The online gambling landscape is shifting dramatically. With more gamblers using decentralized betting to bypass banks and other third parties, platforms that use blockchain technology are disrupting the online gambling industry.
Below we will explore how online players can use decentralized betting for more anonymity, low vigs, and control. We will also cover how players can use this betting model to gamble without traditional bookmakers.
In exploring decentralized betting, these are open-source codes that use blockchain technology. Decentralized bets let casinos and sportsbooks run without hiring extra management to approve all the transactions.
If you are new to cryptocurrency investing, decentralized bets use cryptos (Monero, XRP, BTC) and do not require bank credit and debit cards, wires, or digital wallets. They include esports betting and traditional sports, platforms for developers, and those focusing on prediction markets (almost like parlays where you can bet on anything).
Gamblers can set up their betting exchange, accept bets, and let other gamblers place bets and create a new market if one does not exist. With no centralized authority, you can place bets and collect winnings without worrying about juice or vig coming out.
While this is still a new concept, it is growing in popularity, especially if you are looking for a decent sportsbook or the most trusted online casinos for real money like this.
Advantages of Decentralized Betting Platforms
Decentralized betting is a game-changer with online gambling and sports betting as it bypasses traditional bookmakers and thereby lets the gamblers control the bets.
1. No Centralized Authorities
Usually, when you place a bet at a casino or sports gambling business, a portion is deducted from their commission. However, decentralized betting bypasses that.
The advantage of using decentralized platforms is players can bypass a third party, which in most cases is a bank.
2. Deposits post with a 100% success rate
Gamblers have nightmare stories about placing perfectly legal bets that their bank rejected on a credit or debit card. Hence, decentralized betting is changing that.
Without restrictive laws from another country, there is never a cause for concern about rejections with a credit card payment because the bank doe not control the payment method.
3. Low Juice
Another advantage is there is low vigs or juice. On average, sportsbooks usually charge 5% and 10% for a losing bet. However, players sometimes want to give a bookie extra money as a commission.
With decentralized betting, the fees might only be 1% (or lower) and cover developer network costs.
4. Transparent Bets
Most bookmakers are reliable, but there are a few rogue operators, but as word gets around, gamblers know which sites and businesses are trustworthy and which will not honor a large win.
With decentralized betting, players can use blockchain technology to verify the bets placed so there is no doubt about someone in another state or country.
5. There are No Bans
Bookmakers sometimes ban a gambler who wins by arbitrage betting or steam moves. A ban might be confusing to a gambler who thinks the rejection is because the bookie does not want to lose profits. The good news is gamblers do not have to worry about third-party rejections with decentralized betting.
Because there is no bookie or one person making the decisions, players can use whatever strategy they want!
6. Unrestricted Countries
An additional incentive is there are no country restrictions. While some bookmakers are restricted based on territories and countries in and outside their jurisdiction, that is not the case with decentralized betting.
Decentralized Betting Drawbacks
While decentralized bets are not new, not everyone is familiar with them, and they have a few drawbacks.
1. Learning curves
While gambling and sports betting sites already have the odds, novices might not feel secure about decentralized wagering. Newbies need to help understanding how to buy cryptos and make deposits.
2. Platform hacking
Aside from the security threat, there is a learning curve here. Some sites are vulnerable to hacking, and you could lose your coins. Bypass this by using a wallet for your coins (for full ownership of your tokens).
3. Blockchain insecurities
Blockchains are still new and have a poor reputation, but most people know about Bitcoin. Concerned with numerous scams and crypto businesses closing, gamblers may have more hesitancy and apprehension about decentralized betting projects.
4. Liquidity problems
Casinos and sportsbooks use ads to entice gamblers. However, their money comes from ICOs or initial coin offerings where they can sell their tokens for a profit.
5. Purchasing tokens
A problem you will not see with casinos and sports betting sites is tokens. Decentralized bets use tokens and may not use Bitcoin, Litecoin, or another type of crypto. Hence, some players might run into exchange problems.
Is a decentralized bet like a parlay?
Yes! Gamblers can create their bets and odds, and then players can bet on them or create their own.
What is a vig or juice?
A vig or juice is the fee a third party (casino, sportsbook) would charge.
Is a decentralized bet safe?
Yes. Decentralized bets use distributed ledgers. They provide heightened security, are not tied to a bank, and are easily traceable and transparent.
Gamblers are exploring the benefits of decentralized ledgers, and they like what they see! Expect more decentralized betting between players and the markets they cover.
Gamblers are trying to keep their commissions lower than a bookie’s, so if you bet with another gambler, expect a small fee (sportsbooks charge 5%, 10% with losses), but for gamblers, it might be 1% for developer fees.
In exploring if decentralized betting take over traditional forms of betting, it might be too soon to tell. Decentralized bets remove the third-party middleman (bank) and offer more security, flexibility, and transparency, so they ARE promising, and there is no bank denial or extended payout delay.
Because decentralized betting offers more fairness, transparency, and security (without higher third-party vigs), gamblers need time to overcome the token learning curve and lack of liquidity.