Bookmakers Betting Big on Blockchain

Bookmaking is a growing industry and an important contributor to the economy in many developed nations. Take an example of the United Kingdom, where bookmaking generated GBP 2.3 bln towards the national GDP. The betting landscape though is changing with the advent of new technology. More people are comfortable placing bets online using their portable devices and expect the convenience that they have become accustomed to in other sectors to be extended to betting as well. The availability of 24 hours, 365 days a year betting has changed the consumer mindset.

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The consumer also expects the online betting industry to be more reliable as things go online, Management Today UK reports, “Currently, online represents a third of the market, but it’s where all the growth is. By way of illustration, consider William Hill’s latest figures: It closed 104 stores in 2014, and Q3 revenues reported a four percent rise, built from a six percent rise in online and a one percent decrease in store revenues.” If this trend of growth in online betting is to continue, trust in the system would be a crucial factor.

Building a Blockchain-based betting system

At the moment no bookmaker utilizes the Blockchain’s ability to deliver verifiable and transparent services. Although Blockchain technology is being increasingly used in other areas such as financial services and information technology, the betting companies have not taken advantage of it. A Blockchain-based betting system could use smart contracts to deliver reliability and ensure that both the players and the bookmaker fulfill their obligations. An Ethereum based Blockchain betting system could thus ensure that the conditions for payout are pre-determined. Such a system owing to smart contracts could also ensure that there are no account lockouts caused by frequent wins or arbitrages. Registration and identification can be made simpler and security of funds ensured.

Minimizing risk in online betting

In order to bring the same amount of reliability in online betting as it exists in brick and mortar variant, it is necessary that every aspect of bookmaking is made secure against the risks of embezzlement and fraud. Limiting access to funds through smart contracts can enable that to a great extent. This ensures that the capital of the best is always secure. Players would be secure against a number of threats like substitution of results, account thefts and non-payment of winnings due to this. As online bookmakers have lower costs and the technology is already in place, a Blockchain based bookmaker has the potential of offering cheaper and more cost-effective services as well.

First ever crypto betting platform

XWIN is building a crypto betting platform, the worlds first and is a pioneer in this space. Using the Ethereum Blockchain, they will attempt to reap all the benefits that this technology can offer in the betting environment. Customer privacy and confidentiality would also be greatly enhanced by implementing a Blockchain based solution that they are devising. In this regard, the project has issued a white paper that outlines their vision, “The unprecedented development of Blockchain technology and the introduction of smart contracts has led to new opportunities in the field of betting on sporting and other events. At present, for the majority of private players, it is important to have comfortable, convenient and, most importantly, safe and guaranteed access to betting on the outcome of any event, and for investors – to receive guaranteed income from the bookmaker’s activity. XWIN was created in order to solve these tasks.”

Creating a new betting economy

Bookmakers in the crypto betting environment need a new economic model. This will allow players to utilize the power of the Blockchain for sports betting and other forms of gambling. The XWIN token was designed to be the lynchpin of this model. The token will allow investors to become co-owners in the pioneering XWIN crypto bookmaker. Investors would receive a 100 percent of the net income generated as a reward. XWIN tokens are available at a pre-ICO sale with a bonus of 40 percent on offer. Investors can participate in the ICO, which is set to begin on Jan. 1, 2018. There are plans to issue a limited number of tokens out of which 80 percent have been set aside for sale to investors. Excess tokens would be withdrawn depending on the number sold. Investors can find more details about the token sale on the XWIN website and also register for the ICO there.

An opportunity awaits

Betting industry is profitable, with a margin range of 6-20 percent. According to XWIN, investors can gain 20 percent of these margins. The fact that XWIN is the first on the scene would also help their case as they can single-handedly garner the market if not create it. Development is high on their agenda with 32 percent of the funds raised during the ICO marked for it, they would be spending 35 percent on Public Relations and marketing so that the platform gets the exposure among players. A referral program and sponsorship contracts etc are also being envisaged. In order to increase exposure, XWIN will develop a cross-platform interface that can be used on Android, Apple devices and through a browser. The code for XWIN smart contracts is being made available publically through GitHub.