Cryptocurrency gambling sites are disrupting Malta’s €1.5 billion gaming industry – what you need to know about this unstoppable trend that’s leaving regulators playing catch-up
In the shadow of Malta’s ancient fortifications, a digital revolution quietly transforms the island nation’s thriving gambling industry. USDT casinos — online gambling platforms that operate using Tether, the world’s largest stablecoin — are rapidly gaining popularity among Maltese players, despite existing in a regulatory grey area with authorities racing to adapt.
Industry insiders reveal that an estimated €300 million in Maltese gambling transactions occurred via USDT and other cryptocurrencies last year alone, a staggering 400% increase from just two years prior. Yet many local players remain unaware of the potential risks — and extraordinary benefits — these platforms offer compared to traditional euro-based online casinos.
“What we’re seeing is unprecedented,” explains Dr. Jonathan Borg, a digital finance expert at the University of Malta. “USDT casino represents the most significant disruption to Malta’s gambling ecosystem since the Malta Gaming Authority was established in 2001.”
So what exactly is driving this revolution, and how will it affect Malta’s position as Europe’s gambling capital? The answers might surprise you.
The Rise of USDT: Malta’s New Digital Gambling Currency
When Robert Abela’s government established the Malta Digital Innovation Authority in 2018, few could have predicted how rapidly cryptocurrency would infiltrate the nation’s gambling sector.
Tether (USDT) is a “stablecoin” cryptocurrency designed to maintain a steady value of one US dollar. Unlike Bitcoin and other volatile cryptocurrencies, USDT offers gamblers the stability of traditional currency with the benefits of blockchain technology — primarily speed, privacy, and lower transaction fees.
For Maltese players, the appeal is obvious. A 35-year-old software developer from Sliema (who requested anonymity) told this reporter: “I switched to USDT casinos last year and won’t go back. Withdrawals that took days now take minutes, and the fees are practically non-existent.”
The Malta Gaming Authority (MGA) currently licenses over 300 online gambling companies, generating over €1.5 billion annually and employing more than 8,000 people directly. But USDT casinos operate largely outside this framework, creating tensions with established industry players.
Joseph Cuschieri, former CEO of the MGA, admitted in a recent interview that “cryptocurrency gambling presents significant regulatory challenges.” Current MGA leadership declined to comment for this article, but internal documents obtained exclusively by Times of Malta indicate the authority is drafting new guidelines specifically addressing cryptocurrency gambling platforms.
Why Maltese Players Are Flocking To USDT Casinos
The shift toward USDT casinos isn’t just about technology — it’s about fundamental advantages that traditional euro-based platforms struggle to match:
1. Lightning-Fast Transactions
Traditional online casinos typically process withdrawals in 1-5 business days. USDT casino withdrawals often complete in under 10 minutes.
“Time is money,” explains Maria Farrugia, a professional poker player from Gozo. “When I win €5,000 in a tournament, I can have it in my wallet almost instantly with USDT. With traditional casinos, I’m waiting days while watching market opportunities pass by.”
2. Enhanced Privacy
In a small community like Malta, where everyone knows everyone, the privacy offered by USDT transactions holds particular appeal.
“Malta is a village, essentially,” says Dr. Borg. “There’s cultural value in keeping your gambling activities private, especially for high-stakes players. USDT provides that layer of discretion that traditional banking simply cannot.”
3. Lower Fees
USDT casinos typically charge transaction fees of less than 1%, compared to 2.5-5% for credit card deposits at traditional online casinos.
For high-volume Maltese players, this difference translates to thousands of euros saved annually. One VIP player calculated savings of €12,400 last year alone from reduced transaction fees.
4. Global Accessibility
With Malta’s growing international population, USDT casinos eliminate currency conversion fees that expatriates face when using euro-denominated platforms.
“As an American living in Malta, I was losing 3-4% on every transaction due to conversion rates,” explains James Miller, an American expatriate residing in St. Julian’s. “USDT solved that problem completely.”
The Dark Side: Risks That Authorities Fear Most
Not everything about this revolution is positive. The Malta Financial Services Authority (MFSA) has issued three warnings about unregulated cryptocurrency gambling in the past 18 months.
Christian Sammut, cybersecurity expert and CEO of NOVO Technologies, warns: “The same features that make USDT casinos attractive also create vulnerabilities. Without proper regulation, players have limited recourse if something goes wrong.”
The risks include:
Regulatory Uncertainty
USDT casinos, much like non gamstop casinos, typically operate under licenses from jurisdictions like Curaçao or Costa Rica, which offer less rigorous player protections than Malta’s MGA licenses.
“It’s a wild west situation,” explains Dr. Borg. “These platforms exist in a regulatory grey area that Malta hasn’t fully addressed yet.”
Security Vulnerabilities
While blockchain technology is inherently secure, the platforms themselves may not be. Several high-profile hacks of USDT casinos occurred in 2023, including one incident where players lost an estimated $22 million.
Addiction Concerns
The instant gratification of USDT gambling raises addiction concerns. Traditional casinos have mandatory cooling-off periods for withdrawals, which some experts believe help prevent problem gambling behaviours.
Caritas Malta reported a 32% increase in gambling addiction cases in 2023, with cryptocurrency gambling specifically mentioned in nearly half of the new cases.
Malta’s Gaming Industry At A Crossroads
The rise of USDT casinos presents an existential question for Malta: adapt or risk losing its position as Europe’s gambling hub.
The Malta Gaming Authority collects approximately €75 million annually in licensing fees and taxation from regulated operators. As players shift to platforms outside MGA jurisdiction, this revenue stream is threatened.
Economic analyst Martin Pisani of Grant Thornton Malta estimates that “for every €10 million that moves from regulated to unregulated platforms, Malta loses approximately €1.7 million in direct tax revenue.”
This potential loss comes at a particularly challenging time for Malta’s economy, still recovering from pandemic disruptions and facing increased EU scrutiny of its financial services sector.
Inside A USDT Casino: What Players Experience
To understand the phenomenon firsthand, this reporter created accounts at five leading USDT casinos popular with Maltese players (using test funds for research purposes only).
Most USDT casinos feature comprehensive FAQ sections that serve as both educational resources and strategic anchors for players new to cryptocurrency gambling. These FAQs typically cover everything from “What is USDT?” to detailed guides on wallet setup and troubleshooting transaction issues. Unlike traditional casinos, whose help sections focus primarily on game rules, USDT casino FAQs often dedicate 60-70% of content to cryptocurrency onboarding — a critical difference that helps convert curious visitors into active players.
One platform allowed deposits within two minutes of registration, with no identity verification required for transactions under 2,000 USDT (approximately €2,000).
The games themselves are similar to traditional online casinos, with slots, table games, and live dealer options. However, USDT casinos often feature innovative “provably fair” games that use blockchain technology to verify the randomness of results — something traditional casinos cannot offer.
“It’s like comparing a smartphone to a landline,” says Thomas Camilleri, a former developer for a Malta-based gaming company who now works with blockchain gambling platforms. “Once players experience the speed and transparency of USDT casinos, returning to traditional platforms feels archaic.”
The Legal Battleground: Malta’s Regulatory Response
The Maltese government faces a complex challenge balancing innovation with consumer protection. Three approaches are emerging:
1. The Sandbox Approach
Sources within the Malta Digital Innovation Authority suggest they’re developing a regulatory sandbox where USDT casinos can operate under special licensing while regulators study the sector.
“We’ve seen successful regulatory sandboxes for fintech in Malta,” explains Dr. Borg. “A similar approach for crypto gambling would maintain Malta’s innovative edge while providing basic consumer protections.”
2. Full Integration
The more ambitious approach would integrate cryptocurrency gambling fully into Malta’s existing regulatory framework, legitimising USDT casinos but requiring them to meet the same standards as traditional operators.
This would require significant amendments to the Gaming Act, but could position Malta as the global leader in regulated cryptocurrency gambling.
3. Restriction and Prohibition
The most conservative approach would restrict or prohibit cryptocurrency gambling, forcing Maltese players to use regulated euro-denominated platforms.
“This approach would be the easiest to implement but would likely fail in practice,” says Dr. Borg. “Digital innovation can’t be easily contained by geographical borders.”
What This Means For Maltese Players And The Future
For Maltese players considering USDT casinos, experts recommend a cautious approach:
- Use only platforms that voluntarily adhere to anti-money laundering practices
- Start with small deposits until comfortable with the platform
- Enable two-factor authentication for all accounts
- Use reputable cryptocurrency exchanges for converting euros to USDT
- Keep detailed records of all transactions for tax purposes
“The technology is here to stay,” concludes Dr. Borg. “The question is whether Malta will lead the regulatory response or follow others.”
Meanwhile, traditional casino operators are not standing still. Several Malta-based gaming companies are developing hybrid platforms that combine traditional payment methods with cryptocurrency options.
Betsson Group, one of Malta’s largest gambling operators, recently posted job openings for blockchain developers, signalling their intention to incorporate cryptocurrency functionality into their platforms.
Beyond Gambling: The Bigger Picture For Malta
The USDT casino phenomenon is just one example of how cryptocurrency is reshaping Malta’s economy. From real estate transactions to retail payments, digital currencies are increasingly visible in everyday Maltese life.
The decisions Malta makes regarding cryptocurrency gambling will likely influence its approach to digital finance more broadly.
“This is a watershed moment,” explains Finance Minister Clyde Caruana in a recent parliamentary address. “Malta must balance innovation with responsibility, or risk losing both our competitive advantage and our reputation for strong governance.”
For a nation that has successfully reinvented itself multiple times — from a strategic military base to a tourism hub to a financial services centre — the cryptocurrency revolution represents the next potential evolutionary step.
Whether USDT casinos represent an opportunity or a threat depends largely on how Malta chooses to respond to this rapidly accelerating trend. What’s certain is that the phenomenon cannot be ignored.
As one gaming executive put it: “The future of gambling is digital, borderless, and powered by cryptocurrency. The only question is whether that future will be centred in Malta or somewhere else.”