Cryptocurrency and the US Legal Sports Betting Scene

There is no denying the popularity of cryptocurrencies in the current global economy. Bitcoin continues it exponential growth and is now trading at over $25,000 USD, up over 200% in 2020 alone. It has permeated almost every aspect of our consumer-based world and has been a part of the offshore gambling scene for years.

One area that Bitcoin and its cousins haven't been able to infiltrate is the US legal sports betting scene. Chances remain that the regulatory bodies in the US will never allow for cryptocurrencies to become part of the betting platforms they oversee.

Bitcoin has experienced an almost unfathomable rise since its inception. It has become the preferred way of doing business for many across the globe. The reasons for its popularity however may just be its downfall when it comes to integration within the US legal sports betting world.

Despite the potential for opening up and expanding new revenue streams that exists with Bitcoin, the monetary fluctuations that characterizes cryptocurrency and the lack of transparency that makes Bitcoin so popular will likely keep it out of the highly regulated American sportsbooks for the time-being at least. Bitcoin isn't seen as a simple, reliable and straightforward way to do business for US sportsbooks.

High-Risk, High-Reward

Investment in the Bitcoin world has become its own form of gambling. While not exactly "common” just yet in the US, many international sports betting sites and their younger clientele have embraced Bitcoin as their currency of choice. It's like playing the stock market with your savings each and every day.

While riding high right now, it was just two years ago, in 2018 that Bitcoin crashed and became virtually worthless for a period of time. Bitcoin did bounce back in a huge way but it is those fluctuations that make it a high-risk, high-reward investment. Like the stock market, nobody is exactly sure where cryptocurrency will end up at the end of each trading day.

Simply put, $1 in the cryptocurrency world doesn't always mean $1, making it hard for US sportsbooks, which rely on futures bets to accept and pay out on bets made with cryptocurrency as it exists now.

Benefits for the Bitcoin Bettor

Bitcoin serves the bettor better - period. It allows customers to see quicker turnaround on deposits and withdrawals and allows these transactions to be made without any fees that are common with credit cards and other forms of deposit methods.

Bettors that use traditional methods of deposit are behind before they place a bet because of the fees they are forced to pay. With Bitcoin, there are no fees attached. Bitcoin also allows players to remain anonymous - to keep their information away from sportsbooks and regulators.

Offshore books have been providing those who use Bitcoin some unheard-of bonuses and promotions. Bitcoin is not only being accepted by these offshore books but it is being promoted with better deposit matching sportsbook bonuses that the ones seen by tradition means.

Why the "Traditional" Is Preferred

Traditional payment methods such as cash and credit cards continue to be the only ways to get your money into a US sportsbook. It is likely to remain that way because of the fact that $1 will mean $1 during the time of deposit and potential payout. Traditional deposit methods leave no "grey area" with regards to funds, unlike that of the fluctuating Bitcoin world.

Transparency, particularly with the government regulators in the individual US states that currently have legal sports betting, is also a reason the "traditional" is preferred by sportsbooks over a cryptocurrency model. Regulation means exactly what it sounds like it means - those in charge want control and they want to know a bit about the people that are using their services - like it or not.

At the End of the Day…

There will come a time that US sportsbooks will have to at least consider adopting a Bitcoin-style deposit method. After all, sportsbooks' wins and losses on the fluctuating currency will have the same effect on sportsbooks as it does the players depositing cryptocurrency into the betting accounts.

Companies like PayPal and Venmo, along with some of the biggest offshore gambling companies have adopted and have seen success with their newfound cryptocurrency focus. The US legal sports betting industry has been one characterized by evolution - the use of cryptocurrencies may be the next step on that path.