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Why Is Sports Betting Losing Its Popularity and Which Alternatives Are Available? - The Trent | Internet Newspaper
5th December, 20:08This article explains why sport betting is becoming less popular comparing to new coming and digitally advanced industries. Blockchain is taken as an example to show all privileges of a new technology that outstrips the giant betting services.
First of all, we need to explain this title a bit, because statistics show that the sports betting industry is actually growing. But when we pay attention to the details, we find an interesting situation: the reason for this growth is the online and innovative sports betting types.
We will discuss this in more detail below, but for now, let's state that e-sports betting and exchange bets are the main reason why the industry seems to be growing. In other words, the part of this industry that includes "classic" sports betting is not actually improving at all. In fact, it gets smaller and smaller. This also affects sports bettors as the number of old-school players is decreasing day by day.
So, what is the reason for this? More importantly, is there an alternative to classic sports betting? In order to answer the first question, we need to explain briefly how traditional sports betting works.
Sports betting is quite different from casino gambling, and, for example, the services offered in a casino website like Emu Casino. If you want to bet on a sporting event, you must first find a "bookmaker".
People or companies that accept bets, determine odds, and make payments are called bookmakers. The bookmaker accepts your money, gives you a ticket, and if you win, it will refund the money you paid and make an extra payment based on the pre-determined odds. This traditional system works exactly like this on online betting sites too. In other words, classic sports betting always needs a third party, which leads to many problems. For example:
In short, the classic sports betting industry needs a change badly, but the industry doesn't want to accept this. In spite of the digital revolution, we still bet like 50 years ago. And because of the unrivalled industry dominance of bookmakers, the necessary changes are not likely to be made.
This discourages casual bettors, while the number of old-school players is gradually decreasing. So, what's the solution? More precisely, is there a solution?
Actually, the solution we have been looking for has been in our lives for a long time. Blockchain technology, like many other things, has the potential to change the sports betting industry from start to finish. Moreover, it does this in a very simple way: by removing bookmakers, which are third parties in this equation, it makes sports betting much more simple for players.
We need to explain this a little. You can think of blockchain technology as an "autonomous database". All kinds of data can be stored on this database, and every transaction can be coded as a "smart contract". When the terms of this contract are met, the blockchain automatically executes the predefined orders. For example, it is possible to upload all the files of a sports betting site onto the blockchain. This provides the following advantages:
In this context, you can think of the blockchain as a kind of bookmaker that doesn't demand any share: players create their own bets and thus, it becomes possible to get a variety of odds. In order for the system to work, the person offering a bet has to store the entire payout on the blockchain in advance; otherwise, he cannot initiate the bet. After this stage, even that person has no access to the stored payout, and the rest of the transactions are carried out entirely by the blockchain.
These are not all futuristic dreams: Betting exchange sites work exactly the way explained above, and they represent the future of the sports betting industry. If blockchain technology sounds too complicated, you don't have to use it. Some of the traditional bookmakers offer the betting exchange service via their websites. But of course, this is not as advantageous as the ones that run on a blockchain, because you still have to pay a certain vig.
Simply put, this system, where players bet against each other, makes betting enjoyable, easy, and profitable again. But most importantly, it eliminates monopolisation in the industry: It is not possible to limit this system against certain individuals or control it completely. If you don't like the current odds, you can start a new betting pool by setting your own odds. The exchange system gives everyone the chance to create a fair sports bet.
The betting exchange system is available for all sports, but is most preferred for e-sports betting. We can say that almost all of the new generation sports bettors prefer exchange sites. They have no reason to use the classic bookmaker services because they realise that they will get much lower odds and can't find all of the e-sports events they want. Instead, they choose to create their own odds and accept/place bets for any event they want. They are aware that they can make more profit by disabling the middle-man, and that is why bookmakers are not involved in the future of sports betting. This industry is about to change from start to finish, and we look forward to seeing what the future will bring.