Blockchain-based sports betting is one of the fastest-growing industries worldwide. According to bookie pay per head experts, online sports wagering will reach $180 billion by 2030. Thus, it is unsurprising that blockchain-based companies ventured into the industry.
Ireland, a country with a long history of sports gambling and a reputation as an industry leader, has just issued a license to FanDuel’s founder and former CEO for his new blockchain-based sports betting business.
According to pay per head sportsbook reports, legal sports betting in the US began in 2018. While the Unlawful Internet Gambling Enforcement Act of 2006 and the 1961 Federal Wire Act, popularly known as the Wire Act, have had minimal influence on online sports betting, they are still in place. While blockchain-based sports wagering is increasing worldwide, these acts might prevent it from entering the US market.
Sportsbooks that take cryptocurrency differ from those built on the blockchain. Customers that use cryptocurrencies to finance their accounts at a sportsbook can use assets like bitcoin and ether. When a customer deposits bitcoin, the operator instantly exchanges that amount into fiat cash. Due to tax concerns, this option is not viable in the United States.
All transactions can be made on the blockchain in a blockchain-based sportsbook. According to pay price per head experts, the customer’s bet is sent to the game’s smart contract and recorded on the appropriate blockchain (Ethereum in this case; “on-chain wager”). The smart contract collects the final game score and relevant data to distribute winnings after the game.
Future US on-chain sportsbooks cannot utilize the same justifications for offering online sports betting as the established US sports betting sector. According to the Wire Act, bookmakers cannot use cross-state communications networks to process bets on sporting events. If you are “in the business of betting or wagering” and utilize a wire communication facility “for the transmission in interstate or international commerce of bets or wagers,” you might face jail time and a hefty fine.