In recent years, there has been a rise in the number of people betting with cryptocurrency rather than regular money. This shift in consumer behavior has worried traditional bookmakers, who are now facing a new form of competition.
Therefore, how do these bookmakers deal with the impact of cryptocurrency betting, and what do they do to remain relevant? In this article, we’ll find out the answers.
How Does Crypto Betting Work?
Crypto betting works in a very simple way. It’s almost entirely similar to traditional sports betting, where you place bets on sporting events or tournaments. The only primary difference is that with crypto sports betting, bets are placed using digital cryptocurrencies rather than fiat currencies.
To begin crypto betting, first, you must own at least one digital currency, such as Bitcoin or Ethereum. You can acquire it using a cryptocurrency exchange or directly trade it from another user. After that, you can simply use them to place bets on your preferred events.
Placing a bet using a cryptocurrency is also super easy. You only need to go to your preferred cryptocurrency sportsbook platform, choose the event you want to bet on and enter the amount of your wager. Then your wager will immediately be processed using the digital currency.
From a legal standpoint, there’s almost no difference between betting with cryptocurrency and betting with regular money. Most countries apply the same laws and regulations to crypto betting as they do to regular sports betting.
If your country legalizes sports betting, there’s a big chance that crypto betting is also legal, and vice versa. However, it’s still crucial that you choose a reliable and trustworthy crypto sportsbook to avoid any fraudulent actions.
Impact on the Industry
These are some of the impacts crypto betting brings to the industry, especially on traditional bookmakers.
Increased Competition
With the rising popularity of crypto betting platforms, traditional bookmakers have to brace themselves for the fiercer competition that’s entering the market. Although they might have been in the industry for a long time, there’s nothing to guarantee that traditional gambling platforms will keep staying relevant.
The popularity of cryptocurrency betting has boosted market rivalry as more businesses seek to benefit from this trend. The sports betting businesses are now challenged to keep up with this.
Many traditional bookmakers have started delivering more appealing promotions and bonuses to their customers to remain relevant. This is because they’re aware that customers are now looking for more value for their money.
If these bookmarks fail to satisfy customers with what they offer, they might quickly lose those customers. Nowadays, people are always ready to switch to another platform if they feel like they don’t get enough benefits.
More Traditional Bookmakers to Incorporate Cryptocurrencies
As crypto betting keeps getting more and more popular, one way traditional sports betting companies can keep up with that is by incorporating crypto into their platforms. These platforms have been slowly transitioning from traditional bookmakers to crypto bookmakers so that they can allow customers to place bets using digital currency.
By providing this option, established operators can take advantage of the increasing demand for crypto betting as well as strengthen their footholds in the industry. This strategy can also be a great idea to attract more tech-savvy and younger customers, who are more inclined to use digital currencies for their purchases.
More Gamblers to Shift to Crypto Betting
The decentralized nature of cryptocurrencies has attracted more and more people to have them. These people are drawn to the safety, anonymity, and ease of transaction of digital currencies. Sometimes, they keep them as investment assets. However, some people like to keep looking for creative new methods to use them.
One popular way crypto fans are using their digital currency is through sports betting. They’re exchanging their traditional money for cryptos to place bets on various sports betting platforms. This trend is here to stay as more people get use to crypto payments when it comes to betting.
More Innovation in the Industry
The use of crypto in the sports betting payment sector might still be on its early stages. But if traditional operators continue to adopt crypto, we should expect the dramatic shift in the payment industry.
The use of blockchain technology for transparency is one possible use of cryptocurrencies in sports betting. With this technology, sportsbooks can provide a transparent and secure depositing environment.
Another thing that sports betting platforms can apply is a smart contract. This will set a bet in stone so all the parties are sure no details can be changed afterwards.
Sportsbooks can use smart contracts to automate the whole betting and payment process. This will lower the risk of fraud and mistakes. Furthermore, this will also help to guarantee that bettors receive their rewards as soon as possible, enhancing the ease of transaction that will boost customers’ experience.
Wider Range of Options to Wagerers
Traditional online bookmakers often have just a few sports and events to bet on. This can be a drawback if you look to diversify your betting experience. Unlike this, blockchain-powered sports betting platforms often provide wider access of betting options and casino games.
Some crypto sportsbook companies allow you to bet on MMA or esports. Although they are popular among a certain betting community, it’s pretty rare to find them in traditional bookies.
In addition to a wider range of betting options, crypto sportsbook sites also tend to offer competitive promotions. This means that you can potentially win more money by betting on these sites compared to when you bet on traditional bookmakers.
Final Thoughts
The rise of crypto betting has indeed created a new challenge for traditional bookmakers. But this challenge is not something that should be viewed as a negative thing.
Because of crypto betting, we can now enjoy faster payments with lower commissions. It seems like the crypto betting industry will just continue to evolve, and we have to prepare for the changes they’ll keep bringing.
