On-chain gambling generated $14 billion in volume during Q1 2026, holding near record levels despite a broader crypto market correction. Prediction markets surpassed gambling for the first time, posting $36.6 billion in the same quarter, according to a report from blockchain intelligence firm TRM Labs.
On-chain gambling volume remained near record levels in Q1 2026, according to a June 10 report from blockchain intelligence firm TRM Labs. The research examined activity across eight blockchains from January 2022 through March 2026, highlighting sustained gambling activity despite weaker conditions in the broader crypto market.
The quarter also produced a milestone. Prediction markets overtook on-chain gambling for the first time on record, posting $36.6 billion in volume against gambling’s $14 billion.
Both Sectors Grew Through 2025
Both sectors expanded throughout 2025, according to TRM Labs. Gambling reached $51 billion for the year, while prediction markets climbed to $54 billion, according to CoinMarketCap Academy.
Quarterly gambling volume peaked at $15 billion in Q4 2025. That figure is more than five times the $2.6 billion recorded in Q1 2021.
Stablecoins Anchor 70% of Gambling Volume
Stablecoins account for about 70% of all on-chain gambling volume since 2022, according to TRM Labs. That equals roughly $117 billion of the $169 billion total.
On TRON, USDT makes up 94% of gambling flows. Stablecoins reduce exposure to cryptocurrency price volatility between deposits and withdrawals, helping explain their dominance across crypto gambling platforms.
Returning Wallets Drive Growth as New Activity Slows
TRM Labs found that returning wallets and increased spending per wallet were the main drivers of gambling volume growth. New wallet inflows dropped about 54% since late 2022, while returning wallet activity grew roughly fourfold over the same period.
Although new wallets still outnumbered returning wallets in Q1 2026, existing participants accounted for an increasing share of activity. A TRM spokesperson attributed the surge to the “sticky and expanding activity of a loyal user base.”
High Rollers Dominate Personal Wallet Volume
TRM Labs studied more than two million personal wallets and split them into five groups. High Rollers average $13,558 per bet and $378,000 in lifetime volume. They make up 6.3% of wallets but drive 91.8% of the $57 billion in personal wallet volume recorded since 2022.
Casual Bettors are the fastest-growing group. Their monthly volume rose elevenfold to $188 million between January 2022 and March 2026.
TRON Leads as Bitcoin’s Share Falls to 2%
The blockchain mix shifted considerably over the period. TRON’s annual gambling inflows hit $19.3 billion in 2025, or 38% of the total. Polygon posted its highest quarterly volume on record in early 2026, approaching TRON’s $6 billion quarterly figure.
Bitcoin’s share fell from about 36% in 2022 to around 2% in 2025. TRM Labs linked the decline to high transaction fees and Bitcoin’s transaction structure, which make frequent, small-value gambling payments less practical than on cheaper networks.
Criminal Risks Remain a Concern
TRM Labs identified several financial crime risks, including gambling platforms used for money laundering and fraudulent operators. The report cited the $33 million ZKasino exit scam and approximately $1.2 million in transactions between Hamas-linked addresses and a gambling platform, identifying patterns consistent with potential money laundering.
Prediction markets face different risks, particularly potential insider trading. TRM Labs said the two sectors increasingly rely on the same stablecoin payment infrastructure but require financial crime controls tailored to their distinct risk profiles.
