America, the land of the free, has a surprisingly turbulent history with gambling. Heading into 2026, a tension remains between players and policymakers, even with fiat currency sports betting. But while these have been on a journey of legitimisation, a shadow economy of crypto betting has been quietly on the rise. Unregulated? Yes. Illegal? It’s complicated.
Why the shadow economy is booming
The most important difference between regulated US casinos and unregulated ones is that the foreigners are bound by Know Your Customer (KYC) laws. These require Social Security numbers, bank linking, addresses, and sometimes a cooling-off period for withdrawals. Crypto casinos often have no KYC meaning it’s way more frictionless, anonymous, and more like the wild west.
Some crypto casinos have KYC. This in and of itself is a grey area, as overseas licensing bodies may require a little bit of KYC, but not as much. When looking at how to deposit on Razed Casino for example, the onboarding is a matter of minutes. No bank statement paper trails, no mortgage lenders judging you, and no withdrawal limits. For many Americans, this is what freedom looks like.
Marketing through the side door
Because these platforms cannot legally advertise on US television, they have mastered side door marketing channels. Influencer content is one popular channel, but so too is partnerships in industries that don’t rely on traditional broadcasting.
This relies on building legitimacy through high-profile associations. Esports and streaming are a great avenue for this because they’re less regulated yet have a tech-forward demographic. A recent high-profile example of this was the Razed-Heroic partnership, where it made sense for both parties.
The blurring of trading and gaming
While casinos and sportsbooks are male-dominated, it’s a broad age group. For crypto gambling, as it stands today, it’s mostly driven by the 18-35 age. It’s a sign that it won’t become fully mainstream until it’s adopted by the older demographic too, who fund a large part of the gambling industry.
There has been a blurring of boundaries between trading and gaming. CSGO players and viewers, like those within the Heroic sphere of influence, trade skins within their digital economy, though it’s not just loot boxes and digital assets, but also trading crypto itself. Some players like gambling with crypto because it means gaining exposure to the potential growth of those coins while it’s deposited in their gaming accounts. It’s a kind of 2-in-1 for some, though it introduces even more risks.
Regulatory context
Regulators struggle with crypto gambling. While the DOJ has ramped up enforcement of the Wire Act and the GENIUS Act (tightening controls on stablecoin issuers), the decentralized nature of crypto makes it impossible to ban. VPNs can be used to access international sites, while crypto wallet deposits are inherently frictionless. There may be some room to ban major exchanges from allowing transfers to some blacklisted (casino) wallet addresses – but this only scratches the surface.
As we move into 2026, it’s becoming clear that the crypto casino market is simultaneously becoming legitimized and yet illegitimized. We will see more sponsors and promotions of it, yet clarity around its legality becomes ever more confusing for players. While certain broadcasters and large organizations may step up in blocking such promotions, content itself is consumed in an ever more decentralized way, leaving some people to lean towards acceptance, legalization, and more pragmatism surrounding regulation.
