How is Crypto Changing Sports Betting?
With Superbowl 57 right around the corner, it seems that cryptocurrencies and sports are becoming more closely intertwined than ever before. Last year, before their crash, we saw a huge number of advertisements from FTX that involved popular athletes like Tom Brady and Steph Curry. However, following the crash, it appears that sports are still a major vehicle for onboarding new users to web3 with events like the World Cup playing a larger role than ever before.
One prime example of this that has slowly begun sprouting is crypto sport betting. While the legalities of sports betting in the United States are currently undergoing major reforms, it is still a popular avenue for many people around the world who see it as another way of exercising their gambling strategies with blockchain assets.
Projects like SoRare have made it easy for web3 users to enter the world of on-chain sports betting with fantasy sports-style games that allow traders to purchase NFTs that represent their favorite players, reflecting their real world performances.
However, the scope of this article is to look at the larger picture of sports betting that is being created by cryptocurrencies to identify how crypto is being utilized, not just fantasy sports; and if it is ultimately a benefit for blockchain adoption or merely a utility that undermines the legitimacy of cryptocurrency as a whole.
The Legal Landscape of Online Sports Betting in the United States
Online gambling in the United States has been a fickle horse since the world wide web first began in the 1990s. However, the biggest came in 2006 when former President Bush signed the Security and Accountability For Every Port Act (SAFE) into law.
The new law, which focused largely on shipment containers had a small section attached to the end about online sports betting which made a distinguishable difference between fantasy sports and sports betting, defining fantasy sports as a game of skill based on prior knowledge and statistical analysis opposed to standard sports betting which was largely deemed to be determined by factors of chance.
Oddly though, this seems to contradict SoRare which uses fantasy sports as a way to provide additional betting opportunities. According to a video published by Wendover Productions, the introduction of the SAFE Act created a loophole when differentiating between sports betting and fantasy sports that has allowed larger companies like FanDuel and DraftKings to provide opportunities for placing bets on daily performances.
How Cryptocurrency is Used in Sports Betting
Cryptocurrency’s application for sports betting couldn’t be more obvious. The blockchain’s ability to record immutable records makes it one of the best systems for hosting financial risks. Many popular online gambling sites like BetOnline and Vave allow users to directly deposit the standard assortment of cryptocurrencies, stablecoins, and bitcoin.
Although online gambling is a major legal gray area, decentralization still create a variety of benefits for businesses:
1. Security - Verified and audited smart contracts inform users about the legitimacy of a platform.
2. Speed - Certain networks like Solana, Polygon, and Aptos offer faster speeds for transactions than traditional fiat can for gambling withdrawals.
3. Anonymity - Online gambling can attract bad actors and the additional anonymity that is created by cryptocurrency will help keep your identity more private.
The Benefits of Sports Betting for Cryptocurrency
The wider world of web3 tends to celebrate adoption when they see it. Cryptocurrency is a difficult subject for many to understand and it has created a lot of friction between people that value it and those who don’t. Yet, it seems that sports betting, and gambling as a whole, has largely gone unnoticed by many regardless of the criticism swirling around the NFT marketplace as one giant casino.
In the world of online gambling, cryptocurrencies and bitcoin have clear benefits due to the financial nature of their businesses however reputable or untrustworthy they may be. However, the legitimacy of gambling is so morally gray that blockchain enthusiasts might be shying away from leading an argument about the benefits of cryptocurrencies in the online gambling industry during a time that is swarming with crypto scams and fraud.
Some may think that FTX would have been the final straw with its numerous TV ads starring popular athletes, but hyped commercials for the Digi Daigaku NFT collection planned for Superbowl 57 suggest that the sports industry might have a vested interest in the success of cryptocurrencies. However, new reports are showing that Superbowl 57 won’t be showing any advertisements relating to cryptocurrency.
As mentioned before, Fanduel and DraftKings are two sports betting businesses that have slowly grown into massive companies. As regulations around digital assets become more clear and the legality surrounding sports betting in the United States continues to soften, it wouldn’t be a surprise to see these corporations begin to import cryptocurrencies onto their platforms.
Conclusion
The question whether online gambling is a good example of cryptocurrency adoption and utilization might not be the prettiest argument to support blockchain technology, but it’s one that will begin soon as online sports betting becomes more available to Americans.
While many critics want to believe that crypto has finally been slayed, it’s quite clear that adoption has not slowed down by any major degree. In fact, more businesses are becoming involved and many are simply waiting on the sidelines, ready for their chance to play.
