Internet sportsbooks have traditionally run the online betting industry. They set odds, collect wagers from gamblers, and pay winners.
Online bookmakers continue to dominate the betting world. Given the industry’s success, the status quo should continue into the foreseeable future.
However, decentralized betting brings a new challenger into the ring. It presents sports gambling in a new light that doesn’t involve traditional bookmakers. Instead, bettors essentially control the industry.
This new betting industry model sounds great in theory. After all, what gambler wouldn’t mind cutting out the bookmakers and their high vig!?
However, there are both pros and cons to consider with decentralized betting. The following guide discusses both sides of the matter.
What Is Decentralized Betting?
Decentralized betting features open-source code and operates on blockchain technology. The open-source code allows any developer to work on and improve the platform.
Blockchain is key to the decentralized aspect. It allows a sports gambling platform to run without the need for central operators (e.g. sportsbook management).
Three types of decentralized betting platforms exist:
- Those that offer sports and esports betting
- Platforms that are specifically made for developers to build on
- Those that feature prediction markets, where gamblers can bet on virtually anything (e.g. Oscars, the weather)
All of these types of platforms have one thing in common: they offer betting without the need for a third party.
Gamblers create their own markets, much like a betting exchange. Other gamblers can then place