The founder of Yolo Group, the parent firm of a handful of prominent crypto gambling brands, has poured cold water on the notion this segment of the industry generates more than $80bn (£59.4bn) a year in gross gambling revenue (GGR).
In a post on his blog published today, 29 May, Tim Heath said he took issue with data released by anti-online crime platform Yield Sec and published by the FT in April, in which it was claimed crypto operators were generating $81.4bn in GGR – a fivefold increase since 2022.
Heath wrote: “I believe, as do many other investors and analysts in the space, that Yield Sec’s figure is a bit of a wild overstatement.”
He added that Yield Sec was “absolutely right to flag the rapid expansion of crypto gaming” but that it “doesn’t mean we should accept every big-sounding number as gospel”.
Yolo Group’s founder pointed to data from crypto gambling analysis firm Tanzanite, which suggested the entire sector in 2024 was worth $10bn to $11bn in GGR.
This calculation was gleaned from on-chain analysis of 20 leading crypto operators – including the likes of Stake, Roobet, Shuffle and Rollbit – across the Ethereum, Tron, Solana and Binance networks.
Tanzanite admitted, though, that it’s difficult to ascertain GGR for hybrid operators like 1xBet, Dafabet, Bovada and Pinnacle that mainly take deposits in fiat currencies but also accept crypto as a form of payment.
“Personally, I’d place the value [of the crypto gambling market] somewhere in the $20bn–$30bn range when you factor in the swelling ranks of innovative firms leveraging next-gen technologies to enhance the gaming experience,” Heath continued.
He also expressed surprise at the FT publishing a story with Yield Sec’s estimations in its headline.
“It’s surprising, to say the least, to see such a reputable publication like the Financial Times run with a number that doesn’t hold up to scrutiny, at least without speaking to a few industry players.
“But perhaps that’s to be expected in industries as fast-moving and disruptive as this one.”
Paul Leyland, partner at research firm Regulus Partners, told Earnings & More in April that he thought the market is worth between $16bn and $20bn in GGR, though he caveated that figure by saying the industry is “extremely complicated”.
“For example, how do you treat someone who pays in fiat, but wins in crypto. That would mean crypto would have a negative value footprint,” he said to the independent newsletter.
Meanwhile, ex-BlockBet CEO and former managing director for UK and Ireland at evoke Alexis Zamboglou, wrote in a LinkedIn post last month that crypto gambling “is not worth anywhere near $81.4bn” Yield Sec estimated.
In April, Tanzanite published a breakdown of the market in series of posts on X.
The company reported that Stake’s global site was the clear market leader in terms of on-chain deposits, with $12.6bn processed in 2024.
This was followed by Roobet ($1.9bn), BC.GAME ($1.8bn), Roobit ($1.6bn) and Shuffle ($1.1bn). Heath’s Yolo Group, which includes Bitcasino.io and Sportsbet.io, was in fifth spot with $937.7m in on-chain deposits last year.
EGR has contacted Yield Sec for comment but has yet to receive a response.
The post Tim Heath: Recent estimate of crypto gambling’s scale is “a wild overstatement” first appeared on EGR Intel.
Yolo Group founder puts the market’s value at $20bn-$30bn in terms of GGR, while highlighting a “disconnect between mainstream reporting and insider knowledge”
The post Tim Heath: Recent estimate of crypto gambling’s scale is “a wild overstatement” first appeared on EGR Intel.