How cryptocurrency affects sports betting?

As cryptocurrencies continue to become more prevalent in everyday life, it was only inevitable that they would develop a growing presence in the sports betting market.

Not only do certain traditional betting sites now accept cryptocurrency as payment, but a number of cryptocurrency-specific sites that have been launched, provide both the bookmakers and the bettors a number of benefits that are not possible on other sites.

The very nature of bitcoin lends itself perfectly to online betting: it reduces service costs which in turn allows betting sites to offer more favorable odds and bonuses. From the bettor’s side, fees and commissions typically charged on withdrawals have been eradicated, while withdrawals are either instant or exponentially quicker.

Additionally, there are no territorial restrictions so bitcoin users from around the world are able to participate, while the anonymity provided that can help protect users’ personal information, which could be sold on by other betting sites to advertising companies.

Those interested in venturing into bitcoin-specific sports betting sites still need to do their due diligence due to the lack of regulations that invariably go hand-in-hand with a decentralized digital currency.

However, there are a number of established bitcoin betting sites where users can feel safe depositing their bitcoins. Among them 1xBit, Cloudbet, Nitrogen Sports, and Sportsbet.

These sites all operate similarly to traditional betting sites by offering a vast number of sports, leagues and tournaments on which to place wagers. All the usual methods of betting are available, including moneyline, total over/under and point spreads.

Last week, it was revealed that 1xBit had added the UFC – the world’s largest Mixed Martial Arts (MMA) promotional company – to its list of available sports, highlighting both the site’s expansion and the UFC’s growing interest among the general public.

The change in sports betting laws in the United States last year – which saw the U.S Supreme Court strike down a federal law that banned sports betting in most states – is sure to have an impact on the market in the coming years.

Although the 1992 Professional and Amateur Sports Protection Act did not apply to animal racing, most pertinently horse racing, it did bar all other sports gambling except for in Nevada, Delaware, Oregon, and Montana – where certain sports betting laws were already approved before the law came into effect. However, Nevada, where Las Vegas is located, was the only state where bets could be placed on a single sports game.

According to reports, as many as 32 states will offer sports betting within five years after the law was struck down, essentially opening a whole new market to betting sites, both traditional and with cryptocurrency.

Combine this change in federal sports betting law with the reported 26 million people in the United States who currently own cryptocurrency, and there is a massive opportunity for companies like the ones mentioned and others who will appear soon, to lead the charge.

Cryptocurrency has already penetrated the sports market offline, with the likes of NBA teams Dallas Mavericks and Sacramento Kings accepting cryptocurrencies for tickets and merchandise. Gold-medal speed skater Ted-Jan Bloemen signed a sponsorship deal made up predominantly of cryptocurrency, while Instant Sponsor has created a sports sponsorship marketplace for rights holders and sponsors to connect and create sponsorship deals in exchange for cryptocurrency (as well as fiat money). It feels almost inevitable that the sports betting market will eventually follow suit.

As blockchain technology continues to develop and cryptocurrencies become an increasingly common part of more and more people’s lives – and as the sports betting market around the world continue to expand – these two industries are sure to see even greater synergy in the coming years.