The growth of cryptocurrency users is making an impact on different online industries, and that includes the sports betting section.
Global online sports betting has already reached a market value of $74.2 billion in 2021, and it’s forecasted to grow up to $129.3 billion by 2028 with a CAGR of 9.7%. These numbers simply show how people are now more comfortable placing their bets online.
It’s easy to understand why online betting is all the rage. It’s convenient and sportsbooks today already accept popular banking options, so transactions are made easier. Banking is made easy online but it continues to evolve and the use of crypto is getting more popular in online gambling.
Impact of Cryptocurrencies on the Sports Betting Industry
Cryptocurrency options are now more available at online casinos and sportsbooks. There are online gambling sites like BetOnline, 22Bet, 10CRIC, Bovada, MyBookie, and CloudBet that now accept crypto coins as a mode of payment.
There are even online gambling sites that are exclusive to cryptocurrency players. Some of the most popularly used crypto coins in the online gambling market right now are Bitcoin, Litecoin, Bitcoin Cash, Ethereum, and US Tether.
The use of cryptos is making more gamblers feel at ease when placing their bets online. That’s because the technology behind cryptocurrencies called blockchain is ensuring that all transactions are recorded and hard to manipulate.
Crypto simply offers greater flexibility and for casino and bitcoin sportsbook operators themselves, it’s generally cheaper to process payments made with cryptocurrencies. That’s why many online gambling sites are pushing for crypto payments in creative ways.
Pros and Cons of Using Cryptocurrencies
There are advantages and disadvantages to using cryptocurrencies just like using other forms of online payments. We can’t say that cryptos are never prone to hacking and malicious activities, but compared to most online payment options, there seem to be more advantages in using crypto coins.
Here are some of the reasons why more and more online gamblers are starting to transact with cryptocurrencies.
- Low transaction fees. Using Bitcoin and altcoins is much cheaper and sometimes even free at certain online gambling sites. You’ll rarely see an online casino and bookie charge fees comparable to bank card fees that could go as high as 15% of your transaction amount.
- Generous crypto bonuses. Since it’s mostly cheaper for operators to process crypto transactions, they can afford to reward players playing with them. There are sites like BetUS with a 200% crypto bonus up to $2,500.
- Fast Transactions. If you’re looking for fast payouts, you will want to consider playing at crypto sportsbooks. Many bookies that accept crypto can process payouts instantly which is so much faster compared to other options like bank transfers that could take up to 7 business days to process.
- Anonymous Gaming. Playing anonymously is made possible thanks to crypto. Anonymous betting sites allow people to have a betting account by only setting up a username and password. Crypto transactions only require a wallet address and/or tag, so that’s anonymous gaming right there.
- It’s not always taxed. So far, only a few countries tax crypto transactions like India, Austria, Singapore, Norway, Denmark, and France.
Here are the disadvantages of using cryptocurrencies:
- Crypto coins are volatile. Volatility is always a reason why it’s not 100% great to use crypto all the time. Bitcoin alone fluctuates so much, and that’s because it’s influenced by supply and demand, user sentiments, and government regulations. Media hype can also easily affect crypto values.
- Country restrictions. Aside from how there are countries that tax crypto use, there are also some that completely prohibit the use of crypto like China, Algeria, Bangladesh, and parts of the Middle East.
- Gas fees for conversion. While online gambling transaction fees for crypto use are either low or non-existent, you’ll still need to convert cryptos to fiat currencies if needed. Some coins like Ethereum can have high gas fees or transaction fees charged by crypto networks.
What the Future Looks Like for Crypto Betting
Despite the popularity of crypto use in online gambling, it’s still hard to predict what exactly its future is. There are a few factors to consider that could change a lot about crypto transactions like local regulations and crypto value, especially Bitcoin.
Still, it seems like crypto use is headed in a positive direction because more local governments are figuring out how to make cryptocurrencies less appealing to cybercriminals.
When more laws and guidelines are in place for crypto use, more interest will surely spark once again, and more people will be using crypto in their online transactions including online gambling.