Blockchain has infiltrated itself into many sectors and industries, including the world of sports betting. More and more platforms have started to recognize the potential cryptocurrencies have for the betting and gambling market and thus have implemented them as payment.
One such platform is 1xBit, a betting and gambling site which allows its thousands of users to place wagers on more than 1,000 different sporting events. 1xBit accepts over 20 cryptocurrencies as payment, including Bitcoin and Ethereum, in order to provide a fast and convenient gambling experience.
1xBit just added a UFC section on their website
The website has recently added a new section featuring one of the most popular combat sports promotion company in the world: Ultimate Fighting Championship (UFC). UFC is the largest company in the world that promotes mixed martial arts, featuring the highest-level fighters on the roster in worldwide events.
As of 2018, UFC has organized over 400 events. The betting potential for UFC matches is what prompted 1xBit to launch a section dedicated to this sport. There are hundreds of millions of fans that follow such events, and it is highly likely that a majority of them would be interested in placing wagers on their favorite fighter. The Nurmagomedov Vs. McGregor match attracted millions of bettors and sports fans, flooding sports bookmakers around the world.
Blockchain bookies vs. Traditional sports bookies
Sportsbooks perform an ample analysis of statistics, gather opinions from experts and implement probability calculations in order to predict the outcome of each event. Then they add their own profit margin to each probability. This generates the final odds on which they can make a profit even in the most unexpected outcome. The possible proceeds are then calculated by multiplying these odds with the users’ bets.
While gamblers do their best to make the most profitable bets, bookmakers, on the other hand, are more interested in seeing them loose, as this is how they make their income grow. This is why most betting companies influence the users’ actions by specifying certain odds and handicaps, promotions, staking level variation and limitation, and so on, to increase their chances of losing.
There is nothing to stop bookies from basing their betting rates on artificial expert forecasts and statistics. Bookies can also ban their users’ accounts and their bet earnings under the pretext of a security policy. After a user’s account passed the specified period of inactivity, the bookies can embezzle the money from that account.
Distributed ledger technology can help put an end to the issues of low security and lack of trust. A blockchain records all of its transactions and payments which can then be verified by any member of the network.
In addition to a transparent and fair environment, blockchain bookies require less personal data upon registration compared to traditional sports bookies. For instance, 1xBit generates a password when you click to log in and then send it to its user via email.
Regular bookmakers have to adhere to strict KYC and AML procedures required by regulation entities, while the DLT industry is not yet facing systematic regulation.
In addition to honesty and fairness, which are crucial issues for betting, distributed ledger bookies come with another advantage – liquidity, an important matter. Regular bookmakers apply withdrawal fees which force long-term gamblers to keep their funds in their accounts for a longer period of time.
Blockchain-based bookies accept cryptocurrencies, and this allows them to execute transactions at a higher speed as there is no financial third party involved. Also, DLT-bookmakers do not charge any commission fees for withdrawals and allow a limit of 120 BTC. In this way, bettors are allowed to withdraw all their earnings from the fight’s outcome at once, without sustaining any loses.
Blockchain projects entered the sports industry
Cryptocurrency projects have become more involved in advertising themselves in the sports industry by signing sponsorships deals with various athletes or sports events.
One example would be Litecoin’s partnership with GLORY Kickboxing, a world-leading kickboxing league. Their collaboration enabled GLORY’s official website to accept LTC as payment for their merchandise.
Litecoin also made an appearance in the UFC world as Ben Askren, the famous UFC fighter, shared how he used LTC to make a purchase; he encouraged the community to use the altcoin.
On 1xBit’s blog, there is another recent example of a crypto project that has entered the sports industry. Stratis (STRAT), a BaaS (Blockchain as a Service) platform that enables decentralized apps (dApps) creation and deployment on private blockchains, offered their sponsorship to experienced British boxer, James DeGale in his match for the IBO World Super-Middleweight title belt.
In the end, we can say that it is evident that crypto and blockchain will become more of an influence in the sports and sports wagering industry, and UFC betting sites will also benefit from such integration.
Disclosure: This is a Press Release