Photo Credit: Pixels.Com
Across the US, sports betting is becoming extremely popular and lucrative as more states move to legalize it. In Michigan, for instance, a recent report revealed that licensed sportsbooks made up to $32 million in revenue in a single month. This represented an impressive 20% increase from the previous month, highlighting the steady growth in the space. Across the country, it is even more promising, raking in over $11 billion annually.
One of the most notable reasons behind this growth is the adoption of cryptocurrencies. Digital tokens were initially introduced to the mainstream in 2017. Cryptocurrencies have since become established assets. Despite their relative volatility and speculative nature, their market cap is currently close to $3 trillion globally. But just how does crypto play a major role in sports betting? Read on to find out.
How crypto is used in sports betting today
Because cryptos are decentralized and not beholden to third parties, they are some of the most efficient forms of payment today. This is why brands like Microsoft and Starbucks now accept certain tokens for payments. It’s this efficiency that has led tokens to be used on crypto sports betting website. On the premier crypto betting platform Thunderpick, users can choose from a selection of tokens, including Bitcoin, Tether, Ethereum, Dogecoin, and more, for deposits and withdrawals. Using the coins, users can make timely bets on live and upcoming matches across multiple betting markets with little to no processing fees. This includes major sporting leagues such as the NFL, NBA, and MLB. To help encourage user adoption, trusted crypto sports betting operators often offer special bonuses and promotions. On the aforementioned Thunderpick, they offer 100% deposit bonuses for crypto users.
Currently, PlayToday estimates that up to 48.6% of all crypto holders in the US own these tokens specifically for gambling purposes, which includes sports betting.
Photo Credit: Pixels.Com
Why crypto benefits the sports betting industry
As mentioned earlier, because cryptocurrencies are decentralized, they’re not limited or monopolized by regulators like banks or industry overseers. As a result, they provide a slew of additional benefits beyond just swift and cost-efficient financial transactions. Firstly, cryptocurrencies provide an unmatched level of anonymity. After all, crypto accounts can be opened anonymously. On top of this, all transactions are encrypted and logged on the blockchain. In fact, it’s this link to blockchain technology that has even pushed major sports betting entity FanDuel to launch crypto-focused sportsbook BetHog. The fact that the blockchain is nearly impossible to hack or manipulate, means it bodes well for bettors, who traditionally have to supply sensitive personal information when betting with fiat currencies. Historically, this has put them at risk should a data breach occur. With this added level of security, betting platforms can more confidently service customers, while bettors can transact with less risk to their cybersecurity.
Secondly, in line with the above, cryptocurrencies help make sports betting more accessible. Notably, managing a crypto bankroll is less exclusive than that of fiat currency counterparts. Unlike fiat currency accounts, which require owners to accomplish multiple requirements, crypto accounts can even be opened and managed remotely following a straightforward sign-up process. This opens up opportunities for more interested parties who want to try their hand at sports betting. To illustrate, those with a self-custody Coinbase Wallet don’t even need to have or supply an email address. On top of this, again, because they’re decentralized, cryptocurrencies are easier to use when participating in international sports betting. So long as the sports betting site a bettor is using is recognized and reachable in their current location, they can use their crypto to make bets without having to worry about exchange rates or international transaction costs.
Will crypto overtake fiat currencies in sports betting?
Having said all this, some may wonder if the emergence of crypto in sports betting means that fiat currencies will soon be pushed out of the sector. However, this is not likely to be the case. Fiat currencies are still used more widely than digital tokens, and there still remains some trepidation around cryptocurrency’s long-term stability that makes some bettors hesitant to make the switch. That said, given that a lot of this has to do more with a lack of understanding of crypto processes, improving public awareness surrounding how to use these digital tokens is expected to improve rates of crypto penetration. By the end of 2025, the number of crypto asset users worldwide is even poised to hit around 900 million. Should even a small percentage of these people use their tokens for sports betting, that would reflect a huge boost for the industry.
