A silent shake-up is coming to Europe’s thriving crypto gambling scene. At the center of this change is a big question many are starting to ask: What will happen to crypto casinos if Tether — the most widely used stablecoin — gets banned under new EU rules like MiCA?​

The implications of the Tether EU ban could reach far beyond just compliance, potentially disrupting player deposits, casino liquidity, and even affiliate revenues.​

Stablecoins: The Backbone of Crypto Gambling

Stablecoins have become integral to the European crypto economy, particularly in online gambling. Recent research indicates that stablecoins such as USDT, USDC, and DAI now account for the majority of crypto-gambling transactions in Europe.​

By 2025, stablecoins constituted approximately 58% of all crypto deposits at Curacao-licensed online casinos, a significant increase from less than 30% two years prior.​

One crypto casino reported a 347% year-on-year rise in stablecoin deposits, while Bitcoin deposits declined by 22% in the same period, underscoring this shift.​

Among stablecoins, USDT and USDC dominate, collectively comprising around 89% of all stablecoin gambling transactions.​

USDT remains popular due to its ease of trade and compatibility with major networks like Tron. USDC is rapidly gaining traction, perceived as safer, more regulation-compliant, and better suited for fast, low-cost transactions.​

However, new regulations could challenge this dominance. Under the EU’s MiCA rules, stablecoins must adhere to strict guidelines to be permitted on regulated platforms. USDT has faced scrutiny over its reserve management and could be banned from EU-licensed platforms by late 2025 if it fails to meet MiCA’s standards. Consequently, some casinos are transitioning to USDC or euro-backed stablecoins.​

These regulations signify a substantial shift. While stablecoins are valued for their speed and stability, their future in European gambling hinges on compliance with MiCA’s requirements and potentially other similar regulations.​

Understanding MiCA: The EU’s Crypto Regulation

MiCA is the EU’s initiative to establish clear rules for the burgeoning crypto market. The regulation aims to protect users, stabilize the system, and mitigate risks associated with unregulated digital assets, particularly stablecoins.​

MiCA categorizes crypto-assets into three groups:​

• Utility Tokens (UTs): Used to access a product or service within a blockchain ecosystem.​
• Asset-Referenced Tokens (ARTs): Backed by a basket of assets such as commodities or currencies. Many stablecoins fall into this category.​
• E-Money Tokens (EMTs): Backed by a single fiat currency (e.g., USD, EUR).​

For instance, USDC is likely considered an EMT since it is fully backed by U.S. dollars.​

Issuers must register and comply with specific rules to offer stablecoins in the EU. These include maintaining full reserves, undergoing regular audits, and providing transparent information to users about the stablecoin’s operations.​

The European Banking Authority imposes stricter rules on widely used stablecoins, including daily transaction limits and additional checks.​

For services utilizing stablecoins, such as crypto casinos, MiCA delineates a clear distinction between compliant and non-compliant tokens. Platforms using coins like USDT may need to reconsider their options if those coins cannot meet MiCA’s standards. By late 2025, any stablecoins not approved could be prohibited in the EU, compelling casinos to adopt alternatives like USDC or euro-backed stablecoins.​

Impact of MiCA on Crypto Casino Operators

MiCA introduces both opportunities and challenges for crypto casinos.​

Utilizing stablecoins that fail to meet MiCA standards, such as USDT, could pose problems for casinos with EU licenses. EU exchanges and payment systems might delist USDT if it doesn’t comply with reserve and audit requirements. This scenario could severely impact casinos reliant on USDT unless they transition to approved options like USDC, which is more likely to align with MiCA’s criteria.​

Casinos with offshore licenses, such as those in Curacao or the Isle of Man, might continue using non-compliant stablecoins without immediate repercussions. However, EU regulators intend to exert pressure on payment providers and advertising networks to cease supporting or promoting these platforms within the EU.​

This could bifurcate the market: some casinos will adhere to MiCA and utilize approved stablecoins to access EU players, while others may persist in less regulated environments. Nonetheless, the latter group faces an uncertain future, especially if more countries adopt similar regulations or intensify control.​

Preparing for the Future: Compliance Strategies and Market Shifts

As MiCA regulations come into effect, crypto gambling sites must brace for significant changes. A prudent strategy involves adopting stablecoins more likely to comply with MiCA’s rules.​

USDC, with its transparent reserve audits and regulatory alignment, emerges as a strong candidate. Euro-pegged stablecoins like EURe may also gain broader acceptance, particularly if supported by European payment infrastructure and exchanges.​

Another approach is collaborating with licensed stablecoin providers who can assist in adhering to reserve and user information requirements. Some casinos might explore decentralized payment solutions, though MiCA’s influence could extend to DeFi platforms in future regulatory updates.​

Players will likely experience changes as well. Certain stablecoins may no longer be available on EU-licensed platforms, while new coins — backed by stricter regulations — become the norm. Although this may restrict some user preferences, it could enhance the overall stability and security of gambling deposits.​

The broader industry is already responding. On of the major providers reported that altcoins, led by USDT, increased from 25% to 47% of all crypto bets between 2023 and 2024, and operators now actively monitor compliance risks when selecting supported tokens.​

Simultaneously, traditional financial giants like Visa and BlackRock are developing stablecoin-based infrastructure for gambling and payment sectors, indicating institutional interest in the space.​

MiCA is poised to transform the operation of stablecoins in European crypto casinos. Casinos that proactively transition to approved stablecoins and comply with EU regulations will be better equipped for the forthcoming changes. For players, these developments promise safer and more transparent gambling experiences. This evolution signifies a maturing and increasingly regulated crypto-gambling industry.