The cryptographic transition that the online casino industry has experienced since the inception of Bitcoin in 2009 has been remarkable. The early days of SatoshiDice (a simple protocol that allowed to players to gamble on the outcome of a cryptographically generated dice) has now moved forward in to other areas including traditional games like roulette, blackjack and baccarat. However, one of the most prominent growth sectors in this particular industry is Bitcoin sports betting. These platforms offer the exact same markets, if not more, than a traditional sportsbooks, however the key difference is they exclusively accept Bitcoin as a means to deposit, stake and withdraw. As one would expect from the Internet of Things, there are a plethora of benefits to making this conversion from fiat to digital – here’s why.
One of the most frustrating aspects to using a traditional fiat sportsbook is that payouts are at the helm of both the payments department and the conventional banking industry. For example, once you have gone through the rigmarole of identifying yourself, you will then need to submit a withdrawal request with the operator. This can average 2-3 days, which is nothing more than a commercial ploy. What you will notice is that during this holding period, you will have the option of reversing your withdrawal, which means that the funds go straight back in to your betting account.
The operator hopes that you will then continue playing and ultimately lose the funds that you were hoping to take out. On the contrary, Bitcoin sports betting operators will process your withdrawal request anywhere between a few minutes and a few hours. Moreover, unlike using a debit or credit card which can take an additional 3-5 working days before the funds reach your account, wallet-to-wallet transfer take no more than 10 minutes.
We are not naïve to think that online sportsbooks are not in the business to make money. Of course they are. However, what we are against is when this money is made in an illegitimate manner. Time and time again we hear about players who have had their winning bets canceled, with no explanation as to why this has occurred. Ultimately, when you sign up to a traditional sportsbook, you will be required to sign a range of terms and conditions. Within these conditions you agree that the operator can cancel a bet at any stage of the event – at their discretion.
This would never happen at a Bitcoin sports betting operator as every single bet is available to view on the public ledger. Unlike their fiat currency counterparts, Bitcoin bookies cannot hide their internal gambling data as each and every transaction in posted straight to the blockchain. This means that the minute an operator decides to start engaging in unethical actions, they would so be found out.
Enhanced Identity Demands
Since the turn of the century, anti-money laundering and terrorist financing laws have become more and more stringent, with governments subsequently deciding to include gambling organizations within the remit of identity regulations. This means that when you open an account with a traditional bookmaker, you will be required to submit obscene amounts of documentation before you can withdraw any funds. On a good day this will include a passport, bank statement and copies of your debit/credit card. On a bad day, operators are known to go as far as demanding notarized copies of ID and even selfies. This also links in to the issues of slow payouts, as the verification procedure can delay the withdrawal process even further.
Fortunately, Bitcoin sports betting operators do not follow a similar set of draconian principles. This is not because they are choosing not to comply with gambling legislation, but because they do not need to. The aforementioned identity checks are demanded because real-world fiat currency is involved. However, as Bitcoin and other digital currencies do not fall under the same bracket, Bitcoin sports betting websites normally allow you to gamble anonymously. This is no different to walking in to a betting shop or going to a horse racing track, as you would not be asked to identify yourself either.
In comparison to Bitcoin sports betting operators, traditional online bookmakers have a significant amount of overheads to cover. One of the main contributing factors correlates to the issues of compliance. This is because bookmakers will need to employ entire risk departments, just to ensure they remain client with anti-money laundering, terrorist financing and anti-fraud legislation. Not only this, but engaging with fiat currency deposits and withdrawals carries additional charges that are subsequently passed on to the player through unfavorable betting odds. Of course the bookmaker needs to make a guaranteed long term profit, however wide spreads are a disservice to the punter.
On the contrary, the above overheads do not exist in the world of Bitcoin sports betting. Both risk departments and fiat currency charges can be avoided in their entirety, as the only currency being wagered is Bitcoin. These savings are ultimately passed on to the player in the form of enhanced betting odds.
Throughout the entire gambling experience, Bitcoin sports betting platforms make perfect sense. Not only will you be accustomed to a more transparent protocol in the form of the public blockchain, but you will also receive your winnings substantially quicker. Moreover, no longer do you need to worry about the bookmaker voiding your bet once it has been determined a winner, nor will you need to submit countless amounts of documents. All in all, the player-to-sportsbook relationship has been revolutionized by Bitcoin and its underlying blockchain technology. What are you waiting for?