Cryptocurrencies and Sports Betting: The Future

By | December 14, 2021

The gambling industry has secured its standing as one of the earliest adopters of blockchain technology, especially cryptocurrency. Cryptocurrencies possess many incentives and characteristics that make them an attractive addition to the gambling landscape. The relationship between cryptocurrencies and betting goes as far back as 2013, and it’s only going to strengthen in the foreseeable future.

The majority of the popular and established sportsbooks, even some smaller ones, accept the crypto-king currency Bitcoin as a payment method. The audience has also shown support of the idea, with bettors preferring to pay via cryptocurrency when wagering on NBA games, NFL Odds, and more sporting events. The advantages that cryptocurrency offers to sportsbooks and bettors are there for all to see. 

Now that all the huge sportsbooks, sports leagues, organizations, franchises, and clubs have shown interest in integrating cryptocurrency in their businesses, what does the future look like? How can this partnership between the two continue working out? 

What Makes Each Appealing to the Other

Why should they not like each other? Both offer significant advantages when integrated into the other. The positives for a sportsbook to allow customers to pay for their wagers via Bitcoin are enticing. 

Negligible Transaction & Processing Fees

One of the most fundamental reasons is that using cryptocurrencies for payment has far fewer transaction and processing fees than conventional methods such as credit cards. 

Anonymity

Another brilliant feature offered by cryptocurrencies, which is loved equally by betting sites and bettors, is the level of anonymity crypto offers. On the bettors’ part, this signifies that there is no need for disclosing any personal information whatsoever, like their address, name, IP address, and more. 

However, the bettor still needs to reside in a region where wagering is legal. As for the sportsbooks and gambling sites, it frees them of any obligations placed upon them by government and international regulatory institutions. In this case, where crypto is used as payment, the sportsbook has only to take the money wagered by the customer and pay out the winnings. 

Decentralization 

The decentralized nature of cryptocurrencies is vastly significant across all areas of the market, but their value in sports betting cannot be underestimated. This means increased trust by the audience, especially the younger generation. The younger generation’s trust is invaluable for sportsbooks and other gambling arenas, as they hope to maintain them as a permanent feature in the future. 

Disadvantages of Integrating Cryptocurrencies

While one certainly expects every technology to have its downsides, there are surprisingly few when it comes to cryptocurrency in betting. The main problem considered by many when investing and using cryptocurrencies is their volatility. Cryptocurrencies are highly volatile and prone to exploding as well as crashing. 

This means that you can never be certain of their value over a period of time. It has the potential to either sky-rocket or go down the drain. This property can also end up drastically affecting your wagers as well. In the case of long-term bets placed via cryptocurrency, one cannot help but expect the value of cryptocurrency invested for a wager to be completely different over the time it reaches completion or gets a final result.

Final Thoughts

Sports betting is a vast industry, financially worth billions of dollars. The integration of blockchain technology is expected to enhance the profits earned by gambling sites and sportsbooks. Integrating and embracing digital currencies is, more likely than not, a win-win situation for everyone involved. 

You can’t bet against seeing more legislation that affects the two in the coming years. Cryptocurrencies have already revolutionized the way sportsbooks operate, and there are to be many high-profile examples proving the same in the next few years.

Category: Crypto

About Safdarali Rizvi

Safdarali Rizvi the management graduate. Has been an avid book reader all his life so naturally loves playing with his words. His curiosity for discovering futuristic opportunities lead him to explore the world of cryptocurrencies. He has a real passion for calisthenics and sports. His management abilities and hunger for learning brings tremendous value to our team.

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