Description: Learn how decentralized betting differs from ordinary sportsbooks. Discover how to avoid ID verification and excessive fees with crypto (bitcoin) betting.
Did you know that sports betting generates more income than other gambling sectors? According to Zion Market Research, the global sports betting market was valued at $104.31 billion in 2017 and is projected to reach over $155 billion by 2024. Forecasts imply that the betting industry will grow by 11.94% annually from 2020 to 2025.
What’s interesting, the technology behind it is evolving as well. Decentralized betting took the industry by storm by introducing a transparent, secure, and anonymous way to bet on sports from any region or country. But how does it differ from regular sports bets? Keep reading to find out!
Two Ways to Bet: Centralized and Decentralized Betting
The online betting industry is growing thanks to new digital services. Until recently, people relied on betting websites with central management. But now, there’s another way: decentralized platforms have entered the picture.
Centralized betting platforms
Centralized platforms (or online sportsbooks) are the most common websites for legal sports betting. You have to rely on central operators who control and process all deposits and winnings on the site. These platforms are subject to regulations, and, based on their location, users may experience problems when trying to withdraw their winnings.
Decentralized betting platforms
These platforms operate on blockchain technology — a decentralized peer-to-peer ledger that stores data globally on thousands of servers. Decentralized platforms are also referred to as crypto, or bitcoin (BTC) sports betting platforms since they deal in cryptocurrencies.
Blockchain technology has given way to more secure and transparent sports betting and market predictions (spread betting). Why? Because it avoids problems inherent to regular online betting platforms.
Problems of Online Sportsbooks
Despite the popularity of centralized betting platforms, dealing with them can prove difficult – especially if you are winning. Here are the problems you can encounter on online sportsbooks:
- High margins and fees. Centralized betting websites prefer placing high margins to collect more money from each bet. The margin for online sportsbooks stands at around 7% on average. If you add transaction fees and tax on sports betting to the equation, you’ll see that a substantial part of your earnings disappears.
- Regional restrictions. Laws in some countries like the US and the UK can complicate sports betting. For example, your bank can reject your deposits and incoming transactions. Furthermore, many centralized platforms are legally obliged to share your data with the State Revenue Service. Consequently, it’ll be impossible to avoid taxes on sports betting and spread betting.
- Transparency issues. You don’t get to decide the odds and maximum bets on centralized betting sites, nor will you get information on how operators set them. You get what you see, and the odds are always in favor of the bookmakers.
- Betting limits. Online sportsbooks can limit the amount (or sums) of your bets when you start winning too much. Your account can even become suspended for some far-fetched reason.
- Registration & ID verification. Centralized websites require you to provide personal information. This includes your real name, date of birth, Social Security Number, and other data that can be used to identify you. As you win large sums of money, these websites may ask you to upload additional document scans of a passport or driver’s license. What’s even worse — there’s no guarantee your data won’t be used for identity theft or financial fraud.
There’s one thing you should keep in mind about online sportsbooks: they are businesses that don’t want you to win. When you do — they’ll go to great lengths to make the money withdrawal as tricky as possible.
Advantages of Decentralized Betting
How are BTC sports bet platforms different from regular betting websites? Let’s look at the reasons why decentralized betting is the preferred option for many users.
- No regional restrictions
While virtual currencies exist in a deregulated space, governmental institutions do regulate them. The Internal Revenue Service (IRS) identified them as a virtual currency and created a tax form for crypto transactions in 2020.
Still, sports gambling isn’t legal everywhere. Many states (like Georgia and Florida) are yet to legalize sports betting, while others are outright against it.
Decentralized platforms don’t have a central authority (pun intended) and aren’t subject to regional laws. The same is true for cryptocurrencies: they don’t have a unified controlling authority. Consequently, you can place BTC sports bets from almost any region without restrictions. Moreover, you won’t need to worry about your bank rejecting transactions.
- Low fees
Decentralized betting takes place without central authorities and operators, therefore, it requires less operating costs. As a result, the platforms collect only a small percent of all bets.
And here’s the best part. Since governmental and federal authorities don’t restrict these platforms, you can avoid tax on spread betting and sports bets.
- No control over your funds
Traditional sportsbooks require you to deposit a certain amount of money to start betting, which gives them control over the cash flow. Decentralized platforms don’t impose such regulations, meaning people can place BTC bets without making a deposit. As a result, decentralized betting sites can’t hold your funds when they please.
- No documents required
Decentralized platforms allow you to participate in BTC sports betting anonymously. The registration process is easy, and, what’s more, you don’t need to provide any documents or personally identifiable information to withdraw your funds.
- Instant payouts
Decentralized betting websites don’t control your deposits, nor do they process your winnings. Instead, they rely on smart contract technology that works on the blockchain. This tech can guarantee that you receive your payments almost instantaneously.
Easy and Secure BTC Sports Betting with Sportbet.one
Decentralized betting offers the safest way to wager on sports without exposing your private information. On top of that, these platforms are more user-oriented than regular online sportsbooks. You can place bitcoin bets without limitations no matter where you live and be confident that the website won’t cut or deny your winnings.
Do you want to try transparent and anonymous BTC betting? Even if you’ve never dealt with cryptocurrency, we can help you make your first bet in a few minutes.
Sportbet.one is the first decentralized platform for sports betting with a focus on the customer’s convenience. The registration is fast and doesn’t require you to upload documents or share personal information. Moreover, our website has a built-in cryptocurrency exchange service that allows you to buy EOS, bitcoin, and USDT in a couple of clicks. Register on sportbet.one and start betting on sports anonymously and with fewer risks!