In our last post we noted that at least half of all Bitcoin transactions in June 2013 were for online gambling on the gambling site Satoshi Dice. We were interested to see what has happened since Satoshi Dice was acquired in early July.
Thanks to some useful blockchain data analysis that The Genesis Block shared with us, we now have an answer. The Bitcoin blockchain is essentially a public ledger of all prior Bitcoin transactions. So The Genesis Block looked at transaction volume for 27 Bitcoin addresses known to be used by Satoshi Dice. They found that since the acquisition, dollar-denominated wager volume on Satoshi Dice has held steady.
In the first chart, we see that dollar-denominated wagers in August 2013 are flat to slightly up since June (dark blue line).
At the same time, the number of daily wagers has fallen since April 2013 (light blue line in next chart).
As can be seen in the next chart, the reason for the slight increase in dollar-denominated volume of wagers is an increase in average wager size denominated in dollars (dark blue line).
It is likely that the drop in the number of daily wagers on Satoshi Dice (2nd chart) is due to the growth of new entrants in the Bitcoin online gambling space. For example, according to an article over at Coindesk , new startups PrimeDice is reportedly processing over a million bets each day and Just-Dice has processed 90 million bets. And they just two of many new Bitcoin gambling startups.
This means that overall, online gambling with Bitcoin has continued to grow since June in dollar-denominated terms.