Inside the hidden, high-risk world of crypto gambling

Young people like David, who are always online and attracted by flashy offers, are getting caught up in the growing trend of crypto casinos. These gambling platforms operate in a regulatory gray zone, offering the familiar appeal of blackjack, sports wagers, and fast-paced slot games, all while dodging many of the safeguards found in traditional online gambling.

Crypto casinos have spread aggressively across social media, thriving on the borderless nature of the internet. Many are licensed in small island nations with lax oversight, allowing them to function with minimal restrictions. Despite being off-limits in countries such as the United States, they’ve become hotspots for teens, young adults, and people struggling with addiction — who not only gamble but sometimes earn money promoting the same sites that harm them.

A New York Times investigation found that the industry relies on a marketing model built to exploit vulnerability. Influencers are turned into recruiters, risky play is rewarded, and young audiences — among the most susceptible to addiction — are routinely targeted. Some players said they began gambling in high school, and others admitted to stealing or taking out loans to fuel their betting.

David, who asked to go by his middle name, said he blew through more than $12,000 in childhood savings the moment he turned 18. He converted it to crypto, doubled it, then lost every dollar. He later borrowed $4,000 and lost that too. “I lost sight of what money actually is,” he said.

A rapidly expanding underground economy

As legal online gambling has spread across the U.S., crypto casinos have positioned themselves outside these systems, running offshore and using cryptocurrency to bypass traditional financial controls. Their ability to grow faster than regulators can react has left lawmakers scrambling. Many sites barely verify users’ identities and advertise openly on social media. With a VPN and fake credentials, tech-savvy teens can gamble undetected — often right under their parents’ noses.

Just eight years ago, crypto casinos were obscure corners of the internet. Now they are multibillion-dollar operations. Giants like Stake and Roobet have made deals with global sports leagues and celebrities including Drake and Snoop Dogg.

To accelerate this growth, casinos have cultivated a massive network of streamers who gamble live for hours each day, building communities and funneling viewers to the sites. Through affiliate programs, streamers receive a cut of every wager placed by someone who signs up with their referral code — essentially turning influencers into casino marketers. Flashy lifestyles, giveaways, and nonstop gambling streams stoke viewers’ desire to imitate them.

In August, Drake joined popular streamers Adin Ross, xQc, and Trainwreck for a three-hour gambling broadcast on Stake. The reach of these influencers, especially among young men, has helped normalize extreme betting.

The mechanics of a marketing machine

The Times reviewed hundreds of hours of gambling streams, internal messages from casino representatives, and blockchain data to understand how the system functions. Interviews with casino employees and marketing affiliates confirmed what many suspected: the system is designed to encourage constant gambling, regardless of the risk.

Viewers spent over 12 million hours watching the top 100 gambling streamers in just one month. Casinos paying creators multimillion-dollar deals receive a constant influx of new players in return.

Beyond the high-profile partners are tiers of streamers who receive daily gambling funds — called “fills” — to use on camera. If they lose the money, they earn nothing that day. Others gamble with their own funds, hoping to build an audience. Some streamers mislead viewers altogether: they place bets with casino-supplied money that they are not allowed to keep, creating the illusion of risk-taking that doesn’t actually exist.

To draw viewers in, streamers maintain leaderboards, run giveaways, and hype up massive wagers. Fans who want to climb the ranks often spend staggering amounts — some more than a million dollars in a single month.

Little oversight and easy workarounds

When early crypto casinos emerged, they stood out by ignoring rules meant to protect problem gamblers. Self-exclusion — a standard tool to help people stop gambling — was often dismissed. Many platforms required little or no identity verification. Only a few years ago, an academic study found that 37 of 40 major crypto casinos accepted deposits without confirming who the user was.

Even as verification measures have improved, they are easily bypassed. Some streamers openly guide followers through the process in private chats. A secondary market has even emerged for fully verified accounts created with stolen or purchased IDs.

David, before turning 18, used false identities to gamble on multiple casinos and even had a VIP host offering him perks. Streamers in the United States routinely broadcast their sessions despite being in a restricted region, sometimes with the help of casino employees.

The industry has also tapped YouTube personalities and Twitch stars with massive teenage followings. Streamers who made their names playing video games or pulling off pranks now promote crypto casinos to millions of young fans. Some, like N3on, have streamed gambling content before turning 21 — from within states where online gambling is illegal.

Experts warn that this environment normalizes addictive behavior. Several influencers have openly admitted to gambling problems during their streams.

Regulators struggle to respond

Crypto casinos have existed for close to a decade, but regulators still don’t have a clear model for controlling them. In the U.S., gambling laws vary widely by state, and almost none account for cryptocurrency. Enforcement actions against offshore gambling have been limited, and many casinos lack physical addresses or any identifiable contact at all.

Some states have issued cease-and-desist orders, but without broad federal action, the sites remain widely accessible. Lawsuits have been filed alleging misleading marketing and illegal gambling operations, but these cases can take years to resolve.

Meanwhile, counselors and addiction specialists say they’re seeing a surge in young people struggling with crypto-related gambling. Social media spreads the content faster than support systems can respond.

“We can’t keep up,” said Robin Singh of New York’s Problem Gambling Resource Center. “The problem spreads far faster than the solution.”

Disclaimer: This is a rewritten summary. The original article was published by The New York Times and can be found at https://www.nytimes.com/