Adoption of blockchain, the next frontier for American sports betting

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Giant letters, reading the word “blockchain” are displayed at the blockchain center, which aims to … [+] stimulate start-ups, on February 7, 2018 in Vilnius, the Lithuanian capital. Britain’s divorce from the European Union is bearing fruit for Lithuania as it strives to become a Northern European hub for fintech, or ‘fintech’ companies, and blockchain-based start-ups. Member of the European Parliament and entrepreneur Antanas Guoga launched the blockchain center in Vilnius to boost start-ups and make connections with Asia and Australia. / AFP PHOTO / Petras Malukas (Photo credit to read PETRAS MALUKAS / AFP via Getty Images)

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After a successful launch on September 1, Wyoming became one of the last states to offer a regulated sports betting market to those within state borders. Yet while Wyoming is the least populous state in the country, the state is attracting the attention of sports betting operators, in large part thanks to its decision to allow the use of blockchain technology for transactions of sport bets.

The federal sports betting ban was repealed on May 14, 2018, when the United Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). Three years later, some forms of sports betting are now regulated and now legalized in more than 30 states.

While most states allow a similar framework, this rapid expansion has seen each jurisdiction attempt to find the perfect formula needed to provide consumers with a competitive marketplace while capitalizing on taxable income.

Interestingly, it took over three years for a state to draft legislation allowing the use of cryptocurrencies.

Wyoming’s sports betting law allows players to deposit funds into their accounts with a variety of crypto and digital currencies, with Bitcoin remaining the most popular option. According to House Law 133, sports betting stores in Wyoming can accept digital, crypto, and virtual currencies as long as they can be converted to cash currency.

State lawmakers have decided to embrace the advancement of blockchain technology, and a number of crypto-friendly bills have been approved in hopes of attracting crypto companies to the state. Crypto conversations in Wyomings Senate chambers are so common that Sen. Jeff Wasserburger says there has been very little discussion about including crypto-compatible language in the Bill on state sports betting.

The ability of players to deposit with crypto may not seem revolutionary, but Wyoming has essentially given operators the green light to start experimenting with the technology. What starts with better funding and withdrawal methods could quickly lead to a whole new experience for all bettors together.

Blockchain and new technologies will revolutionize the sports betting industry

Sports betting is a multibillion-dollar industry, and Forbes estimates predict that the United States could generate more than $ 20 billion in annual revenue on its own if all 50 states approved the practice.

Blockchain technology has revolutionized financial transactions, and many believe that sports betting software would benefit greatly from its adaptation in the industry. Gamers are always looking for faster, safer ways to transfer money, and sports betting could dramatically lower operating costs if they could bypass traditional credit card processing fees.

Lower operating costs either allow the book to operate with better margins, resulting in higher taxable income. These savings could also be extended to the consumer in the form of more competitive betting lines.

Essentially, sports betting serves as a betting exchange where the odds somehow move in response to the amount of interest or money coming in on a particular outcome. Most US operators have already partnered with a number of companies to take care of everything from data acquisition and betting software to geolocation and casino software solutions. It is no exaggeration to anticipate a time when sports betting would team up with crypto exchanges to develop platforms that allow them to serve as digital wallets, allowing players to trade digital currencies and even bet against. other players with their assets.

Hypothetically, a client could hold a certain number of coins in their sportsbook portfolio and continue to gamble in the crypto markets, while still having the ability to quickly place a bet with the coin of their choice without ever having to leave the market. platform.

DraftKings recently made the news with its decision to open an NFT exchange in partnership with Autograph. The blockchain exchange allows players to participate in specialized drops, buy and sell sports-themed NFTs, and participate in free competitions in exchange for digital ownership.

In doing so, DraftKings turned to blockchain technology to create a unique and exclusive environment for subscribers, and one that gives their marketing team direct access to potential bettors.

The legislation is sure to change as sports betting invests more in exploring blockchain technology and its potential uses in the sports betting industry. While the involvement of cryptos in the industry is limited to player deposits in the country’s smallest state, Wyomings’ legal framework has opened the door to the wider market.

It had to start somewhere. Why not Wyoming?

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