After a successful launch in September, Wyoming was the first state to provide regulated sports betting markets to residents within its borders.
Although Wyoming is the least populous in the nation, it is still attracting the attention of book operators thanks to its willingness to allow blockchain technology to be used for sports betting transactions.
On May 14, 2018, the United Supreme Court repealed the federal ban on betting on sports. The Professional and Amateur Sports Protection Act was (PASPA) struck down. Three years later, sports betting has been legalized in at least 26 states and Washington D.C.
Although most states allow sports betting, each state has sought to create a unique framework to provide a market for its customers while maximizing the tax revenue.
It took a surprising three-year period for a state legislation to allow cryptocurrency use.
Wyoming's sports betting law allows players with cryptocurrency and digital currencies to deposit funds into their accounts. Bitcoin is the most widely used. Wyoming House Bill 133 states that Wyoming sports betting shops can accept digital, crypto, and virtual currencies as long as they are convertible into cash.
In an effort to attract crypto-related businesses to the state, some crypto-friendly bills were approved by state legislators. The crypto conversations are so common in Wyoming's Senate chambers, Senator Jeff Wasserburger claims that there was "very little discussion" about including crypto-friendly language into the state's sports betting legislation.
Although it might seem not revolutionary for players to be able to deposit crypto, Wyoming has given operators the green light and allowed them to experiment with the technology. Improved funding and withdrawal options could lead to a completely new experience for all bettors.
The Future of Sports Betting Industry
Sports betting is a multibillion-dollar industry. Forbes estimates that the United States could earn more than $20 billion annually if each state passes legislation.
GammaStack CEO GauravSoni believes in crypto and blockchain-based online casino software and sports betting software.
"There is a huge demand for crypto- and blockchain-based gambling and software solutions all over the world. The same question is asked by 35% of our customers."
Many believe that blockchain technology will revolutionize financial transactions. This is why many people think that sports betting software could greatly benefit from its incorporation into the industry. Sportsbooks can reduce operating costs by offering faster and more secure ways to transfer money.
Book operators can operate at lower operational costs, which allows them to generate more taxable revenue. These savings can also be passed on to the customer in the form more competitive wagering lines.
Sportsbooks are basically betting exchanges. The odds of a certain outcome change based on how much money or interest is coming in. Many American operators have already partnered up with many companies to provide support for everything, including data acquisition, wagering software and geo-fencing. It's not difficult to imagine a day when sportsbooks will partner with crypto exchanges to create platforms that allow players to trade digital currencies and wager against other players using their holdings.
Hypothetically, customers could have a variety of coins in their sportsbook wallets and still be able to play the crypto markets. They also would be able to place wagers with the coin of their choice quickly without leaving the platform.
DraftKings made headlines recently when they opened an NFT exchange with Autograph. Players can participate in specialized drops and buy and sell NFTs that are related to sports. They also have the option to take part in free-to play competitions for digital property.
DraftKings is using blockchain technology to create an exclusive environment for their subscribers and give their marketing team direct access with potential bettors.
As more sportsbooks invest in exploring blockchain technology and potential applications in the betting industry, the laws will change. Although crypto is only allowed to be used in player deposits in Wyoming, the legal framework in Wyoming has opened up the market for all.
It had to begin somewhere. Wyoming is a good place to start.