Back
Aron Wright - August 5, 2024
Cryptocurrency and blockchain technology have changed the world over the last 10 years. The integration of cryptocurrency into various important industries has validated the use case of this technology. The sports betting industry is one of the sectors that has seen an integration with cryptocurrency.
As the rules change, we expect that this integration will deepen and the impact of this technology will spread. In this guide, we will discuss the legal state of cryptocurrency in sports betting and the impact that cryptocurrency brings to the industry.
There is no consensus on the legality of cryptocurrency and its use is largely influenced by where players reside. Sports betting with crypto is a legal grey area in some countries as it is neither regulated nor banned. In these areas, players are free to engage in cryptocurrency betting as long as they are of legal age and are not engaging in fraudulent activities.
In some jurisdictions, cryptocurrency betting is heavily regulated and crypto betting websites are registered with regulatory bodies with oversight from the government. The final category of crypto betting jurisdictions are areas where cryptocurrency use is banned outrightly.
Players from these regions might have to use VPNs (Virtual Private Networks) and other tools to access websites that offer cryptocurrency betting. These are the three common legal backdrops upon which cryptocurrency exists in sports betting.
Crypto has had a significant impact on the sports betting industry. These benefits are the major reason why its growth has continued unabated. As this growth continues, it is set to change the betting industry forever. Here are some of the impacts cryptocurrency brings to sports betting.
Cryptocurrency brings transparency to sports betting as all transactions can be viewed using a block explorer. This eliminates hidden fees or shady transactions and increases the trust between players and operators. It also reduces the activities of bad actors by eliminating any avenues for them to exploit players.
Therefore, trust in the industry is increased and more players can enjoy betting on their favorite sports without fear of falling into scams. The odds calculations are also transparent and allow users to know the true odds of each bet that they place.
Anonymity is one of the best benefits provided by cryptocurrency. Due to the negative societal stigma associated with gambling, most players are reluctant to engage in the activity. This aversion is not helped by the AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements that are mandated by most fiat casinos due to regulations.
Cryptocurrency eliminates the need for these user verifications and allows players to engage in gambling without any repercussions. This encourages players to bet on their favorite sports as they do not need to expose their identities or provide personal documents to operators.
The cost of making deposits or withdrawals on online betting platforms is a barrier for some players. This cost is determined by the financial institution used to facilitate the transaction. Fees typically range between 1% to 5% of the amount being deposited and this eats into the bankroll of players.
Cryptocurrency eliminates this problem by reducing transaction fees to near zero. It eliminates the middleman and puts users in direct control of their transfers. This has also allowed gambling websites to increase the limits on the amounts that are transferable. With these low fees, more players can participate in online sports betting.
Security is important in every facet of online activities and sports betting is not an exception. Users need to know that their transactions are safe and they are protected from bad actors.
Cryptocurrency through the blockchain ensures that users can engage in financial transactions on unhackable networks. The blockchain cannot be exploited by bad actors and all transactions are validated by nodes connected to the network.
Players are in full control of their transactions and can track them from when they are sent till they reach their destination. Players do not also need to subscribe to an external service or rely on the sports betting website for protection.
Cryptocurrency is universally accessible to everyone regardless of where they are in the world. This increases the player base for operators and allows them to reach new markets. It also allows players who live in remote parts of the world to access gaming options that would have been previously unavailable.
Cryptocurrency betting websites are not restricted by the geo-blocks that affect traditional betting websites. This ensures that players can access them wherever they are located.
In addition, players can also use VPN services to create a fortified connection with their preferred crypto-gambling website. All players need is a device with an internet connection to access crypto gambling websites.
There are numerous gaming options available to players at cryptocurrency sports betting websites. The available options rival fiat betting sites and provide a robust assortment for players to choose from.
There are also unique betting types that are only available on crypto betting websites such as no-loss betting. No-loss betting is a type of bet where your money is returned if your predictions are wrong.
Using DEFI (Decentralized Finance) concepts like yield farming, crypto betting websites can create unique gambling experiences for players.
The speed of transactions is one of the biggest critiques of fiat-based transactions. Depending on the medium used by players, transactions can reflect instantly or take up to 24 hours. This uncertainty in transaction time can be a hindrance to player’s experience on gambling websites.
Using the blockchain, cryptocurrency payments can facilitate instantaneous payments from player’s wallets into their betting accounts. This allows players to seamlessly deposit and withdraw funds regardless of the cryptocurrency token they are using for sports betting. The absence of middlemen required to process transactions contributes to its speed and delivery.
