There is no escaping the fact that sports betting and cryptocurrencies are two of the biggest industries in the world right now. Changes in legislation around the world have meant that a lot of money has been made in both.
But there is definitely a crossover effect happening as well. If you take a look at betting site reviews, you will see that one of the new positive factors is that a lot of sportsbooks now accept crypto. But why is the use of digital currency so popular in the gambling industry? And what does the future hold? Read on to find out.
Sportsbooks are Early Adopters
As much as online sports betting firms claim to be all about fun and enjoyment, they are more about making money. That is not to say that they strive to make the user experience the best it can be – it just means that sportsbooks are ultimately about the bottom line.
That is why they are so good at spotting an opportunity earlier than other industries. There are several reasons why accepting cryptocurrencies are popular with betting firms, and they were swift to get in on the action. Sportsbooks are some of the most forward-thinking businesses, and they saw crypto’s potential very quickly.
One of the main reasons why sportsbooks like taking crypto deposits are that there are no third-party fees. When customer account holders use debit cards or e-wallets, there is always some fee on the transaction. They may be pretty small, but they all add up over time.
With cryptocurrencies, there is no such fee involved. As no centralized banking institutions control the transaction, the business is between the customer and the sportsbook. This can also mean that some of the saving is passed onto the customer in the form of better odds. It is a win-win situation.
Security and Anonymity
Another positive of digital currencies for both customers and sportsbooks is that blockchain technology provides security as well as privacy. This could be especially important for account holders that live in places where sports betting is frowned upon, or even illegal.
With the transactions keeping an individual’s personal details private, there is more chance of conducting business all around the world. This can also help with combatting identity and bank fraud, which can also be more prevalent in particular countries and regions.
Sponsorship and Advertising
Sports stadium naming rights are starting to move from traditional industries, like this, to crypto companies
One area where the blossoming relationship between sports, sports betting, and cryptocurrencies is very obvious is sponsorship. A perfect example of this would be the Staples Center, home of the LA Lakers and the LA Clippers, changing its name to the Crypto.com Arena.
This is just one example of many instances of crypto companies acquiring naming rights, sponsoring jerseys, or becoming involved with sports teams. The advertising and marketing of these companies can also be seen almost everywhere. With such large amounts of money involved, this is only going to grow in the coming years.
The Future of Crypto and Sports Betting
While cryptocurrencies become more mainstream, the relationship with sports and sports betting is sure to grow as well. There are still questions over how gaming commissions and regulatory bodies can police digital currencies – and how they can protect customer account holders, though.
Crypto certainly seems here to stay, but how entrenched it becomes in sports betting probably depends on how much the wider society allows it to become part of the mainstream.
There is already some kickback on how deeply crypto has embedded itself into the sports and gambling worlds. This may mean that we will see some kind of regulation brought in. How that goes down with crypto users may determine how strong the relationship becomes too. But for now, we will surely continue to see crypto as a major part of gambling’s future.