Stablecoins at casinos: USDT, USDC and the risk that "stable" is not stable

Most crypto casinos offer both Bitcoin and stable coins as deposits, and most new players choose the latter. The reason is sensible: if you stake 100 USDT, an hour later it is still worth about 100 dollars, not 92 or 108. But the word "stable" is in the name, not in a guarantee. This article explains what actually stands behind a stablecoin, when the price does not hold and what it means for your casino balance.

What a stablecoin is and what it rests on

A stablecoin is a crypto coin whose price is tied to an ordinary currency, usually the US dollar. "Tied" means the issuer promises to exchange one coin for one dollar. All the trust rests on that promise and the assets behind it. A general overview is on ethereum.org's stablecoin page and in the Wikipedia article.

In practice there are almost always two names at casinos:

• USDT, or Tether. The largest stablecoin by market share and the most common at casinos. The issuer publishes reports on its reserves on its transparency page. Wikipedia gives a balanced overview of its history and disputes.
• USDC, Circle's coin. Known for Circle publishing the makeup of its reserves, and for being more in line with US and EU rules. The information is on Circle's page.

A third type, algorithmic stablecoins, is no longer common at casinos, and for a reason: TerraUSD collapsed in May 2022 and caused losses in the billions. It is the clearest lesson that "stable" without reserves is only a word.

What a depeg is and how serious it is

A depeg is a moment when a stablecoin's market price deviates noticeably from its promised price. The best-known recent example is March 2023: USDC briefly fell to about 0.88 dollars because part of its reserves was stuck in the Silicon Valley Bank failure. The price recovered within days, but on those days every holder's balance really was smaller.

A depeg can affect you in three ways:

1. You hold a stablecoin at the casino. The balance is recorded in the casino's system in dollars or in the coin, but if the coin falls you do not see it until you withdraw or convert.
2. You deposit or withdraw during a depeg. You receive less than you thought, or pay more.
3. The casino pauses that coin. Some casinos pause deposits or withdrawals when the market is uncertain, leaving you only a more expensive option.

A small deviation of a cent or so is normal and is not a depeg. A serious depeg is several percent and lasts hours or days.

What MiCA says and why it matters to you

The EU's crypto-assets regulation MiCA is the first big framework to require stablecoin issuers to hold reserves, offer redemption and be authorised. The parts on stablecoins began to apply in summer 2024. The glossary has an explanation of the MiCA regulation. The practical consequence: not all stablecoins are equally protected in the EU, and some platforms have restricted those that do not meet MiCA's requirements. The situation changes, and the exact position of USDT and USDC must always be checked in the latest notice from the issuer and your own exchange, not from this article.

One more thing MiCA does not solve: a casino balance is neither a bank account nor a custodied crypto asset. If the casino goes bankrupt, neither deposit insurance nor MiCA protects you. A casino is an operator, not a crypto-service provider in the sense of holding your assets. That is why casino-balance risk is a separate risk from stablecoin risk, and the two add together.

Exchange-rate risk a stablecoin does not cover: euro and dollar

Most stablecoins are tied to the dollar. If you live in the euro area and your income, costs and bank account are in euros, every time you swap euros for USDT and back you carry exchange-rate risk. If the euro strengthens against the dollar, you get back fewer euros than went in, even if you lost nothing at the casino. Over a year the swings are sometimes several percent, which is as large as the casino's house edge on some games.

You can limit this risk by keeping the amount at the casino small and the time short: the shorter the gap between deposit and withdrawal, the less time the rate has to move.

Network, fee and address: the other stablecoin risks

A stablecoin exists on several networks at once. The same USDT exists on Ethereum, Tron and several others. The choice of network decides both fee and speed, and the wrong network can lose money permanently. A thorough comparison is in TRC-20 vs ERC-20, and short explanations are in the glossary: TRC-20, ERC-20 and Solana. Check the address and network before sending, and follow the transaction in a block explorer such as Etherscan. How wallets and keys work is explained in the wallet article.

Seven practical rules

1. Keep only what you will play at the casino. Keep the rest in a wallet or on an exchange, not as a casino balance.
2. Withdraw winnings as soon as you are ready to stop. The longer a balance sits, the longer you are exposed to exchange-rate risk.
3. Use a stablecoin whose reserves you can read yourself. Look at the issuer's reports, not only the market price.
4. Check the price before a transaction. If a stablecoin's price is noticeably away from 1.00, wait before you deposit or withdraw.
5. Always make a small test transfer before sending a large amount.
6. Do not keep the whole bankroll in one stablecoin or one casino. Spreading reduces both risks.
7. Keep records. Note the date, amount, rate and transaction ID: you will need it in a dispute and for taxation.

Where to buy crypto and how to start the first time is explained on the page How to buy crypto. If you prefer a euro-based payment without conversion, bank-link casinos are a different world: our sister site pangakasiinod.ee writes about it, and a general comparison is in the freespin.ee article on crypto casinos. For withdrawal timing, the kiiredvaljamaksed.ee timing page gives a clear picture, and our own payments page summarises what each payment method means.