Key Takeaways
- Onchain gambling remained resilient despite the crypto downturn, generating $14 billion in Q1 2026, just below its record $15 billion in Q4 2025.
- The sector reached $51 billion in total volume during 2025, making it one of the largest and fastest-growing segments in crypto.
- High Rollers remain the dominant force, representing just 6% of gambling wallets but accounting for nearly 92% of personal-wallet gambling volume.
Despite a prolonged cryptocurrency market correction that weighed on trading activity across much of the digital asset industry, onchain gambling continued its rapid ascent, generating $14 billion in volume during the first quarter of 2026, according to new research from blockchain intelligence firm TRM Labs.
The sector has emerged as one of crypto’s fastest-growing segments, sustaining elevated activity levels even as broader markets cooled. TRM found that quarterly gambling volume reached a record $15 billion in Q4 2025 before remaining near those highs in Q1 2026.
While prediction markets such as Polymarket captured headlines throughout 2025 and early 2026, onchain gambling quietly expanded into a $51 billion annual industry.
The report highlights how gambling platforms maintained momentum through multiple market cycles, fueled less by speculative trading and more by a growing base of repeat users.
User Retention, Not New Entrants, Drives Growth
Unlike many crypto sectors that depend heavily on new users entering the market during bull runs, onchain gambling’s expansion is increasingly being driven by returning participants.
TRM’s analysis shows that new wallet inflows peaked in 2022 and have since fallen by roughly 54%. However, wallets that had previously interacted with gambling platforms grew fourfold over the same period.
By Q1 2026, the ratio of new users to returning users had narrowed significantly, from 9:1 in early 2022 to just 1.4:1.
The data suggests that gamblers are not only returning more frequently but are also spending more over time. During the 2022 bear market, existing users reduced average bet sizes but maintained consistent activity.
As market conditions improved, average wagers increased, helping drive overall volume growth.
Major sporting events have also become important catalysts for engagement.
TRM found that activity spikes around events such as the Super Bowl, March Madness, and the FIFA World Cup, with dormant wallets reactivating temporarily to place bets before returning to inactivity.
The report identifies five key user groups, ranging from casual bettors and event-driven participants to “Daily Grinders” and high-value “High Rollers.”
Although High Rollers represent only around 6% of gambling wallets, they account for nearly 92% of personal-wallet gambling volume since 2022.
Stablecoins and Low-Cost Networks Fuel Expansion
Infrastructure improvements have played a major role in the sector’s resilience.
Stablecoins now account for approximately 70% of all onchain gambling volume, with USDT and USDC dominating activity.
On the TRON blockchain, which has become the leading network for crypto gambling, stablecoins represent about 94% of gambling transactions.
TRON’s popularity stems from its low transaction costs, fast settlement times, and deep USDT liquidity. Annual gambling inflows on the network reached $19.3 billion in 2025, giving it roughly 38% of the total market share.
Polygon has also gained significant traction, posting its strongest quarter on record in Q1 2026 and approaching TRON’s scale for the first time.
Analysts attribute Polygon’s growth to its low-cost infrastructure and strong stablecoin ecosystem, which have attracted both casino-style gambling platforms and hybrid wagering products.
Meanwhile, Bitcoin’s role in the sector has diminished sharply. Once accounting for approximately 36% of gambling volume in 2022, Bitcoin accounted for only around 2% by 2025 as users migrated to faster, cheaper blockchain networks.
Regulatory and Criminal Risks Remain
As onchain gambling reaches new heights, regulators and compliance teams face growing challenges.
TRM identified three primary illicit risks associated with the sector: gambling platforms being used as money laundering infrastructure, fraudulent platforms masquerading as legitimate casinos, and cyberattacks targeting gambling operators.
The report highlights several cases involving criminal organizations and sanctioned entities allegedly using gambling platforms to obscure the origins of illicit funds.
TRM Labs also pointed to major scams such as the $33 million ZKasino exit scam and the $41 million theft from Stake.com attributed to North Korea-linked Lazarus Group hackers.
Despite these concerns, TRM argues that the sector’s ability to grow through both bull and bear markets demonstrates a level of structural demand that increasingly operates independently of crypto price movements.
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Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
