Crypto gambling generated $14 billion in Q1 2026 despite a broader market downturn, while prediction markets overtook gambling volume for the first time, according to TRM Labs.
Prediction Markets News
On-chain gambling generated $14 billion in volume in Q1 2026, according to a June 10 report from blockchain intelligence firm TRM Labs. The figure held near record levels despite a broader crypto market correction.
The quarter also marked a first. Prediction markets overtook on-chain gambling for the first time on record. They posted $36.6 billion in volume against gambling's $14 billion.
Both sectors grew fast throughout 2025. Gambling reached $51 billion for the year, while prediction markets climbed to $54 billion. Quarterly gambling volume peaked at $15 billion in Q4 2025, a figure more than five times the $2.6 billion recorded in Q1 2021.
Stablecoins Anchor 70% of Gambling Volume
Stablecoins explain much of the sector's strength. They account for about 70% of all on-chain gambling volume since 2022. That equals $117 billion of the $169 billion total. On TRON, USDT makes up 94% of gambling flows. A stable deposit holds its value from bet to withdrawal, which shields players from price swings.
TRM Labs said retention drove the growth, not new users. New wallet inflows have dropped about 54% since late 2022. Returning wallets grew around four times over the same period. A TRM spokesperson said that the surge came from the "sticky and expanding activity of a loyal user base."
The firm studied more than 2 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 personal wallet volume since 2022. Casual Bettors are now the fastest-growing group. Their monthly volume rose 11x to $188 million between January 2022 and March 2026.
TRON Leads as Bitcoin Share Falls to 2%
The chain mix also shifted. 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. It came close to TRON's $6 billion. Bitcoin's share fell from about 36% in 2022 to around 2% in 2025. High fees pushed bettors to cheaper chains.
TRM Labs’ report also outlined criminal risks. Gambling platforms face heavy money laundering exposure. The firm cited the $33 million ZKasino exit scam and $1.2 million in USDT flows tied to sanctioned groups. Prediction markets face a different threat related to insider trading.
TRM said the two sectors now share the same stablecoin rails. It urged firms to match their financial crime controls to each sector's distinct risks.
Related Article: Bernstein Says Prediction Markets Are Entering Institutional Era
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