Many Bitcoin and blockchain-based betting platforms “guarantee” higher-than-average profits or win-rates. These platforms often boast of extreme jackpots, using individual cases of big winners as part of their marketing strategies. But how realistic are these bitcoin gambling promises?
This article is sponsored by the Vanbex Group.
Is Bitcoin Gambling All It’s Cracked Up to Be?
Theo Goodman, owner of Degenbet, a blog dedicated to cryptocurrency-based sports betting, told Bitsonline that these claims generally carry no weight in regards to actual profitability for players.
When considering these claims, Goodman said, potential customers should understand that “there is nothing that makes bitcoin or blockchain based gambling platforms more profitable than traditional platforms” in terms of guaranteed profits or higher-than-average winnings.
Instead, Goodman advised gamblers to look at the track records of cryptocurrency-based casinos and betting services. A history of paying out winnings and the employment of best-practice security measures are important things to look for in a casino, Goodman said.
A new sports betting platform, however, says it guarantees higher profitability over traditional services in a much more reliable way than other companies in the blockchain space.
Their method: simple mathematics.
FansUnite: Ethereum-Based Betting
FansUnite, a virtual sportsbook operated by a team with more than 50 years of industry experience, says it is developing a blockchain-based betting platform that will drastically improve returns for bettors. Their secret? Creating their own digital currency that will utilize smart contracts built on the Ethereum network to automatically resolve bets, lowering their cost of handling bets significantly. They feel that this, in combination with their ability to reduce the spending bloat that accompanies the operation of larger sportsbooks, will allow them to pass large savings on to consumers.
FansUnite is confident that their blockchain product will allow them to charge an industry-leading fee of 1 percent per bet upon launch, which they claim is up to 80 percent lower than traditional fiat sportsbooks.
Mathematically, these lower fees will increase the chances of users making money by lowering the winning threshold for profitability. At a traditional sportsbook with 10 percent fees, FansUnite said, bettors need to win 52.5 percent of their wagers to break even. On the FansUnite platform, that threshold drops to 50.5 percent due to lower fees.
Adding to that profitability is the opportunity to get monetary rewards for interacting with other users. The platform allows users share their betting picks and strategies with each other, and is incentivizing this positive behaviour on the platform by rewarding users with tokens based on their Community Incentive Plan:
The Future of Sports Betting
If blockchain-based betting platforms become mainstream, will “traditional” services that use fiat payments even stand a chance?
In FansUnite’s opinion, not without significant changes to their existing model. Not only does the use of a digital currency allow for unprecedented cost savings, but immutably storing bet information on the blockchain provides additional security and transparency over a centralized solution.
FansUnite CEO Darius Eghdami told Bitsonline that while they will be focusing on their new blockchain betting platform, they will still maintain their free-to-play virtual sportsbook. According to Eghdami, this service will still provide value to customers by allowing them to practice in a risk-free environment.
But what about the people who rely on traditional platforms, and don’t necessarily have a problem with them? Will they really be willing to switch to a new service based on an entirely new technology they will have to familiarize themselves with?
Eghdami doesn’t think it will be much of a problem, at least not for his customers.
“I believe that bettors are ready for some alternatives to the established betting options currently available,” Eghdami said.
“Any serious bettor has at least a couple of instances where bets have been reneged or voided post-event, or worse yet, been locked out or limited due to high winning volumes.”
The efficiency of smart contracts, he continued, should make that process much less painful for customers through their automated resolutions and trustless nature.
Eghdami said the new platform’s efficiency, combined with significantly lower fees, “should prove highly compelling for bettors to give us a try.”
The FansUnite development team has completed their official white paper, which is currently available at www.fansunite.io.
What do you think about the prospects of FansUnite? Share your thoughts in the comments below.
Images via Pixabay, Fansunite
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