Figure 1 Bitcoin is changing the betting industry
The gambling industry was one of the early adopters when it comes to cryptocurrencies. There has been a relationship between betting and digital currencies since around 2013 – and that bond only looks like strengthening in the next few years.
Many of the big global sportsbooks, such as bet365, accept Bitcoin as a payment method and the advantages are clear to see for both betting firms and customers. With sports leagues, clubs and organizations now becoming more interested in crypto deals, what does the future hold? Read on to find out how the worlds of betting and blockchain technology will be virtually inseparable.
A simpler question to ask would be why wouldn’tsportsbooks like crypto? The upsides to allowing customer account holders to use Bitcoin and other digital currencies as payment methods are endless. One of the main reasons is the slashing of fees payable by both betting companies and bettor. Using credit cards costs both sides a lot for each transaction.
Anonymity is also a major factor in the attraction of using a currency like Bitcoin. For the bettor, this means that there is no need to disclose any personal details – this might be very important if they reside in a region where betting is illegal. For the sportsbook, it means that they have no obligation aside from taking the money and paying out on winnings.
This decentralization is becoming huge across all areas of business but the sports betting world is keener than most. Becoming more trustworthy to younger generations is like gold dust to sportsbooksas they attempt to attract new customer bases.
Figure 2 Digital currency betting on the World Cup is set to increase
As with anything seemingly positive, there is always going to be some downside. But with cryptocurrencies, the disadvantages for both the sportsbooks and the bettors seem to be very few. One problem with using Bitcoin is that it is very volatile. The possibility of the exchange rate changing so dramatically may well be a positive for some – but it could be a definite negative as well.
This could also impact the bets placed themselves. If a wager covers a long amount of time, the worth of the cryptocurrency when the winnings are actually paid out can be very different to what was staked.
Wyoming made the betting industry headlines in September when it announced that it would allow sports betting in the state. That news alone might not seem incredibly headline-worthy, but the fact that one of the smallest states in the country also paved the way for allowing cryptocurrencies as a payment method showed exactly which direction this relationship is going.
The only real caveat to Wyoming’s new regulation is that the cryptocurrency must be able to be transferred into a cash-based currency. Most of the top sportsbooks allow for that already, so that will not be a problem.
Sports betting is a multi-billion dollar industry and the introduction of blockchain technology should increase the profits made by sportsbooks. Embracing cryptocurrencies seems to be a win-win deal for everyone – and we are likely to see far more legislation involving the two worlds in the next few years.
With the value of Bitcoin growing at an incredible rate throughout 2021, it is obvious that the gambling industry will want to continue its strong links and expand even further. The introduction of cryptocurrencies has changed the way sportsbooks operate already – but there are bound to be many more examples of this close relationship coming up very soon.
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