The global sports betting industry is a multibillion-dollar industry with an impressive upside potential ahead. Analysts at ResearchAndMarkets posit that the global sports betting market is set to grow at a CAGR of 8.62% from this year through 2022. The researchers point to the ongoing revolution in the global sports industry as one of the main drivers for the upside in sports betting.
Without much ado, the rapid proliferation of digital platforms pushing the consumption of sporting events and the growing internet penetration globally is making it easier for previously disconnected spectators to engage with sporting events. The increase in the engagement level for sporting events and the access that the Internet provides is in turn enabling interested punters to place bets from different parts of the world.
The rise in digital consumption of sporting events and the attendant increase in sports betting is however not without its own challenges. Below are some major challenges besetting the global sports betting industry.
Major challenges besetting the global sports betting
Too little information
Sports betting is one of the few wagering activities in which luck plays a little and practically negligible role. Your decisions ultimately determine if you’ll make money or lose money on any given bet. However, you can’t make decisions in a vacuum; your decisions will be guided by the quality of information at your disposal.
Unfortunately, the information chain in the sports betting industry is currently fragmented. Sportbooks are walled off and sportsbook don’t share data with one another; hence, you can only place bets using the available odds on your sportsbook even when there are better odds on other platforms.
Analysts’ predictions are often not reliable
Unless you are a sports aficionado, you’ll most likely make your sports betting decisions based on the recommendations of sports analysts and other experts. Even if you are football enthusiast, you can’t possibly be an expert on all the football leagues in the world not to talk of being versed in the state of other sports such as cricket or greyhound racing.
However, currently the sports betting industry is littered with many self-acclaimed experts who can dish out recommendations without skin in the game. More so, it is somewhat hard to track the performance of the predictions of these analysts to know if you can trust their recommendations.
Liquidity remains a major challenge
Another serious problem facing the sports betting industry is the fact that there are too much liquidity issues. Traditional sportsbooks and betting platforms require users to open an account and deposit money into their wallet before they can trade. The problem however is that the deposited money just sits in the wallet without earning and interest – which sorts of defeats the purpose of using your money to make more money.
More so, when you place bets and win, the traditional sportsbetting firms have frustrating bureaucratic process in place before the cashout is processed. Hence, there’s a significant time lag between when you win from on a bet and when get to cashout your betting wins.
Here’s how Blockchain will solve sports’s betting challenges
BlitzPredict, a blockchain startup is working on a solution that solves some of the aforementioned problems of the sports betting industry. BlitzPredict wants to use blockchain technology to build an aggregator that curate betting odds on sporting events from different platforms to provider bettors with the best odds in the market. Better odds will in turn increase the chances of placing winning bets, which ultimately helps users make more money.
The firm is also working on introducing smart betting by leveraging the inherent power of smart contracts on blockchain technology. Smart contracts are self-executing contracts that trigger predetermined actions once certain criteria are met. For instance, a smart contract can help you place a bet automatically once the odds increase or reduce to certain point or when a certain event happens such as when a team gets a penalty kick or a red card in a football game.
BlitzPredict also wants sports analysts and pundits to provide credible analysis that can help users make more informed betting decisions. For instance, the firm thinks it is fair to keep an immutable record of the predictions of analysts on blockchain so that it would be easy to review their previous predictions and the eventual outcome of such predictions. In turn, BlitzPredict will incentivize analysts and sports experts to contribute to community projects and share their prediction models.
Lastly, BlitzPredict wants to solve the liquidity problem ailing the sports betting industry with a proprietary BlitzPay Liquidity Reserve that facilitates speedy payments on correct predictions and winning bets. BlitzPredict will use its tokens (BPZ) to guarantee instant payouts; hence, users won’t have to endure agonizing delays in waiting for their payments.
Disclaimer: The content of this article was provided by the company, and does not represent the opinions of Finance Magnates. Finance Magnates does not endorse and is not liable for any content presented on this page.