Decentralized Sports Betting
It’s now more evident that the internet has altered the way we live our lives and interact with each other the world over. Blockchain technology is also set to become as phenomenal as the internet business. The question is; which industries will be affected by this wave fast. The jury is out there, as many say it will either be digital cats, and others argue that it will be the financial services sector. We, however, think sports betting is a testing ground for the blockchain technology decentralized platform.
Why Sports Betting Is Low Today
Sports betting isn’t as popular as it should today because it has been developed to be biased against punters. There are plenty of sports betting websites in the offing today that fall under the sportsbook category. Sportsbooks such as Bet365 act as the House in traditional casinos. Bookies are running them set the odds and take the opposing side of every wager placed. Every dollar won by a player is a dollar lost by the Sportsbook.
With such scenarios, a conflict of interest arises between gamers and sportsbooks. As it is constituted currently, the whole sportsbook business model is designed to ensure players lose money continuously. The model leads to the rise of the Bet365 Problem, which results from sportsbooks administrators curtailing users from raking in winnings so that the businesses turn in profits.
Taking Away Transparency
To keep shareholders happy, sportsbooks eliminate transparency. They don’t provide users with information regarding how odds are set. They don’t furnish users with information on how they calculate bet sizes etc. Sportsbooks also sneak in high fees into the odds ensuring that users win fewer amounts.
Decentralized Sports Betting Exchanges
Bet365 hasn’t incorporated decentralized sports betting exchanges. They are keen not to because it would hurt their profit margins. Other platforms have, however, resulted in decentralized gambling forms. In the new order, as opposed to taking the opposing side of every bet placed, the new sportsbooks exchanges assume the role of stock exchanges. They match buyers and sellers together and earn a commission on each trade.
The most critical aspect is not to profit from bettors that have lost their wagers. Decentralized sports betting exchanges allowing users to wager on peer-to-peer as opposed to betting against the House. Without the likes of Bet365 platforms deciding how high the fees should be, or how low transparency should be, decentralized betting exchanges are becoming popular by the day.
How They Work
Decentralized betting platforms charge lows fees of 2% on winning wagers. So for punters that make losses are not required to pay any fees. The results are higher profits for sports bettors that make smart wagers.
Transparency and Better Odds
Betting exchanges don’t go the traditional route of setting odds on an exchange. They encourage bookmakers to submit orders and bettors to accept orders. Bookmakers compete to have their orders accepted. They do all they can to outbid each other by granting bettors the best possible odds. The result is an efficient market that has higher odds as opposed to traditional sportsbooks. Bettors also benefit from better odds.
Also, note; betting exchange platforms are 100% transparent. Bettors can also follow orders that live on the market. They can keep track of how wagers are being placed; they know the maximum bet sizes and keep track of how odds are changing.
Unlike sportsbooks, betting exchanges refrain from banning winning traders. The exchanges maximize trading volume by improving user experience. Should sports bettors win wagers worth $500,000 daily, they’d be welcomed at betting exchanges wholeheartedly.
Decentralized Sports Betting Exchanges
Future Cryptocurrencies have made decentralized betting exchanges such as WAGERR provide users with additional activities that align with their interests. WAGERR runs its unique protocol that rewards each user of the WAG Coin. Each time a trader places a wager on WAGERR, the trader earns free WAG Coin protocol to ensure thus becoming a partial owner.
Decentralization of almost all industries is going to happen over the next decade and bring people closer together with no middle man interference. Blockchain makes this possible and in the sports industry, it is going to have a major impact and role going forward. Platforms such as WAGERR and YOUnited are leading the way in 2019 but expect an influx of rivals over the next couple of years.