As the oldest form of cryptocurrency on the market, BitCoin has become greatly respected as a legitimate alternative currency. So much so that its uses have expanded from simply just buying and trading it to using the coin to fundraising and even making online purchases.
Of course, the boom of the cryptocurrency industry has enabled the digital phenomenon to become a fixture in sports betting. Its value and reliability are the reason why crypto-supported online casinos are popular among Canadian gamblers, and it has opened up lots of opportunities in the crypto space, influencing online sports betting through the growth of esports markets.
Previously, sports betting wagers were done through cash at physical events and through card payments with online bets, but the adaptation of Bitcoin into sports betting is somewhat of a slow process that has taken the sporting industry by storm. Here are some reasons the coin has become a hit in the sports betting world.
Legal restrictions lifted
In May 2018, The Supreme Court decided to legalize sports betting across US states after a 1992 federal law banning sports betting countrywide. In America, at least, this opened up the window for a previously shutdown market.
Whilst this decision was made over five years ago, putting this into practice showed an acceptance of a free sports market where betting could occur without stigma. In relation to Bitcoin, the slow acceptance of online casinos and sports betting has enabled the two forces to partner up to better their markets on online platforms.
As Nevada is the gambling capital of the world, one might expect that sports betting and crypto were both widely accepted there first. However, it was in fact in the state of Wyoming in April 2021 that sports betting online were legalized. A separate law was passed under House Bill 133 to also allow sports betting with cryptocurrency.
Crypto sportsbooks are simply online platforms that allow users to place sports bets in the form of cryptocurrencies. Bitcoin commonly has its platforms in this space that use blockchain technology and digital currencies for fuss-free and secure transactions.
These sites are arguably the biggest reason why Bitcoin has had a seamless transition into the world of sports betting. That, and the fact that sportsbooks are not as rigidly monitored as other betting sites, so there is no hassle when it comes to depositing funds or receiving payouts. In the USA, casinos still have their own regulations to abide by, but in crypto sports betting, these are much more relaxed, which adds to their appeal for regular betters.
Lower transaction fees
Sportsbooks and those sites that have accepted Bitcoin and other cryptocurrencies into sports betting are reportedly paying lower transaction and operational fees than regular sports betting platforms. For sports betting platforms, this is appealing because while attracting new customers who are making their own revenue, they are earning more taxable income when customers deposit their Bitcoins and cryptocurrency into online sites.
Bitcoin is in operation on a distributed network of computers known as nodes that collectively store and validate transactions. There is no central authority to monitor fees, unlike in the case of conventional finance systems. The users themselves set the charges, taking into account their willingness to pay.
The fees remain fairly low although the disadvantage can be that these fees fluctuate based on the current conditions of the cryptocurrency market.
The easy access way in which Bitcoin has infiltrated the industry of sports betting is through athletes themselves. First, the big sports leagues had to accept Bitcoin and cryptocurrency bets in their sports in order to begin any negotiations for specific coin endorsements. Some major sports leagues which have allowed Bitcoin sports betting are the National Football League (NFL) The English Premier League (EPL) and The National Basketball Association (NBA).
Due to rising inflation in America, some athletes have begun to take their salaries in Bitcoin as accepting their paycheck in USD will decrease their salary over time at a gradual rate. Salaries in cryptocurrency, however, are less likely to devalue as quickly as USD, as long as the market for the coins remains stable.
Wide receiver Odell Beckham Junior took his 2021 salary with the Los Angeles Rams in Bitcoin, becoming one of the first mainstream athletes to publicly endorse Bitcoin in that way. While he was not actively promoting it, this was a huge step in showing how Bitcoin can be beneficial for financial gain if the market allows it.
Beckham-Junior was not the last player to take his salary in Bitcoin either, as the Caroline Panthers’ Russell Okung accepted half of his own salary in Bitcoin the year prior to Odell Beckham Junior.
It is not common practice for most athletes to do this, but by these athletes taking this risk with Bitcoin it has shown that there is an increased belief in alternative digital currencies and their uses in different industries, including sports betting. Additionally, the endorsement by popular athletes can encourage their fans to bet in Bitcoin which is easy now thanks to sportsbooks.