Hot Features
Premium
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Cryptocurrency is growing at a blistering pace, and so is the sports industry. Obviously, the two had to meet at some point, but you may not be aware of the extent to which Bitcoin is already ensconced in sports.
Let’s look at how Bitcoin is fast becoming the de facto currency for anything related to sports.
Online Sports Betting Through Bitcoin
When Wyoming became the latest state to allow sports betting in Sep ’21, it was hardly a newsworthy occasion since Wyoming is one of the least populous states in the country.
But one interesting thing caught the eye of sportsbook operators and sports betting fans all over – the state was the first to draft guidelines for using Cryptocurrencies in sports betting.
This is merely an acceptance of a phenomenon that most sports betting enthusiasts already know – how much Bitcoin and other cryptos have already permeated the online betting system.
Is Bitcoin Sports Betting Legal?
Yes, sports betting using Bitcoin or other Cryptocurrencies is very much legal. If you are betting in a sportsbook that is owned and operated outside the country, then the site is not bound in any way by US legislation, and this is how most Bitcoin betting operates right now.
As a sports betting enthusiast, you can deposit and withdraw your Bitcoin with zero risk of legal ramifications or prosecution.
How To Use Bitcoin For Betting?
In order to start using Bitcoin for betting, the first step is to identify sportsbooks that allow crypto transactions.
One of the best resources to identify a good sportsbook is sportslens guide about sports betting with bitcoin, where you can find reviews of the best Bitcoin sportsbooks in 2021 and a cover of everything you need to know to bet using Bitcoin. It provides honest reviews and relevant information that lets you make an informed choice in order to stay invested in crypto while you bet.
Once you have identified the right sportsbook, the process is fairly simple:
- Sign up to the sportsbook which you chose
- Create a crypto wallet on their site
- Set up an exchange account for trading Bitcoin
- Transfer your Bitcoin to the crypto wallet
- Shift your Bitcoin into the betting account and start placing bets!
Is Using Bitcoin For Online Sports Betting A Good Idea?
Everything has pros and cons, but using Bitcoin for online betting has many advantages and a few disadvantages. Weigh the pros and cons for yourself, and make the right choice:
Pros
- Bitcoin transactions are much faster than traditional currencies.
- Deposits and withdrawals are safe. Crypto transactions don’t fail or get declined.
- Sportsbooks offer higher limits for bettors using Bitcoin.
- Bitcoin records are transparent (because of the public ledger)
- Bitcoin transactions are private. No banks or government agencies are involved.
- Bitcoin is a universal tender. It does not require an exchange.
- There are no currency conversion fees, making it cheaper for transactions.
- Sportsbook operators offer better bonuses and special offers for crypto bettors.
Cons
- Bitcoin is still not accepted as legal tender in many countries.
- If you make a mistake with a Bitcoin transaction, there is no central agency (like a bank) that can reverse it.
- Bitcoin prices are extremely volatile. You need to regularly track changes to stay on top.
- In the case of sports frauds, it is very difficult to catch match-fixers if they use Bitcoin.
Team Sponsorships
A recent poll of sports fans about cryptocurrency threw up some interesting numbers:
- Nearly half of all sports fans understand cryptocurrency, and nearly a quarter even own some of it. 2 out of 3 “avid” sports fans are familiar with it
- Younger men, the most prominent category of sports fans, are also more likely to be comfortable with cryptocurrency.
- Only 39% of adults are fully familiar with Bitcoin and other cryptocurrencies as compared to other investment options like stocks (61%) and mutual funds (49%).
The fact is that crypto is still confusing for the average person. That’s why crypto-focused companies are looking at audiences that understand crypto and are willing to invest in it.
Since the young male sports fan seems to fit the bill perfectly, that’s where their advertising dollars are ending up more often than not. Sample the following recent deals to understand this better:
- BitPay started the trend in 2014 by signing a deal with ESPN.
- CashBet became a sponsor for Arsenal (soccer club), becoming an official partner in 2018
- The Drone Racing League (DRL) signed a $100 mn title sponsorship deal for five years with blockchain-focused company Algorand.
- MLB signed up with FTX to get their logo on the refs’ uniforms
- UFC ($17.5mn) and Formula 1 ($20mn) both struck a deal with Crypto.com
Player Investments
Young male athletes are the perfect demographic to understand Bitcoin and also have oodles of cash lying around as well. This makes them the perfect people to invest in Bitcoin as part of their asset portfolio.
Several players are known to accept Bitcoin and other cryptocurrencies as part of their sponsorship agreements and even their salaries, such as:
- Trevor Lawrence– Jacksonville Jaguars
- Russell Okung– Carolina Panthers
- Saquon Barkley- NY Giants
- Sean Culkin– Kansas City Chiefs
- David Barral-DUX International of Madrid
Smart Contracts
Another term doing the rounds is smart contracts. These are nothing but a set of codes that execute out a two-party contract in pure cryptocurrency.
The idea behind smart contracts is that you don’t need an intermediary financial and legal team to create a binding two-party contract. This means more money for the players as well as a cost-saving for the clubs when using crypto.
Mode of Payment For Teams
Recently, even the leagues and clubs have started getting in on the action. Acceptance of Bitcoin as payments and sponsorship fees is increasing. Teams such as:
- Sacramento Kings
- Oakland Athletics
- Dallas Mavericks
Are now accepting payments in the form of crypto and even accepting Bitcoin for merchandise payments and tickets.
