Cryptocurrency has changed the way we interact with goods and services for good, and the sports betting industry is no exception. Before the advent of cryptocurrency, sports betting was driven majorly by cash transactions and the traditional banking system. This obviously posed a number of challenges, which crypto is helping to mitigate.
With the increased acceptance of cryptocurrency globally, more people are embracing the technology while placing their sports bets. Techopedia author Michael Graw shares that Bitcoin betting has grown hugely as it became more popular and accessible.
Cryptocurrency is based on blockchain technology, which eliminates the need for a central authority to validate transactions. All crypto transactions are peer-to-peer, meaning that anyone anywhere can participate, even those from countries with strong socio-political restrictions.
For people who are concerned about their privacy and data, using crypto offers a viable opportunity to participate in sports betting without revealing personal information. Anonymous casinos are casinos that accept crypto payments and do not require KYC or IDs, have developed off the back of this technology, ensuring the privacy of bettors and gamers.
Cryptocurrency transactions are recorded in a public ledger that anyone can access. Yet, in spite of this technology’s seemingly open nature, it is quite secure, as the blockchain is very difficult to hack into. Using crypto in sports betting ensures an increased level of transparency and security in transactions, thereby reducing incidences of fraud.
The benefits of cryptocurrency in sports betting are not limited to bettors. Operators within the sports betting scene also benefit from the technology. Crypto eliminates all forms of geographical limitations that could prevent people from places with a limited flow of financial services or restrictions on betting from participating in sports betting. This has opened up new markets to operators, expanding their user base significantly, allowing them to offer their services to fans globally regardless of whether their interests are in the NFL, Cricket, or sports as rare as cheese rolling in Cooper’s Hill, England. The more users a platform has, the more interesting it is for users, and this increases their chances of continued engagement with the platform.
The seamless and fast nature of crypto transactions means that bettors and operators can get more done in a short time. Unlike traditional banking transactions, especially when done across borders, which could take days to process, crypto transactions can be concluded in minutes. Removing the friction between placing a bet and receiving payouts significantly improves the user’s experience.
Also, although less common, some operators now conduct their businesses using smart contracts. Smart contracts are self-executing programs that are automatically triggered once the conditions for a bet are met. With smart contracts, bettors do not have to worry about operators pulling a fast one on them, and this builds trust in the system. Not to mention that transaction fees are lower for cryptocurrency transactions, saving bettors money while increasing patronage and transaction volume for operators.
Cryptocurrency has also made sports betting a lot more fun and edgy with the tokenization of assets on the blockchain. Tokenization involves using digital tokens to represent tangible items such as tickets, sporting memorabilia, jerseys, and the like. This allows sporting fans to feel more engaged in sporting events beyond the outcomes of the games, improving the entire experience for them. On the other hand, operators are also introducing crypto-based reward systems on their platforms to incentivize users and build loyalty and community.
The sports betting industry has grown exponentially over a short period. No doubt, the emergence of crypto on the scene has played a huge role in this growth. Consumers appreciate seamless transactions and want to be sure they are not being robbed blind by betting companies. Cryptocurrency ticks both of these boxes, changing sports betting for the better.
