Onchain Gambling Hits $14B in Q1 2026, Stays Resilient Amid Pullback

Onchain gambling platforms saw $14 billion in transaction volume during Q1 2026, according to a report released by blockchain intelligence firm TRM Labs on June 10. This figure, while slightly below Q4 2025’s record $15 billion, highlights the sector’s resilience during a broader crypto market pullback. By comparison, prediction markets surged ahead, recording $36.6 billion in volume during the same period.

Onchain gambling has grown significantly in recent years, with total volume reaching $51 billion in 2025. TRM attributed this consistency to an expanding and loyal user base. A spokesperson noted, “This does not mean anything about concentration risk in itself, since there is quite a large gambling user base. It shows how consistent user activity can insulate an industry from a market pullback and in fact drive growth.” Notably, prediction markets also maintained elevated activity, climbing to $54 billion in volume in 2025.

Casual Users and High Rollers Drive Growth

TRM identified over 2 million unique wallets interacting with onchain gambling platforms between January 2022 and March 2026. User behavior was categorized into five groups, ranging from “Dabblers,” who make a handful of small bets, to “High Rollers,” who averaged $13,558 per bet and $378,000 in lifetime gambling volume. While high-stakes bettors dominated overall transaction volume, accounting for 91.8% since 2022, casual bettors have emerged as the fastest-growing cohort. Their monthly volume jumped from $17 million in January 2022 to $188 million by March 2026, a more than tenfold increase.

The report also highlighted the influence of “Daily Grinders,” users who engage in frequent, smaller transactions. This group’s volume grew 12x over the same period, underscoring the broadening of the user base beyond whales.

Financial Crime Risks and Regulatory Implications

Despite the sector’s growth, TRM pointed out distinct financial crime risks between gambling platforms and prediction markets. Gambling services, such as Stake and Rollbit, face significant exposure to money laundering risks, while prediction markets like Polymarket are under scrutiny for potential insider trading.

Both sectors are increasingly converging on shared stablecoin infrastructures, which could streamline regulatory oversight but also amplify compliance challenges. “Gambling services and prediction markets carry distinct inherent financial crime risks, and firms should calibrate controls accordingly,” the TRM spokesperson said.

These risks are part of a broader trend in crypto. TRM’s 2026 Crypto Crime Report revealed that illicit crypto flows surged to $158 billion in 2025, nearly double the previous year. However, as a proportion of total crypto activity, illicit volumes declined slightly to 1.2% in 2025 from 1.3% in 2024. This indicates that while criminal activity is growing in absolute terms, it is shrinking in relative significance.

Looking Ahead

As onchain gambling and prediction markets expand, the competition between the two sectors will likely intensify. The gambling sector’s ability to retain its user base through market volatility suggests it will remain a significant component of on-chain activity in 2026 and beyond. However, the rapid rise of prediction markets, coupled with their higher Q1 volumes, signals that they may continue to outpace gambling in the near term.

For regulators and market participants, the distinct financial crime risks tied to each sector warrant close attention. As platforms refine compliance measures, their ability to address concerns like money laundering and insider trading will likely shape their long-term viability and user trust.

Image source: Shutterstock