevention and AML rules of the licensed sector.
- Channel migration – The regulated market might appear less relevant or slower to adapt in payment-terms, giving illegal operators a competitive advantage. UKGC’s own research suggests that operator/regulatory practices may in fact drive customers to the black market.
Dealing with the black market
In his address, Rhodes also emphasised that regulators are stepping up enforcement on the illegal side. The UKGC’s illegal-gambling team has reported nearly 200,000 URLs to search engines in the current financial year (about half removed so far) as part of a “disrupt upstream” strategy.
In one source, the UKGC noted that remote gambling revenue rose 7% in 2023-24 versus 2022-23, and is up 63% compared to 2015-16.
Where does crypto-gambling stand in numbers?
Hard public data specifically isolating crypto gambling in the UK is still limited, because much of it is offshore or unlicensed. But we can look at proxy metrics:
- UKGC data shows problem gamblers are much more likely to own cryptocurrencies (38%) than non-problem gamblers (6%).
- According to one market overview, the UK online gambling segment (YSB) had remote GGY of £6.9 billion, with online casino games generating about £4.4 billion.
- The UKGC’s enforcement team has reported a > 10-fold increase in URL takedowns since April 2024, signalling the scale of upstream disruption.
While these figures don’t capture exactly how many bets flow through crypto, they expose the scale of the underlying regulated market and the enforcement pressure on the illegal side.
The regulatory crossroads
What emerges from Rhodes’s address is that the UK is at a regulatory inflection point. On the one hand, the UKGC maintains that licensed operators cannot currently offer crypto-based gambling. On the other, the growth in crypto usage among younger cohorts, and the ready accessibility of offshore crypto-betting sites, means the status quo may not hold for long.
Rhodes underlined that this is no longer just a tech or payments issue—it’s a question of whether crypto fits into the licensed environment and how. He remarked:
In short: Either regulators will evolve to incorporate crypto into the licensed market (with the necessary safeguards) — or crypto gambling will continue to pull more players into the illegal market, undermining regulatory goals, consumer protection and channelisation.
What happens next?
Several paths lie ahead:
- Regulatory reform – The UK Government’s ongoing review of the Gambling Act 2005 and associated consultation might address digital assets, alternative payments and modern payment flows. Operators and regulators will need to engage over whether crypto can be safely accommodated.
- Increased enforcement – The UKGC is sharpening its upstream approach: targeting search engines, payment providers, ISPs, suppliers and advertisers to restrict access to illegal sites. The crypto dimension adds new complexity (e.g., peer-to-peer transfers, anonymised wallets).
- Payment-rail re-design – Licensed operators may need to adapt by offering alternative payment methods that resonate with younger players, while still maintaining KYC/AML/safer-gambling standards. If they don’t, the risk of out-migration remains.
- Research & data – Robust data on crypto + gambling is still thin. The UKGC, through its research arm, acknowledges the need for deeper evidence into how high-risk behaviours and alternative payments intersect.
- Consumer awareness – As the regulator notes, many consumers are unaware of the risks of unlicensed crypto-gambling and how to identify safe platforms. Educational campaigns may play a role.
Concluding thoughts
The intersection of cryptocurrencies and gambling is evolving faster than many anticipated. For the UK market, the question is not only about if crypto gambling will be permitted under licence, but when and how. If the regulated sector fails to adapt, the pull of the offshore, unlicensed crypto‐enabled market may grow stronger and undermine the very regulatory channelisation and harm-prevention goals that the UKGC has long pursued.
As Andrew Rhodes aptly put it:
“This shift… will soon place sustained pressure on both regulators and government to decide whether and how crypto might fit into the licensed environment.”
How the UK chooses to respond will likely set the tone for other jurisdictions grappling with gambling, payments innovation and digital asset evolution. The clock is ticking.
