DeFi sports betting is a way of gambling on sporting events using the power of the blockchain and cryptocurrencies. Also known as decentralized sports betting or peer-to-peer betting, it’s a rapidly growing sector that offers several major advantages over traditional sports betting processes.
How does it work and what are the key points to understand about this kind of crypto sportsbook before you bet? We’ll be looking at how the best decentralized sports betting sites work and what benefits they provide. This will reveal how the likes of highly competitive odds and a greater degree of transparency are among the highlights that are helping to drive this industry forward.
Key takeaways
- Transparent betting via blockchain ensures fairness and low fees.
- Decentralized sites use smart contracts for smooth betting.
- Bet with various cryptocurrencies, including stablecoins.
- Avoid intermediaries for better odds and security.
- Easy registration without banking details required.
- Oracles verify real-time sports data for accuracy.
- Consider crypto volatility and regulatory challenges.
- Growth expected with AI, NFTs, and VR integration.
Basics of Decentralized Finance (DeFi)
To get to grips with the concept of decentralized gambling in sports, we need to start with a general look at decentralized finance (DeFi).
DeFi – A Peer to Peer Approach
This is a modern way of carrying out financial transactions that removes the need for third parties or centralized institutions like banks. This is why it’s called peer-to-peer betting, as people carry out their betting directly with the other party.
Other types of DeFi products include loans and insurance. In fact, the overall industry was valued at $22 billion in 2022 before rising to almost $24 billion the following year. It’s expected to grow to $48 billion by 2031 as more people discover this way of handling their finances.
The growth of DeFi hasn’t been without its problems and setbacks. Rugpulls and scams have been present in the crypto market, which makes it even more important to understand what we’re getting into. The gambling and sports betting industry has the benefit of being regulated, so every reputable sportsbook and live casino has a license in place.
The Blockchain and Smart Contracts
This decentralized betting activity takes place on the blockchain using cryptocurrencies. This allows the users to introduce smart contracts as a way of carrying out transactions and offering products.
The blockchain is a highly secure database made up of ledgers that record every transaction clearly. DeFi applications use smart contracts to communicate with the blockchain. This makes the processes transparent on decentralized exchanges and lending platforms, where every transaction can be seen at all times.
To ensure that sufficient funds are always available to complete transactions and offer a full range of services, assets on the platform are aggregated to form liquidity pools. DeFi continues to grow and diversify, but the basic building blocks are as described, with new ideas added to them.
How DeFi Sports Betting Works
The DeFi approach has reached the gambling industry to create decentralized casino games and sports betting opportunities. This has led to a massive change from the way that traditional sportsbooks work but the basic idea is still to place bets on the outcomes you think will occur.
The difference is that your bet is made in a blockchain setting. From the point of view of the person placing the bet, there is no difference between making a crypto sports bet and using a conventional sportsbook.
However, the DeFi element lies behind the scenes. It makes the whole process smoother and ensures that you always get the best odds as well as a fair result.
We could consider the move towards decentralized sports betting as being similar to the move from land-based betting to online bets at the turn of the last century. It’s kept the same basic process in place but used emerging technology to make it more convenient for everyone.
Smart Contracts Ensure Fairness in Sports Betting
Smart contracts are crucial in this industry. These are self-executing contracts set up with all the details needed for the transaction to be carried out. This means that everything is included so that the bet is settled fairly and immediately once the result is known.
The end user doesn’t see the smart contract when they place a bet. It’s simply there in the background to make the whole betting process go more smoothly.
Decentralized Oracles Provide Real-Time Sports Data
Getting verified data confirming the outcome of real-world sports games and events is a big part of the process. This is needed to confirm which wagers have won and how many players should be paid their winnings.
Imagine the delays and frustration if you had to wait for the result of your bet to be confirmed. People want to be able to place their sports bets and get the outcome immediately. Of course, this helps in terms of being able to withdraw any winning quickly or place the money on another bet right away.
The issue here is that blockchains are set up as isolated networks, so they don’t have access to the latest sports results. Because of this, they need to have external data fed into them through a decentralized oracle network, which is known as a DON. These DONs get the necessary data and verify it.
Tokens Maintain Transparency and Efficiency
While traditional sportsbooks use fiat currencies, some DeFi betting options include tokenization, This means that crypto payments are accepted and blockchain tokens are used as the native currency on the site.
It’s an efficient way of working in the sports betting industry, as it allows for fast transactions with low fees. This also ensures that sports bettors are more in control of their funds and can make crypto deposits and withdrawals easily.
What Tokens Are Used?
When you enter a crypto sportsbook or live casino, you’ll see a listing of the tokens they accept. As Bitcoin is still by far the biggest cryptocurrency at the time of writing, it’s no surprise to see it leads the way among the top crypto options.
Ethereum (ETH), Polygon (MATIC), Binance Coin (BNB), and TRON (TRX) are a few of the other popular tokens that can be used in this way.
Advantages of DeFi Sports Betting
There are some very good reasons why decentralized gambling on sports has become so highly regarded. Here are some reasons why this type of blockchain betting exchange has gained so much ground in recent years.
Increased Transparency
The best decentralized betting sites offer a secure and trustworthy sports gambling experience. Part of the reason for this is that they use the blockchain to give a high level of transparency and inspire trust.
You don’t need to worry about whether the result will be fair. Everything done in this way is secure and transparent.
Elimination of Intermediaries
With no intermediaries, a crypto sports betting exchange is designed to make the fees lower and improve the odds for sports bettors. This sort of decentralized gambling gives the best possible odds, which are updated constantly.
It also means that your data isn’t passed from one place to another. In particular, there is no need to add banking details to the sportsbook. This removes the risk of your bank account or card being accessed by hackers.
More Flexibility
The biggest benefit when placing a bet in this way is that you get a lot of flexibility. Whether you prefer BTC, the Binance Coin or a different crypto, it’s your choice.
As the digital currency market keeps expanding, we can now choose the coin that best suits our needs. There’s no reason to open an e-wallet purely for gambling purposes or to use a credit card you’d rather not bet with.
Enhanced Security and Privacy for Users
Security is a major concern for anyone looking to carry out online gambling, whether it is in casino games or sports betting. This is where the gambling industry has made huge strides through the use of the blockchain to increase the security of everyone concerned.
Cryptos are commonly stated as being the most secure way of handling cash online. Carry out the process well and your cash will be securely stored while you wait for the right bet to appear.
Access to a Global Market
In the past, most sports bettors could only access a local betting platform to look for the latest odds. This meant that they could access sports that were popular where they lived. However, the rise of decentralized sports betting has turned it into a truly global activity where it’s possible to look for odds across the planet.
This switch has allowed us to look for events and odds that interest us, no matter where they take place. From the NFL to the Champions League and the Cricket World League, the latest competitive odds are available at all times.
Risks and Challenges of DeFi Sports Betting
The relatively recent rise to prominence of decentralized casino and betting sites may make some users wonder if the crypto sports betting industry has ironed out any possible issues.
It’s true that there are some challenges that we should be aware of. Yet, the following issues can be overcome and aren’t enough to turn people away from this type of betting platform.
Potential Security Vulnerabilities
As we saw earlier, excellent security should be one of the key benefits of these betting sites. Yet, issues could arise if the site has been hurriedly put together and hasn’t been thoroughly tested.
This issue arises on DeFi apps that aren’t properly controlled or regulated. They could be part of a wider crypto scam or they could simply be sloppily coded and not well enough thought through.
Therefore, it’s vital that you look for recommended betting sites that take advantage of what blockchain technology offers. Look for a regulatory license and other details that show that the site has been professionally put together and fully tested. In that case, there is no fear in this respect.
Volatility of Cryptocurrencies
If you’ve ever bought cryptocurrencies in the past, you already know that the value of each token may fluctuate. In fact, cryptos are regarded as being highly volatile, with the price often varying widely in a single day. It’s not the type of investment for someone who wants to maintain their original amount of money over a long period.
This look at why Bitcoin (BTC) is so volatile suggests that positive news and hype can help to drive up the price. On the other hand, negative news stories and uncertainty in the market can cause investors to lose faith and the price to drop.
There are also possible links with other investments and commodities that aren’t yet fully understood. For example, some analysts suggest that the crypto market reacts to the latest stock market news. Others think that it’s more closely linked to the price of gold and other commodities that are used as a store of value.
This level of volatility can work both ways, as your tokens can either gain or lose value while you gamble. Let’s imagine that you want to gamble with BTC and use $100 to do this. You can buy your BTC at the current rate and then place your first bet.
If the price of Bitcoin increases, the value of your account in USD will grow impressively even if your bet only gives you a modest win. It might even increase if you lose a small bet but BTC climbs enough to cover this loss.
The opposite case is also possible. This is where you win a small bet but BTC loses more value than your winnings, seeing your overall amount diminish. Your attitude to these swings will be determined by whether you start to think in crypto terms or carry on thinking about your money in fiat terms.
How to Avoid Unwanted Volatility
The best move is to consider what token suits you best when you use a betting platform. Popular crypto like BTC, TRX, and ETH are generally accepted and each has some advantages to bear in mind.
Stablecoins like Tether (USDT) offer a less volatile experience. They might be suitable if you want to place your wagers on the betting platform without the risk of volatility.
Regulatory uncertainties and potential legal hurdles
It’s safe to say that cryptocurrencies are now firmly established in many parts of the world. The emergence of digital money hasn’t been without some issues, though. Many sports bettors may worry about setting up their first crypto wallet and whether the gaming experience is legal.
The first step is to check the legality of the crypto betting activity where you live. If both cryptocurrencies and online gambling are allowed, you’re good to go.
In some cases, online betting is regulated locally. So you need to choose a betting platform that has a license issued by the local central authority. In other cases, you can bet using internationally licensed sites that offer odds to people where you live.
Usability Challenges
The switch from traditional sports betting to DeFi crypto options with a smart contract isn’t difficult. Some newcomers may worry about the innovative features and the need to own digital currencies at first.
However, it will soon become apparent that decentralized betting isn’t difficult to get to grips with. You need to buy some crypto tokens before you can bet. This is easily done in a variety of ways such as on crypto exchanges or peer to peer platforms.
After obtaining crypto, you need to register on a decentralized sports betting site. The registration process is short and simple, with no need to include banking information. To make a deposit, copy the wallet address listed and send there the money you want to bet with.
A welcome bonus is often offered when you make a minimum deposit for the first time. This is a great way to explore the betting markets and see what to bet on. As well as traditional sports, you might want to look at virtual sports and eSports betting.
Many of the same sites offer casino games where you can place bets on games like roulette and blackjack. Slots from developers like Pragmatic Play are also available.
Apart from the welcome bonuses, ongoing promotions are offered. These deals give you the chance to collect extra funds or play other games on the site with free spins.
DeFi Sports Betting vs. Traditional Sports Betting
There are some important differences between betting on a decentralized betting exchange and using a traditional betting platform. The following table explains the main differences worth bearing in mind.
The Key Areas Compared
DeFi sports betting | Traditional sports betting | |
The use of intermediaries | No intermediaries are used. Peer to peer betting is offered, allowing users lower fees and faster transactions | Intermediaries used for banking methods and transactions |
How trust is shown | Trust is shown through the transparency of the blockchain. These decentralized sports betting sites should also have licenses from the regulatory authorities, were necessary. | License from the appropriate regulatory authorities. |
Fees and payout mechanisms | Low fees are achieved through the use of cryptocurrencies. Any winning bet can be cashed out quickly, although the welcome bonus and other promotions may have specific T&Cs | Fees for deposits and withdrawals depend on the third-party banking services used. Some withdrawal methods may be quicker than others. |
Welcome bonus and other offers | Expect a welcome bonus on your first deposit. The minimum deposit needed to claim this bonus will be listed in the T&Cs. Other offers will follow the welcome bonus. | A welcome bonus should be offered on the first deposit made, with clear T&Cs. Look for additional promotions. |
User experience and ease of use | Fast registration process with no banking information needed. Easy process for placing a bet with the smart contract approach used. | Short registration process. Linking a banking method may take a few moments before you can start betting. |
The Future of DeFi Sports Betting
We’ve already seen that decentralized sports betting is expected to grow impressively in the next few years. As more people use cryptos, we can expect them to explore the betting markets in this way.
With over 860 million crypto users and an 11% penetration rate expected by 2025, the growth in this market should go hand in hand with the rise of crypto betting with competitive odds. In addition, we need to take into account the following points.
Integration with Other DeFi Applications and Services
The defi sector in general is growing impressively as emerging technology is used to move it forward. One of the areas of most interest is the way it can help the unbanked population access financial services.
Some sources suggest there may be as many as 1.4 billion unbanked adults in the world. This number reveals the possibility offered by a transparent, easily accessible type of banking that anyone with internet access can use.
Technological Advancements
The current decentralized sports betting market uses the latest technology to offer odds that reflect the latest situation. With fast payouts and other games in the decentralized casino tabs that are often linked, this is a modern way of gambling. Yet, we can’t rule out further changes to make it even slicker.
For example, what if virtual reality and the metaverse were used to present bettors with an immersive viewing experience while betting? This could open up a new world of entertainment while waiting to see if the game works out as predicted.
Artificial intelligence (AI) is another new type of technology that is changing our lives in many ways. It offers many possibilities for anyone keen to make bets on their favorite game or sport. AI could analyze the market and help them make more informed predictions.
Any discussion on this subject also needs to cover non-fungible tokens, known as NFTs, these digital assets have already made their way into the sports world as fan tokens. They could add an extra element to the betting world by unlocking exclusive content and other useful benefits.
How to Get Started with DeFi Sports Betting
The introduction of decentralized sports betting is already well underway. This can be seen on sites like Evo.io where sports betting is coming soon. As one of the leading decentralized casinos, it has a live casino as well as slots and other types of games.
The addition of a crypto sportsbook will diversify this site by adding the latest odds on sports. With a variety of bets available on numerous sports, these sites let sports fans flick through an extensive range of sports and odds.
The Registration Process
To start decentralized sports betting, you need to follow the registration process. Each step is clearly stated on crypto sportsbooks. Depending on where the site is regulated, you might be asked to complete the (Know Your Customer) KYC process.
Getting KYC verification for sportsbooks gambling and sites with casino games is simple. You just need to upload the identity documents asked for. In some cases, you can leave this process until you’re ready to carry out your first withdrawals if you prefer.
Read the Welcome Bonus Terms and Conditions
Collecting the welcome bonus is a sensible way to get started on sportsbooks and live casino sites. This is a chance for you to start gambling and looking for good odds without using much of your own funds.
Be sure to read the welcome bonus T&Cs to start strongly. This is where you can see the minimum deposit needed and other details like what you need to do to make withdrawals after you play and win.
Evo.io is one of the leading decentralized casinos that lists decentralized sports betting as coming soon. You can easily register and start gambling on the crypto casino games before trying decentralized sports betting.
Decentralized Sports Betting to Carry on Growing
This look at the history and future of decentralized sports betting reveals how these crypto sportsbooks can offer the best odds and a slick way to place a bet or two.
The advantages we’ve looked at show why looking for sports betting odds on crypto sportsbooks is a good idea. Their range of benefits starts with a strong welcome bonus on a small minimum deposit and carries on with transparency and a smooth banking process for fast withdrawals when you win a bet.
Check out the latest odds and live casino on Evo.io to see how to easily place your first crypt bet. Getting started is easy and you’ll soon see why this sector has attracted high rollers as well as other users who are regular sports fans,
Crypto gambling has opened up lots of new possibilities for enjoying your favorite game with a bet. With sites like Evo.io continuing to innovate and offer great odds, you can join the crypto revolution without any fuss and start to play.
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