Note: Much of the information included in this article is taken from a presentation by Glenn Yamagata, vice president of Data Science and Economic Analysis and senior consultant with Problem Gambling Solutions, Inc., executive director of the Oregon Council on Problem Gambling, and member of the National Council on Problem Gambling Board of Directors.
For many of us, digital assets, including cryptocurrencies, are something we’ve heard of but don’t fully understand. The same is true for Oregon Health Authority problem gambling treatment providers: 94% reported needing additional training to better address clients engaged in non-traditional forms of gambling, such as digital asset trading. Some providers indicated that as many as half of their clients are already involved in these activities. Therefore, developing a basic understanding of digital assets and how they function can be valuable, much like a therapist treating individuals who wager on sports benefits from knowing key sports betting terminology.
Common digital assets include e-books and digital art that are accessed online. However, the digital assets discussed in this article refer specifically to blockchain-enabled assets, such as cryptocurrencies. The blockchain is a type of electronic ledger with key features such as transparency, security and decentralization, which can be complex to understand. The essential point is that blockchain technology has made it possible to create new forms of digital assets that, in some cases, enable gambling-like behavior and may contribute to gambling problems for some individuals.
Cryptocurrencies
A cryptocurrency is a digital asset built on a blockchain, with the oldest, largest and most recognized example being Bitcoin. Some individuals engage in day trading or swing trading of cryptocurrency assets in ways similar to how they trade traditional assets such as stocks or bonds. However, cryptocurrency trading can be particularly addictive for several reasons.
- Trading hours:Unlike traditional financial markets, cryptocurrencies trade 24 hours a day, 7 days a week, 365 days a year. This constant availability creates endless opportunities to trade and can facilitate impulsive or compulsive behaviors.
- Market volatility: Cryptocurrencies often experience much greater price fluctuations than traditional assets, generating heightened excitement and anticipation among traders, which can reinforce risk-taking and reward-seeking behaviors.
- Speculative nature: High price volatility, limited fundamental valuations, regulatory uncertainty and the general characteristics of emerging markets make cryptocurrency trading more speculative and attractive to some individuals.
- Higher leverage: Cryptocurrency markets often allow for significantly higher leverage, sometimes 50 to 100 times the initial investment. This means individuals can amplify their gains (or losses) by a much greater multiple than is typically possible with traditional financial products.
Based on the Oregon Gambling Attitudes, Behaviors, Health and Risk Survey (2025), a report commissioned by the Oregon Council on Problem Gambling, adult Oregonians who engaged with cryptocurrencies were six times more likely to be classified as high risk for gambling disorder, as measured by the Problem Gambling Severity Index (PGSI).
Non-fungible tokens (NFTs)
Common NFTs include digital media such as music and visual art, where creators assign uniqueness to the work, similar to how a musician might sign an album cover or a photographer might add a personalized note to a print to make it one of a kind. This uniqueness increases the asset’s value, allowing it to be traded, as seen when the artist Beeple sold a digital collage of 5,000 individual artworks for $69 million at Christie’s Auction House in 2021.
NFTs are increasingly being introduced across a variety of asset forms and within gaming environments, creating new opportunities for speculative and gambling-like behavior. Some examples include:
- Gaming currency: NFTs are used as a means to make wagers in online casinos, replacing traditional methods such as credit cards and bank transfers. The advantages include player anonymity, low transaction fees and global accessibility without the need for fiat currency exchange.
- Prizes: NFTs can serve as prizes that have the potential to appreciate in value, making them especially attractive to players who see an opportunity for ongoing financial gain.
- Player-to-player payment option: NFTs have become a suitable payment method for transactions carried out between players; the transactions are viewed as safe, secure, anonymous and do not require a third party.
- Loyalty program awards: Online casinos use NFTs for customer acquisition and to incentivize loyalty. As unique digital assets, NFTs can serve as a differentiating factor that attracts and retains customers.
NFTs are connected to problem gambling behaviors through speculative activity, such as the short-term buying and selling of digital assets, and by enabling gambling-like ecosystems, including virtual casinos.
Decentralized finance (DeFi) applications
Decentralized finance (DeFi) applications are financial systems that enable individuals to transact directly with one another, without intermediaries such as banks. Many rely on self-executing “smart contracts,” in which financial terms are codified and stored on the blockchain.
DeFi platforms can foster gambling-like behavior by offering a highly speculative, largely unregulated environment that is easily accessible. They blend elements of cryptocurrency trading, prediction markets and gaming, blurring the line between investing and gambling.
Conclusion
The cryptocurrency, NFT and DeFi markets continue to grow rapidly. The cryptocurrency market alone is currently valued at around $3 trillion and is expected to expand significantly over the next decade. As these markets evolve, it is likely that more individuals will seek help from therapists for gambling-like addictions. Treatment providers would be well advised to develop at least a general understanding of these emerging platforms to better recognize and address the risks they pose.