Decentralized Gambling Platforms Are Already Worth Over $200 Million

Decentralized gambling represents a massive market.

The Ethereum blockchain is the second most valuable cryptocurrency project in the world by market capitalization for a reason. It allows developers to build decentralized applications easily and also raise funds that go towards completing the project they are working on. Many of those projects are related to gambling as gambling has proven time and time again to be one of the top use cases for cryptocurrencies and blockchains.

Gambling projects are getting so popular in fact that a report from one website suggests decentralized gambling platforms are now worth over $200 million. The fact that more and more liquidity is pouring into gambling related projects is definitely a win for gamblers. Competition is always good for the consumer after all. Let’s delve deeper into why and how that is.

One Bitcoin Sportsbook Is No Longer Taking Juice on Some Events

CloudBet.com as one of the most popular Bitcoin gambling sites on the planet. While the platform does feature many different entertaining live table games that gamblers can play, CloudBet.com is known for its sportsbook.

The site is announcing that during tennis’ U.S. Open, currently taking place in Flushing Meadows, New York with no fans in the stands thanks to the coronavirus pandemic, gamblers will not have to pay any juice to the website.

Why Gambling Sites are Sacrificing the House Edge

Not only are more and more gamblers turning to Bitcoin to make their wagers (which is one reason to give people a break), more and more of them are turning to decentralized platforms that don’t actually take a house edge. This is good for gamblers because they get a better price on their wagers, but it does make it harder for traditional gambling operators that run a centralized, for-profit business to actually make money and turn new customers into long time, loyal gamblers.

Traditional Gambling Operators Benefit from Blockchain Too

One of the key reasons CloudBet and other operators can afford to do this is because they are no longer paying fees to third-party payment processors like MasterCard or Visa. They rely on cryptocurrencies and the blockchains they live on in order to verify funds and facilitate transactions. They are essentially passing down that cost saving to gamblers.

Will This Be Enough to Challenge Traditional Gambling Operators?

Traditional gambling operators like Bodog and 5Dimes already have huge brand names and large customer bases with deep wallets who like to place bets on table games and sports events. Gambling operators who market themselves more towards the crypto audience as opposed to the broader gambling audience don’t have the same marketing budgets. So while it makes sense for them to reduce the amount of juice they take on a wager in order to entice more people to interact with the blockchain as a consistent way of wagering, they simply may not be able to steal market share away from bigger names like Bodog in the long run.

The thing is to the average gambler, it shouldn’t matter who wins the race to acquire market share. The point is the more gambling operators are competing for your Bitcoin, Ethereum, Litecoin, other cryptos, or even your fiat money, the more likely you are to get access to better odds, better promotions and ultimately a larger bankroll over time.

At the present moment, even the most astute Bitcoin gamblers don’t necessarily know the difference between using a traditional operator, a crypto specific operator and a house-less casino that doesn’t have a centralized business behind it. As gamblers grow in that understanding, they will expect a greater advantage over the house, regardless of whether it’s being run by a human, the company or a smart contract.

Jack Choros byline

Jack Choros

Jack first invested in Bitcoin in 2016 and continues to gamble with it to this day. He loves the Toronto Raptors as much as he loves cryptocurrency. Jack’s work has appeared on ESPN Radio, Yahoo Sports, OddShark.com and many cryptocurrency related publications, namely BTCGG.com.

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