Fueling the Multibillion-Dollar Sports Betting Industry With Web3 Innovation
Web3 Infusion in a Growing Industry
CryptoJeter is your passage to discovering insights within transformative startups and essential topics in the crypto industry.
Blockchain technology will disrupt life’s normalities like finance, social media, and art. If you are curious about how crypto will impact your world, be sure to subscribe.
Feel free to reach out:
Twitter: @cryptojeter Email: Jeter@cryptojeter.com
Wallet (Donations Appreciated): CryptoJeter.eth
Topics Covered
Growth of the Sports Betting Industry
Incumbent Interest in Web3 Technologies
Web3 Native Betting Platforms
Brief Thoughts on Next Steps
Quick Notes🏃♂️
In the Web2 space, DraftKings and FanDuel dominate sports betting.
The global sports betting industry was worth 235.46 billion dollars
But only until recently has the U.S. legalized gambling federally.
Thus, there is a ton of opportunity for the global market to increase.
The future of sports betting is likely to be shaped by the utility of NFTs and DeFi platforms.
Full Analysis📝
Web3 and Vegas Drive Growth in Booming Sports Betting Industry
There aren’t many activities that are as popular as sports betting.
The sports betting industry is only growing.
In 2022, the industry was reported to be valued at 235.46 billion dollars worldwide.
Last month alone, sports betting in New York generated over 200 million dollars in revenue.
As with most industries, Web3 and blockchain technologies are disrupting sports betting.
Stake, the platform endorsed by Drake, is a crypto-friendly platform.
Another signal that sports betting is becoming more popularized is the league’s presence in Las Vegas.
This year, the Super Bowl was hosted in the city.
The host site comes after the Las Vegas Raiders moved from Oakland 4 years ago.
Additionally, the NBA has expressed interest in a potential expansion team in Vegas as well.
Thus, the epicenter of gambling is becoming even more ingrained into sports culture.
This comes at a time when crypto is merging with sports.
The Lakers recently changed their stadium name to the Crypto.com Arena.
Sports betting is at the intersection of the crossover of these two phenomena.
DraftKings and FanDuel Lead as Web3 Shakes Up Sports Betting
The two top sports betting platforms in Web2 are DraftKings and FanDuel.
For context, FanDuel generated over 3 billion dollars in revenue in 2022.
DraftKings was 2.24 billion in the same year.
Now these big players have to compete with the aforementioned Stake, and other platforms that are crypto-friendly.
The Web3 crypto industry is very nascent
But is paid attention to by larger incumbents
Thus, we’ve seen companies like DraftKings embrace Web3 technologies.
DraftKings leaped to explore Web3 technologies to provide to their users.
The sports betting platform created NFTs and a community called the Reignmakers.
By being a Reignmaker, DraftKing’s users get ownership of athlete collectibles.
These collectibles provide users with unique fantasy games where they can win prizes.
FanDuel isn’t as invested in Web3 but has served as a training ground for new Web3 founders.
Thus, it seems like DraftKings will be competing with more Web3 native companies rather than incumbents.
While it is technologically forward for DraftKings to be involved in Web3,
Draftkings is a centralized entity.
Draftkings, casinos, and other gambling onramps control the odds.
Additionally, they are more likely to be affected by fraud and manipulation.
Centralized gambling also does its payouts slower than a decentralized platform.
Lastly, centralized sports betting platforms can limit the winnings of top betters.
Innovating in the sports betting industry has gaps that DeFi platforms can solve.
CryptoJeter Readers Say….
“CryptoJeter allows me to stay up to date on everything crypto and web3. I use it like a cheat sheet for work!” - Errol, Banker
Errol is like YOU and ME.
He wants to understand how crypto will be relevant to the financial markets, his daily life, and his financial future.
Are you willing to miss out on game-changing insights about the infusion of Web3 in sports betting?
Click “Subscribe Now” to consistently view premium content weekly.
NFTs and DeFi Experiences Could Revolutionize Sports Betting
The future of NFTs has always been within the utility that they offer.
DraftKing’s NFT experiences take a long-term approach to Web3.
Thus, DraftKing’s Reignmaker experiences aim to bring users closer to the action.
As mentioned earlier, Web3 native products will be more prevalent in the sports betting industry.
Former Fanduel executives left the Web2 giant to form a company called BetDEX.
BetDEX has since evolved to become the first decentralized sports betting platform on the Monaco Protocol.
The Monaco Protocol also powers Purebet, a chain-agnostic sports betting aggregator
Since being founded, the Monaco Protocol has matched over 8 million dollars in bets.
Another popular platform in Web3 is SX Bet which is one of the largest betting sites in the world.
After the company launched, in 2022 the platform generated $180 million in volume.
SX is hoping to disrupt the sports gambling industry by slashing costs by 90 percent.
While there is innovation occurring in this space, US users aren’t able to access these platforms.
However, some DeFi sports betting platforms haven’t left US consumers.
Bundles Bets is the first licensed Web3 sports betting and prediction platform.
The US sports betting industry is new with the activity becoming legal nationwide.
But the two players that make up the largest market haven’t had to face as much competition.
Thus, Bundles Bets and other web3 sports betting platforms have disruptive potential in the industry.
Web3 Reshapes Sports Betting from Incumbents to Disruptors
Ultimately, Web3 sports betting brands can not only be relevant in the near term
But can also be disruptive in the long term.
This signal is validated by incumbents exploring Web3 technologies today.
With the crypto industry trending positively, it would be interesting to see how they take advantage of the market.
If incumbents want to go full degen, it would be interesting for them to create tokens.
These centralized companies could not only offer incentives for betting the tokens
But also drive rewards for using their native tokens.
Thus, they would be able to catalyze the market to transact in their native token.
Conversely, Web3 platforms have to improve their user experiences.
Many people like to sports bet on mobile,
But, many mobile experiences in Web3 tend to be desktop-focused.
These components can be implemented to incentivize users to use Web3 platforms.
Ultimately, this industry could not only be a central narrative in this current market
But also be a space that drives adoption in the nascent crypto industry.