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Blockchain Application in the Gambling and Sports-betting Industry

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Human beings have an inner instinct of always going for growth and success. Thus, in our everyday life, we are looking for ways to complete our tasks in the cheapest, fastest and most comfortable way possible. It for this reason the gambling industry is growing at an unfathomable rate.

In the year 2018, the global gambling industry recorded a growth of 4.1 (CAGR) reaching 449.3 billion compared to 2014. Further, market size estimates indicate this growth will continue to soar and will net $565.4 billion in revenues by the year 2022 which is a CAGR of 5.9 per cent.

Factors leading to this Growth

Several factors are likely to drive this expected growth in the gambling industry. Among these include; rapid urbanization, an expansion of the experience economy, growth of emerging markets and rise of mobile gambling. In fact, in coming years this growth will further be fuelled by increasing use of social media, countries looking into legalizing gambling, an attractive source of revenue for governments which they can no longer ignore. Otherwise, the lack of government intervention will only lead to the proliferation of underground gambling, which is worse due to certain risks. These uncertainties include losing your money either once authorities pounce on your illegal gambling or the risk of losing your money through the gambling company colluding against you. Away from that, perceived global economic growth and changing consumer gambling habits are other factors likely to drive future growth of this lucrative industry.

A Close Examination of the Gambling Market and its Future

The global gambling market is segmented into three different types and these include sports betting, lotteries, and casinos. Sports betting is the fastest-growing segment with a CAGR of 6.9 per cent while the lotteries in the period ending 2018 were the biggest gambling market with a revenue share of $207.3 billion which is 46.1 per cent of the entire global gambling market size. Each of these 3 main categories is further segmented into either offline, online and virtual reality (VR) which is categorization depending on the sales channel.

Going forward, online gambling is poised to be the leading segment in the gambling industry with a market size forecast of $102.97 billion by the year 2025. In fact, this growth is forecasted to happen between 2019 and 2025 with a CAGR of 11.5 per cent. Factors driving the growth of this segment include a surge in adoption and use of smartphones as well as improved access with ease to casino gaming platforms. Precisely, an increase in Internet penetration plus the availability of the affordable mobile application for betting will continue to spur the growth.

Globally, Asia-Pacific is the largest market with 32.7 per cent of the gambling market as of 2018. Regions closely following are America and Western Europe. An interesting market trend, Africa and Asia-Pacific will be the fastest-growing regions for the global gambling market at 7.7 and 7.9 respectively. South America and Eastern Europe will grow at CAGR of 6.13 % and 6.12 % respectively.

Interesting Fact: “Africa and Asia-Pacific will be the fastest-growing regions for the global gambling market at 7.7 and 7.9 respectively

Blockchain to Play a Key Role in the Gambling and Sports Betting industry

Gambling and sports betting especially those sold by online channels will continue to flourish as aforementioned. However, the gambling industry has its own set of bottlenecks, which could hinder or stall the anticipated growth. Some of these challenges include:

  1. Lack of Transparency and Trust
  2. Fraud
  3. Infective Payment Systems
  4. Lack of personal privacy
  5. Inaccessibility
  6. Huge costs
  7. Centralization of Prediction Markets

Blockchain technology is witnessing its application in almost all industries at a high growth rate. The technology has been successful in its application in the cryptocurrency domain owing to its important features including immutability, decentralization, transparency and improving data security and safety. Likewise, these features can or already being applied to transform the gambling industry. More so, blockchain technology is proving to be the silver bullet solving challenges listed above encountered in the gambling industry.

  1. Improving Transparency and Trust

I bet we all know of the statement “the house always wins” meaning online gambling users will lose in one way or another. Even if it means the house using tricks and scams to make more money. Online gambling businesses earn money by having players lose more often. Users are inclined to believe these companies do have a special switch that will occasionally turn the odds against their favour. Consequently, knowledge of these vices from casinos by players has led to many keeping away from gambling. As a result, online gambling sites end up losing money.

Online gambling companies using blockchain technology are harnessing this technology to bridge the gap initially eminent between users and operators. For instance, using blockchain smart contracts aid verification of records and this is available via a shared ledger. Hence, it is not possible to manipulate data the last minute to favour the house against the players, thus, increased transparency.

  1. Reducing Fraud

Online fraud is a major concern for most gambling sites users. Moreover, it accounts for significant loses in the industry. One possible way of executing fraud is a player acting smart and decide to defraud an operator when withdrawing or even depositing money into the casino. Other possible existence of fraud in the gambling includes fraudsters who hack the gambling site’s system by accessing it through the servers’ back door. Worse still a lot of online gambling sites will require personal information of users and this may be an incentive for fraudsters to hack such systems to access the system and put their hands on such important data which online casinos cannot guarantee of its security.

Blockchain technology is best suited to solve this challenge for the industry through the implementation of high-level encryption used to secure transactions and data on gambling platforms. Further, having the blockchain’s distributed ledger renders it impossible to manipulate anything even by hackers in the system. One such platform with immense levels of encryption and has been successful in securing user’s funds and data is Playbetr.com with its winning automatically calculated and sent to winning users transparently and securely thanks to smart contracts.

  1. Effective Payment Systems

Traditional banking systems are a major hindrance to the flourishing of online gambling and sports betting platforms. This is because it is possible to withdraw money into a bank account or on a credit card only to have the bank confiscate or block the transaction. More worrisome is the fact a player using traditional money withdrawal options such as PayPal or banks they may have to part with a huge commission or unexpected fees. Again this may not be a guarantee that still the financial service providers will ensure processing of player’s payments. As a result, users have been left to wait for days or encounter other payment delays with no explanation given by the banks.

Gambling and sports betting platforms using blockchain technology such as Playbetr.com have the option of issuing own native cryptocurrency that will be used within their ecosystem. In fact, the Ethereum casino and sportsbook uses its native gaming coin known as Playbetr Coin (a stable coin pegged to the USD). Also, the online gambling platform supports other cryptocurrencies for deposit and withdrawals including Ether (ETH), Bitcoin (BTC), Litecoin (LTC) among others. Thus, allowing fast processing of payments when compared to the use of fiat money or traditional banking systems.

  1. Introduction of Anonymity

Conventional gambling companies are required by law depending on the country of operation to comply with certain regulations that may impede the realization of anonymity for players. For instance, it is common when creating an account and further during verification to face the challenge of having to supply numerous documents. Not only does this process make the whole exercise of creating account lengthy but also time-consuming this limiting number of players.

Implementing blockchain technology allows gambling platforms to introduce anonymity feature. This means users do not go through the rigorous process of sharing their personal information when creating accounts or transacting. This is an important feature to lock out hackers who may find it attractive to hack such platforms.

However, the need to have user’s enjoy anonymity is being undermined by government intervention through introduction of AML and KYC legal requirements for companies dealing with cryptocurrencies. Hence, lots of gambling platforms will request users to verify own identity before transacting on their platforms to comply with legal requirements.

  1. Increase Accessibility

A lot of countries around the world are yet to legalize online gambling thus prohibit betting and gambling activities. Therefore, denying gambling enthusiasts access to a game they love leads them to use illegal bookmakers. Eventually, players who use such illegal services end up losing their money often with illegal bookmakers failing to pay because it is not enforceable by law to have them honour player’s payments.

Blockchain technology solves this challenge by allowing gambling entrepreneurs to develop decentralized platforms with a feature of using cryptocurrencies. This use of digital currency makes the platforms accessible all-over the world. Besides, withdrawal is quick, no limits and payments are irreversible and automatic thus no cases of fraud or non-payment.

  1. Rewarding Loyal Customers

Conventional gambling platforms are known for not rewarding their loyal customers. If a player loses despite their loyalty they end up not receiving any compensation. Eventually, lots of traditional gambling companies are losing their customers whom they could retain with ease only if they leveraged on technology with an attractive incentive scheme.

Blockchain-based gambling companies significantly reduce their operational costs by eliminating the costs of intermediaries and losses initially incurred due to fraud. Therefore, they can use such savings to engage and retain loyal players by returning some portion of money lost to users monthly or even award the gamblers special bonuses.

Playbetr.com is one such company with an attractive loyalty reward program. Each time a user plays on the gambling site they earn certain loyalty rewards. For instance, the casino has VIP benefits namely rakeback, lossback and betback, which are all, based on the user’s status points and what’s more, all these are paid on all wagers.

  1. Huge Costs

Casinos do take a certain average percentage share (house edge costs) from their players as a strategy of ensuring the survival of the platforms. Incomes realized by casinos using this approach are used to pay employees and profits that go to shareholders.

Gambling platforms using blockchain technology can cut down house edge costs by leveraging on their other operational costs, which are at the minimum because of using this technology.

  1. Decentralized Prediction Markets

Prediction markets have always been in existence but with centralized structures. Therefore, this centralization leads to many limitations and risks such as lack of global access, a limitation on types of markets to trade or create and having the players place their trust on market operators to resolve markets correctly and not to steal funds. Centralized prediction markets are also costly with some charging fees as high as 10 per cent of profit while others have limited betting options.

Integrating blockchain technology onto a gambling platform improves the opportunity of users to access decentralized prediction markets. As a result, gamblers can use a betting arena to place bets on almost everything. Betting choice range from sports to elections with players also have access to the most accurate data leading to the most probable outcome of events without market operators interfering.

 

 

 

 

 

 

The post Blockchain Application in the Gambling and Sports-betting Industry appeared first on coinweez.

Source: https://coinweez.com/blockchain-technology-disrupting-the-gambling-industry/?utm_source=rss&utm_medium=rss&utm_campaign=blockchain-technology-disrupting-the-gambling-industry

Blockchain

ETH Miners Start Selling Their Holdings As Sentiment Turns Bearish

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ETH miners start selling their holdings as the sentiment turned quite bearish on Twitter so can we expect an incoming correction? Let’s find out in today’s ethereum news.

The recent data revealed that ETH miners start selling significant ETH holdings after the latest price jump to $420. The Twitter sentiment turned bearish for the cryptocurrency after the price drop. Ethereum miners which are the lifeblood for the algorithm behind the Ethereum blockchain, have gained the most from the ongoing decentralized finance craze. They made a total of $166 million in fees in September which is a new monthly all-time high and about six times more than Bitcoin miners.

eth miners
ETH Miners Behavior. Source Santiment

As far as the balances go, they started accumulating bigger portions at the start of September as the graphs show. Apart from slight drops in holdings, the trend continued for a few days. However, the price of the second-biggest cryptocurrency surged to a 7-week high of $420 as miners started changing their minds. The data analytics company Santiment outlined the massive drop for the ETH miner holdings. The sell-off coincided with Ethereum’s price peak but the second-largest digital asset by market cap which lost some steam and trades now below $400.

eth twitter
Ethereum Twitter Sentiment. Source Santiment

Despite being one of the best-performing assets since 2020 started, Santiment’s data suggested that ETH could be heading further south. Apart from miners depositing their ETH coins, the analytics companies say that the traders’ FOMO and the increased on-chain data activity that is visible recently, slowed down. The Twitter sentiment turned against Ethereum which was expected but the sentiment performs in correspondence with the price most of the time. When ETH dipped to about $300 the metric remained in negative territory for a few weeks consecutively.

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On the contrary, when ETH started pumping, the sentiment pumped as well. Now the trend reversed after a sharp spike but the analytics company concluded that since the sentiment flipped into bearish territory, the ETH token could be in for a few short-term price drops as well. As reported earlier, Ethereum is facing huge price movements as it is winding up for another shot of breaking the $420 level. The positive fundamentals for Ethereum are supporting the bulls in the near-term.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/ethereum-news/eth-miners-start-selling-their-holdings-as-sentiment-turns-bearish/

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IDEO CoLab Unleashes $21 Million Early Stage Crypto Fund

The venture fund has helped incubate more than 30 blockchain startups since 2018.

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In brief

  • IDEO CoLab Ventures is backed by IDEO, Avanta Ventures, GS Group, Hansha Asset Management, and Fineqia.
  • The venture capital fund sees crypto and blockchain as a key driver of societal change.
  • IDEO CoLab Ventures has already invested in Braintrust, Handshake, and FalconX.

IDEO CoLab Ventures, which has been investing in blockchain firms since 2018, has announced a $21 million fund specifically for early stage crypto firms. So far, the fund has invested in and helped incubate more than 30 crypto and blockchain startups. 

IDEO CoLab Ventures is backed by design company IDEO as well as GS Group, Hansha Asset Management, Fineqia International, and Avanta Ventures (the venture capital arm of CSAA Insurance Group). Executives from Coinbase, Twitter, and Fortress have also signed on.

“Our deep capabilities in design, product development and blockchain technology enable us to attract world-class entrepreneurs and startups from around the world,” Ian Lee, managing director of IDEO CoLab Ventures, said in an announcement

“This has led to unparalleled investment opportunities and the chance to collaborate with some of the world’s best founders and companies on the development of this important technology and the businesses that are being built on it.”

IDEO has helped incubate firms with a range of services, including product, design, and customer research. IDEO CoLab Ventures investments have included Braintrust, a user-controlled talent network; Handshake, a decentralized naming and certificate authority; and FalconX, a digital asset trading platform. 

It’s looking to back blockchain and crypto projects focused on developing Web 3 infrastructure, open finance products, and innovative networks and marketplaces.

“We’ve had a longstanding partnership with IDEO CoLab, collaborating on investments and a blockchain solution for insurance verification,” Debbie Brackeen, executive vice president and chief strategy and innovation officer at CSAA Insurance said in the Medium post. 

“Blockchain is a disruptive technology that will affect many industries, and we’re excited to continue our partnership with IDEO CoLab Ventures who is at the forefront of this important work.”

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How to use a Bitcoin ATM in 2020?

Bitcoin ATMs are the new trend in 2020. ATMs allow Bitcoin to fiat withdrawal and more. ATMs also allow Bitcoin buy and sell options. With digital currency on the rise, the need for automated teller machines (ATM) is a mandatory requirement of consumers. Currently concentrated in the North American region, more and more countries are […]

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How to use a Bitcoin ATM in 2020? | Cryptopolitan

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  • Bitcoin ATMs are the new trend in 2020.
  • ATMs allow Bitcoin to fiat withdrawal and more.
  • ATMs also allow Bitcoin buy and sell options.

With digital currency on the rise, the need for automated teller machines (ATM) is a mandatory requirement of consumers. Currently concentrated in the North American region, more and more countries are joining the bandwagon. Very much similar to regular ATMs, Bitcoin versions enable buying, selling, and sometimes exchange into other currencies as well.

Bitcoin ATMs offer a regulated platform ensuring FinCen (Financial Crimes Enforcement Network) required compliance of adhering to KYC (know-your-customer) and AML (anti-money-laundering) laws. It drives away the volatility usually associated with cryptocurrency and provides users with high-end security of confidential data and digital assets with minimum obligations as compared to digital exchanges that make users go through meticulous procedures for simple transactions. There are about 56 manufacturers with working ATMs installed across the globe.

How to use a Bitcoin ATM?

Purchasing Bitcoins through ATM is a fairly easy process of entering one’s registered mobile number following by entering the authentication code received via SMS and finalizing the transaction by scanning the QRcode on the soft wallet in the mobile app.

Bitcoin wallet that includes a confidential key (Bitcoin address) is what one needs to transfer Bitcoins through Bitcoin ATMs. Options of hardware and software wallets are readily available using which bought crypto funds are transferred to preferred recipients.

Trading away Bitcoins is just as simple as buying them. Selecting the sell Bitcoin option on the Bitcoin ATM followed by entering the registered mobile number followed by scanning one’s ID and take it forward by mentioning the amount of BTC you want to sell. 

You are halfway thereby scanning the QR code and receiving a message confirming the receipt of the entered amount by the ATM. Finally, navigate through the redeem ticket option and pickup conventional currency against the digital ones sold.

It’s a bit of a process but that also goes for the regular ATM machines too. Nevertheless it is well suited to new players in the field.

Johnson Go

Johnson Go

Blockchain enthusiast, project management specialist, writer and crypto investor. JG deals mostly with problems and solutions of crypto projects and provides market outlook for investments. He contributes his analytical skills to projects.

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