Crypto Casinos' Whale Problem: 60-97% of Revenue Comes from High-Stakes Bettors

Crypto casinos rely heavily on 'whales', high-stakes sports bettors and casino players, for revenue. According to Pavlo Krombet, Head of Business Development at Verifluence, this is no secret in the industry.

Krombet notes that while mass-market business may seem appealing due to a large number of individual deposits under $100, whales are responsible for 60-97% of total deposit volume at some major casinos. In particular, he cites Casinobet with 97.7%, Roobet with 66%, and Stake with 60%.

Krombet specifically examines Roobet's Q2 performance, where its deposit volume dropped 46% from $2.19B to $1.18B, but the deposit count barely changed, with an average deposit falling from $976 to $536. The share of deposits coming from $1M+ wallets also dropped from 81.3% to 66%.

Krombet concludes that crypto casinos need to either improve at retaining whales or develop a model that doesn't rely on them, as the current system may not be sustainable due to costs per user.