Ethereum’s Possible Blockchain Sports Betting

In 2018, the Supreme Court of the United States repealed the Professional and Amateur Sports Protection Act (PASPA) that blocked 46 states from passing laws to allow domestic sports betting. The repeal ended a 26-year ban that prevented US domestic sports betting to all but 4 states; Nevada, Oregon, Delaware, and Montana. Even before the federal ban was lifted, many states started drafting and passing laws to allow domestic sports betting in their state in preparation for the Supreme Court decision. In May, the decision finally came to the public when the SCOTUS decided that the PASPA ban was unconstitutional and violated states rights. Since the SCOTUS lifted the PASPA ban, professional and college sporting enterprises have been rallying for federal regulation of sports betting in the United States.

League Demands

NBA commissioner Adam Silver said that expanded legalized sports betting is inevitable. The NBA, NHL, NCAA, and MLB are all currently supporting federal regulation in hopes that they can obtain an integrity fee of 1% from the industry. A 1% integrity fee is being requested by the said leagues so that they can assure the integrity of their game. Many states object to the integrity fee, saying that it is too much money and not feasible. As a result, many states have started drafting their sports betting laws without the inclusion of an integrity fee.

The NFL has taken a different approach, they want federal regulation but are not asking for integrity fees. The NFL seems to be focused on licensing fees associated with using their brand name, teams, video, photos, and other media that could be associated with the industry. Federally regulated sports betting might seem like a far stretch considering that other wagering industries are not federally regulated. Being that the NFL is one of the USA’s most beloved sporting franchises, they have a good chance of having their case heard by the federal government.

Ethereum & Sports Betting

It’s kind of strange how sports betting and Ethereum’s blockchain are striving right next to each other in today’s market, and now many experts have already started putting the two together to provide strength and trust into the new American sports betting market. The blockchain is a public ledger that holds smart contracts. Smart contracts digitally facilitate a performance or agreement and allow credible transactions without a 3rd party. Smart contracts provide consumer and business security without the transaction costs often associated with traditional contracts. Smart contracts could change the way we are accustomed to sports betting. Not only does it leave a digital footprint, but it can also provide comfort for the bettor by knowing that their bet is backed by a smart contract.

Blockchain Security

Some experts are saying that the blockchain could be the industry’s missing piece, claiming that the technology provides accuracy, transparency, and security to transactions. With blockchain technology, there is no altering or changing the contracts, so once a bet is made on the blockchain it is there for everyone to see. The blockchain is sometimes referred to as an ecosystem for cryptocurrency and the technology keeps detailed records of all crypto exchanges. The blockchain is regarded as one of the safest ways of conducting modern business. Since the smart contracts are listed in this public ledger there is no way to change the contract or remove it without consensus from the entire Ethereum community.

Crypto Sports Betting

Cryptocurrency was first introduced to the online sports betting industry when betting sites such as BetOnline started accepting the currency back in 2015. Being one of the first sportsbooks to accept crypto they won big when the Bitcoin boom took place in 2017-18. Now BetOnline and other online sportsbooks have started to accept more crypto options such as Litecoin, Ethereum, Dash, and more. While the latter is not as prevalent as the Bitcoin giant, there are some trusted sportsbooks that will accept these altcoins.

Crypto works well with online sportsbooks and casinos as a world currency. Bettors from all over the world can buy crypto with their own currency and use it to wager or buy things without converting their money. This ease of use is why many online companies and sportsbooks have started accepting Bitcoin, Ethereum, and other altcoins.

Future Sportsbooks

While it is still unclear what will eventually become of online and domestic sports betting one thing you can bet on is that digital currency and Ethereum’s blockchain and smart contracts will be used in future sportsbook applications. Technology drives commerce and innovations to this extent can’t be ignored by multi-billion-dollar industries. With new laws being enacted that allow sports betting across the United States, it is exciting to see how the industry will come into its new form. Legally licensed sportsbooks have been servicing the US and other countries for years and while there are some highly trusted online sportsbooks, there are also a lot of scams and crooked sites online. New technology could provide some assurance to the skeptical bettor and usher in a new era of secure sports betting.