Singapore is cracking down on one of the most famous industries—crypto casinos. Sun Xueling, Minister of State for Home Affairs and Social & Family Development, took center stage during a parliamentary session. While promoting cashless gambling, she noted that digital tokens had little use in the industry. The global crypto-gambling market is growing rapidly. It reportedly surged to $70 billion in the first half of 2024. It is now projected to reach a valuation of $150 billion by the end of 2030.
Overview of the Ban
Singapore may make a final call to ban the use of cryptocurrencies in casinos altogether. Malicious activities such as money laundering have been associated with digital currencies. Customers often deposit their funds only to engage in illicit activities by evading the authorities’ radar.
Sun has introduced a bill that will update Singapore casinos’ regulations by giving the Gambling Regulatory Authority more power to approve new betting tools. It aligns with the global trend and follows the conclusion of a report by the UN Office on Drugs & Crime. The report cited that cryptocurrencies and online casinos were increasingly being used to launder money.
Broader Implications
Suffice it to say, a ban on cryptocurrencies in the gambling market will lead to a reduced use of digital currencies. It essentially takes away one source where holdings could be applied. Casino operations may not necessarily feel the heat in the long term considering interested customers will engage via different payment modes. If there is any decline, it will be due to the elimination of those who were leveraging platforms for machine learning.
The global gambling landscape will only react when other countries take a cue from Singapore’s actions. A few countries have already taken a step in that direction. For example, Brazil banned cryptocurrencies in gambling in April 2024 to enhance transparency and bring down money laundering. Australia also banned crypto for online betting. It included digital wallets and credit-linked cards with a primary focus on helping people keep their gambling habits under control.
Long-Term Effects on Online Casinos in Singapore
At the heart of all this, only online casinos that heavily rely on cryptocurrencies will experience significant long-term effects. Those with multiple payment options are likely to thrive despite this massive ban on digital tokens. However, it may impact the appeal to international players, who will now have to worry about currency conversion. Explore potential regulatory changes and adaptations of online casinos in Singapore for compliance and innovative payment solutions.
Conclusion
Singapore’s prohibition of cryptocurrency in casinos is a measure that has been implemented in other countries in response to concerns regarding money laundering. The industry will have a slight effect from the ban, but it could still thrive across the world given there are several takers of good quality entertainment.
