Description: Where traditional online betting is rigged to favor the bookmakers, decentralized betting works for players. Learn the pros and cons of both approaches!
Online betting has been around for more than 25 years. What’s more, the overall size of the online betting market is expected to reach $155.5 billion by 2024, with the online sports betting market valued around $87 billion, according to Zion Market Research.
However, only part of this pie will belong to conventional online sportsbooks since decentralized betting is rapidly gaining popularity. Read this research to discover the main differences between standard online betting operators and BTC sports betting platforms, as well as the pros and cons of both approaches. This will help you select the model that suits you best.
Online betting platforms are great, you’d bet… but you can’t
You are probably well-acquainted with standard legal sports betting procedures. You need to authenticate as a legitimate participant of the online betting platform, deposit some funds, place your bets, and withdraw your earnings if you’re lucky.
The good aspects of this approach are apparent:
- You can easily top up your account using Visa/MasterCard/AmEx credit or debit cards, Skrill, PayPal, wire transfer, bank transfer, and even place a BTC bet
- You can select from a wide range of sports according to a schedule known well in advance
- You’ll quickly grasp the simple functionality of a platform
- You benefit from multiple promo actions like free bets or bonus money equal to your deposit
- You can earn big since there’s a lot of cash in the ecosystem
However, there are also bad and ugly aspects we tend not to talk about:
- Online betting is a strictly observed industry where you must comply with lots of regulations
- You need to provide a lot of documents to verify your account
- You can play only within the confines of your area of residence, which is hard for players from the USA, the UK, China, South Korea, and other countries where sports betting is heavily regulated
- You need to place a deposit to start playing, and these deposits are usually non-withdrawable
- Many banks avoid working with the online betting industry, at least until your country of residence starts legalizing sports betting
- You can bet only within limits set by the bookie
- There is hell to walk through when you try to withdraw your earnings, especially if you “snatched a fortune.” Aside from paying the platform fees, you need to take into account various taxes on sports betting and prove the origin of your money to your bank
- Also, the platform can halt the payout until you prove ownership of the funds you initially deposited. They might also demand a video call to “prove the player’s identity” and invent a thousand more reasons to avoid paying your earnings out
- The platform might limit the maximum size of your bets to stop you from winning much when you are on a lucky streak or make other decisions you might disagree with
- The platform must provide your details to any authorities on the first request, which might mean reputational losses for your business and personal image.
Thus, despite being an established and reliable approach to betting, online sportsbooks provide quite a lot of hindrances and limitations. This is where Bitcoin bets can give you an upper hand.
How is Bitcoin betting different?
The key goal of creating blockchain technology was the removal of the centralized regulator for any financial market. This creates a self-regulating environment ruled by the consensus of the majority of the nodes. Transparency of operations, immutable ledger, and anonymity of participants are great features of any blockchain ecosystem, including online betting. More importantly, after the SEC added blockchain assets to the list of tradable securities, the trust and interest in decentralized betting platforms skyrocketed.
There are currently three main approaches to decentralized betting:
- BTC sports betting for people who want to place cryptocurrency bets on the outcomes of sports events
- Bet-on-everything sites, where you can bet on politics, Oscars, or even weather
- SDKs for other dapp developers to build on
The key benefits of using BTC sports bet operators as compared to conventional booking platforms are the following:
- Anonymity, as you simply create your crypto wallet without multiple layers of authentication
- No fiat deposit required: you can bet with any cryptocurrency supported by the platform
- Lack of centralized regulators
- Transparency, as all bets are placed within smart contracts and are automatically paid out in case of winning
- Instant withdrawals to any crypto-fiat exchange of your choice
- Ability to bet on any sports anywhere in the world regardless of your residence
- Greatly reduced vig and other fees
- Absence of any tax on sports betting, as the regulators don’t even know you are here due to the complete anonymity of blockchain transactions
Still, there are certain shortcomings to using Bitcoin betting:
- Low liquidity compared to traditional online betting platforms. This is due to blockchain and decentralized betting, in particular, being relatively new kids on the block.
However, the COVID-19 pandemic has shifted many traditional paradigms, and the adoption of decentralized betting platforms now grows at an increased pace, as they allow anyone to bet on anything anywhere around the globe, instead of being limited by lockdowns and canceled sports events.
- The need to be familiar with crypto-fiat exchanges and operate cryptocurrency freely. However, this isn’t rocket science, and anyone can learn to do it.
- The need to buy cryptocurrency elsewhere and deposit it to the platform. Sportbet.one solved this through the integration with a third-party fiat-crypto conversion platform.
- The need to purchase the tokens of the platform and the risk of an exit scam. This is an ever-present danger that can be solved by choosing the right decentralized sportsbook provider in the first place. Reputable platforms allow you to bet in popular cryptocurrencies, not just their own tokens.
As you see, decentralized betting is a worthy alternative to traditional sportsbooks that successfully solves all the challenges you are used to experiencing with online betting.
Decentralized betting platforms like sportbet.one, built on EOS blockchain, enable you to withdraw your earnings to an EOS wallet without complex and lengthy KYC procedures. There is no need to pay tax on spread betting in the UK, US, or any other country. The payouts are instant once the BTC sports betting terms on the smart contract are settled. You can withdraw money to any crypto exchange and top up your account through the integration with a third-party provider.
Thus, decentralized betting results in a much better customer experience due to enabling the features traditional sportsbooks cannot provide. Click here to try it out yourself!