Legal implications would be highly dependent on where the corporation that owns the sportsbook is located. So that's an avenue that should be looked at when discussing something like this.
I would assume that having a token though would be classified as a security, which would remove certain customers from being able to use the site as a whole. Think of people in the US, who wouldn't be able to use security tokens due to the SEC not allowing this to happen.
Would probably be easier to run a casino with coins like BTC, ETH, and whatever as your bankroll reserves and such. There's no reason to make your own security for investment purposes for this sort of thing.
Topic: How people fund their Sportsbooks (Read 305 times)
I personally prefer privately funded sportsbooks that provide players the opportunity to invest in the bankroll. I'm not really a fan of sportsbooks or other casinos that are forced to raise funds by providing some sort of token, since they almost invariably fail to live up to the expectation of the investors. With that said, I'd like to see a sportsbook that offers investors improved odds and a few other features in exchange for part-funding.
Some sportbooks sites do use their own currency by making a token that can be bought and sold in the market and can be used to gamble on their site, it is a good marketing from their team. I don't really mind about that because I also gamble with lots of crypto, not just bitcoin, as long as it can be sell on the market that's fine. and I also like the sportsbook that has innovation as you said, like improved odds, and many other choice. 
I don't like to fund the tokens right now because I see that the project base on the sportsbooks cannot show the benefits of the token, and I think it will be the same as if we use the altcoin to bet. But if I have to choose, I think I will choose a private investment, but I don't want to use the token as the bet because I don't think that is a good idea to use the token for making a bet.
So far, I don't invest in the project again, and I am waiting for the rise of the projects which I don't know when it will happen. And for using the investment, I think I don' want to do it right now, and for me, it is better to invest in the coin mainly in bitcoin at the market than to use tokens as the investment. Just my two cents.
So far, I don't invest in the project again, and I am waiting for the rise of the projects which I don't know when it will happen. And for using the investment, I think I don' want to do it right now, and for me, it is better to invest in the coin mainly in bitcoin at the market than to use tokens as the investment. Just my two cents.
I have never seen a project launching their own token to be successful in the sportsbooks area.
It is always better to choose a private-funded project because they don't rely on what's gonna happen with their token or coin.
But you should research if they really have the funds to sustain their operations and the corresponding legalities on their area.
It's why I've also said that I rarely see them. Hang out on Gambling and check those projects that has been backed up by their investors through the token sale. Most of them aren't really sportsbook but there are few of them that has launched through sale.It is always better to choose a private-funded project because they don't rely on what's gonna happen with their token or coin.
But you should research if they really have the funds to sustain their operations and the corresponding legalities on their area.
Majority of the people here prefer those private funded casino's. I think everyone understands the risk beyond that kind of agreement for investors once they've start looking to those kinds of sportsbooks.
Hey guys.
Keen to get the thoughts of the community on the following and hopefully this may open an interesting discussion. I have many years of experience within the fiat gambling industry in terms of designing and managing sportsbooks but have little crypto experience. From what I can see there seems to be a split in terms of the type of operators in the market.
• Traditional sportsbooks (usually BTC focused) that are predominantly self-funded or with private investment and offer customers the chance to bet with a wide range of the major cryptos available
• Sportsbooks that launch their own ‘token’ which can be traded on an exchange, and used to raise initial funding for development/marketing/bankroll. I am guessing a lot of companies like to do this as their risk is limited and also gives a chance to get capital appreciation on the tokens also
Are there any legal implications for going down one route vs another (i.e. do Sportsbooks go down the token route because it enables them to trade in more jurisdictions given customers are betting with a ‘utility token’ versus a cryptocurrency coin?)
Which route do you prefer as an investor or customer?
Keen to get the thoughts of the community on the following and hopefully this may open an interesting discussion. I have many years of experience within the fiat gambling industry in terms of designing and managing sportsbooks but have little crypto experience. From what I can see there seems to be a split in terms of the type of operators in the market.
• Traditional sportsbooks (usually BTC focused) that are predominantly self-funded or with private investment and offer customers the chance to bet with a wide range of the major cryptos available
• Sportsbooks that launch their own ‘token’ which can be traded on an exchange, and used to raise initial funding for development/marketing/bankroll. I am guessing a lot of companies like to do this as their risk is limited and also gives a chance to get capital appreciation on the tokens also
Are there any legal implications for going down one route vs another (i.e. do Sportsbooks go down the token route because it enables them to trade in more jurisdictions given customers are betting with a ‘utility token’ versus a cryptocurrency coin?)
Which route do you prefer as an investor or customer?
You have a good idea on going down to utility token but the thing is most people came to a online casino to play direct and instant cash out payments and nothing like win and trade. They would be a trader if that's the case, and will some of their time and giving them another step to withdraw their winnings. Me of course see sports betting and do it as a source of fun and and extra income if had the luck, so I do prefer the traditional one as it is easy for me.
I don't know a single sportsbook that dabbles with tokens since I usually stick to BTC based sportsbooks basically. There are only a couple of legitimate BTC oriented sportsbooks which seems to be growing with time which is why I don't understand why anyone would thinking of dabbling with tokens in this regard. The good thing is that there are more and more established FIAT sportsbooks like Bookmaker, Bodog etc that accept BTC as a payment method these days.
I prefer traditional privately funded sportbooks and the reason is simple,they look more serious this way compared to some other sportbook who only accept tokens.If a sportbook offers both the traditional way of a real coin and token based betting should be the solution to each road anyone want to follow.
Same here, I enjoyed betting on sports book that accepts more stable coin like BTC rather than a token. To be honest, I don't find it attractive for tokens to be use in gambling especially if the token is not a stable coin, because its value will affect the decision of most gamblers, we have to remember that gamblers does not need to be an investor at the same time and majority of the gamblers would just prefer to increase their money by winning and would not care about the possible increase of value of the coin.
When I was still new in crypto, I learn gambling first, every time I deposit gamble and win, I made sure I will cash it out at the end of the day.
I prefer traditional privately funded sportbooks and the reason is simple,they look more serious this way compared to some other sportbook who only accept tokens.If a sportbook offers both the traditional way of a real coin and token based betting should be the solution to each road anyone want to follow.
As a gambler I prefer the traditional sportsbook they're used by a lot of gamblers and many have been providing their service for several years. Those ICO sportsbook that i've seen are offering similar services and sometimes less when compared to the traditional sportsbook i've used. I'll only switch to these new sportsbook if all traditional sportsbook starts offering KYC or if they have far better markets, odds and features than the current traditional bitcoin bookies.
Actually sportsbook are mostly funded by private individuals who has a capital.
Sports book as long as it gains clients will never loss, they always earn from commission and they just have to ensure that their operating expenses is way lower than their income, but since the crypto gambling industry is growing, I believe they can grow their business as long as they compete with the most popular ones.
There's no permanent position in the space, one that is currently below can grow, if a simple dice game could generate million of dollars, how much more a sports book where it was the most popular type of gambling in the world, and I think the biggest as well.
Sports book as long as it gains clients will never loss, they always earn from commission and they just have to ensure that their operating expenses is way lower than their income, but since the crypto gambling industry is growing, I believe they can grow their business as long as they compete with the most popular ones.
There's no permanent position in the space, one that is currently below can grow, if a simple dice game could generate million of dollars, how much more a sports book where it was the most popular type of gambling in the world, and I think the biggest as well.
There are many ways you could consider this because there are also two ways in how we will approach this, being an investor, or being a customer. As a person who wants to benefit from using money, whether or not I’m a customer or an investor, I would want a return of investment on my plan. That’s the goal of the long run. In a casino or a sportsbook Company, investors and customers have very opposite direction now.
For example, an investor wants to profit, and what does an investor invest in a casino? The bankroll. How would a bankroll increase? It’s by a player in that casino losses.
They have very conflicting goals, and I think that’s one of the critical factors that you need to consider whether you will invest or you could play and entertain yourself.
For example, an investor wants to profit, and what does an investor invest in a casino? The bankroll. How would a bankroll increase? It’s by a player in that casino losses.
They have very conflicting goals, and I think that’s one of the critical factors that you need to consider whether you will invest or you could play and entertain yourself.
I haven't seen good sportsbook that are using tokens, most of the popular sportsbook I used in crypto are privately funded, they accept BTC and altcoins and I think that is already enough for people to have a chance to gamble and trade regardless of what country they are betting from.
Tokens valuer relies heavily on the status of the sportsbook, if there's FUD it could loss its value, that's why people would rather prefer to use a stable coin which among the coins, BTC is obviously the most popular.
Tokens valuer relies heavily on the status of the sportsbook, if there's FUD it could loss its value, that's why people would rather prefer to use a stable coin which among the coins, BTC is obviously the most popular.
I'm kinda supporting the idea of a privately-funded sports book more than a bookie that relies their funds on their own issued tokens. It's not that the business model of the latter isn't good, it's just that I don't find it stable in the long run. It's more of a way of circumventing regulations in ICO or whatever coin offerings/token offerings are there in the form of a sports book, which IMO is kinda off. But yeah, if a sports book decides to open its doors for investors, that IMO is a good indication that they will stay and will accept public cooperation for the long term and would probably be around for quite some time.
If there are sportsbooks that has their own token, few of them just succeeded.
I have never seen a project launching their own token to be successful in the sportsbooks area. There many succesful sportsbook sites but most of them dont have their own coin . i only mostly see an exchange that has thier own coin like for example binance , binance has bnb and kuckoin , kuckoin has kcs .
adding those feature like that actually makes a site more attractable because we costumers think that we can value our money more if we can purchase those site owned coins instead of going for the actual cryptos ( e.g btc , eth )
If there are sportsbooks that has their own token, few of them just succeeded. I don't know all of those casino's that has their own token launched to fund themselves but I rarely see them take the main stage of crypto gambling.
I also prefer the private funding and this means more secured and won't depend to the fluctuation of their investors. Once the investors who bought those tokens and sold it at the same time, it will be tough for the operator. While in private funding, there's a certain agreement and mostly investors there are more focused in long term.
I also prefer the private funding and this means more secured and won't depend to the fluctuation of their investors. Once the investors who bought those tokens and sold it at the same time, it will be tough for the operator. While in private funding, there's a certain agreement and mostly investors there are more focused in long term.
I have never seen a project launching their own token to be successful in the sportsbooks area.
It is always better to choose a private-funded project because they don't rely on what's gonna happen with their token or coin.
But you should research if they really have the funds to sustain their operations and the corresponding legalities on their area.
If there are sportsbooks that has their own token, few of them just succeeded. I don't know all of those casino's that has their own token launched to fund themselves but I rarely see them take the main stage of crypto gambling.
I also prefer the private funding and this means more secured and won't depend to the fluctuation of their investors. Once the investors who bought those tokens and sold it at the same time, it will be tough for the operator. While in private funding, there's a certain agreement and mostly investors there are more focused in long term.
I also prefer the private funding and this means more secured and won't depend to the fluctuation of their investors. Once the investors who bought those tokens and sold it at the same time, it will be tough for the operator. While in private funding, there's a certain agreement and mostly investors there are more focused in long term.
I do wonder though if there is a way in which a sportsbook could gain private funding but also enable the platforms users to buy a part of the house bankroll for a certain time period with (expected) profits paid out in a major crypto as oppose to a 'token'. This in my eyes would be a great way to use a proven crypto currency to engage the users and get them to essentially help to market the product themselves. Maybe similar to what you were saying @DarkDays
Accountability is a big issue. The great majority of casinos are run by entirely anonymous teams, which while understandable, doesn't exactly breed trust.
By at least showing that the team has sufficient funding to pull off a barebones site, we can see that the project is likely to be successful. Because of this part-funding is a win-win for both owners and investors.
Some insightful points here by all. Trust seems to be the recurring factor, I guess the landscape and the sheer number of failed ICOs contributes to this and a lack of accountability on those that are raising the capital (they can take the money and essentially never be seen again)
Whilst volatility of any cryptocurrency is a factor, a new unproven token would be more of a risk too. So certainly going down the private route seems to be the most sensible choice.
I do wonder though if there is a way in which a sportsbook could gain private funding but also enable the platforms users to buy a part of the house bankroll for a certain time period with (expected) profits paid out in a major crypto as oppose to a 'token'. This in my eyes would be a great way to use a proven crypto currency to engage the users and get them to essentially help to market the product themselves. Maybe similar to what you were saying @DarkDays
Whilst volatility of any cryptocurrency is a factor, a new unproven token would be more of a risk too. So certainly going down the private route seems to be the most sensible choice.
I do wonder though if there is a way in which a sportsbook could gain private funding but also enable the platforms users to buy a part of the house bankroll for a certain time period with (expected) profits paid out in a major crypto as oppose to a 'token'. This in my eyes would be a great way to use a proven crypto currency to engage the users and get them to essentially help to market the product themselves. Maybe similar to what you were saying @DarkDays
There isn't much of sportsbook with their native token popular among the common cryptocurrency users. Majority of the users prefer to spend on privately funded ones with high trust. These days there is quite a low number of sportsbook available for the gamblers compared to the casinos with cryptocurrency acceptance.
Privately funded sportsbook all the way. I never ever had the interest for those who do offer tokens and just like what majority said here that tokens do lose up value and mostly die in the end.This is why we cant see sportsbook that having this set-up.Lots of them tried though but the outcome is still the same.
About legal matters i dont have much idea about it.
About legal matters i dont have much idea about it.
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