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BCH Business Idea - Sportsbook

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Avatar for mattaaron
Written by   44
1 year ago

Hey BCH fam, an idea is only 1%, the rest is in building.

Thought I'd share a rough idea I played around with hoping someone may be interested in building this. Feel free to critique, add, ridicule, but hopefully it stimulates some ideas.

No Account Online Sportsbook

Thesis: No Account Online Sportsbook offers a superior gambling experience to the competition.

The principle unique value proposition (UVP) is, scripting with Bitcoin Cash, the need to have an account; to deposit, to login, to withdraw, to wait etc .. all of those friction-inducing steps are ELIMINATED.

All bets are on-chain transactions settled by a centralized oracle upon completion of the bet. This makes for a faster, easier, more pleasant gaming experience.

The convenience of making a bet directly from your own bitcoin cash wallet cannot be understated.

Not having to log in after the game to make a “withdrawal request”.

Additional UVP's:

  1. There is less dependency on the sportsbook to send you your money. It's less risky to use a ShapeShift or SideShift type service than a fully centralized exchange. No need to store money in a sportsbook.

  2. The cost of BCH transactions (right now around .002) allows for LOWER minimum bets compared to other competing sportsbooks. You could bet as low as potentially 2USD.

  3. By eliminating accounts, deposits/withdrawals, customer service / operational costs will be lowered, possibly allowing the ability to offer better odds

Industry brief

“The sports betting market occupies the largest market share in the overall gambling market accounting for around 40% of the gambling revenue generation across the globe. Some of the most popular games that involve high betting are horse racing, football, cricket, grey hounding, basketball, baseball, and golf. The primary reason for the growth of the sports betting market is the ease of government regulations on gambling.

The world has opened the opportunities for gamblers to participate in sports betting in any part of the world through an online platform, except in those countries where sports betting is banned.”

Note: Industry Research Companies Statista and Technavio have paid reports, but at this point, we know that

A) Sportsbetting is growing year over year

B) Online is growing much faster than offline.

Having established that online sports gambling is a large, growing industry, why would we enter? Because of a superior, easier gaming experience. Bitcoin Cash is in the background.

Non-crypto gamblers will be willing to acquire/use BCH in order to play. This is important.

Assumptions

For this business to be a success, EVERY item below must be true/yes

1. The 2-3 UVPs are compelling enough to bring in new gamblers and sway gamblers from existing sportsbooks.

2. The BCH blind escrow system works. a. Bets can be accurately recorded b. Payouts via centralized oracle (API?) are accurately awarded

3. Onboarding - enough users are willing to acquire BCH in order to gamble.

4. Financial risk management

a. Managing the risk of a sportsbook

b. Managing the risk of Bitcoin Cash volatility

c. Storing BCH in a hot wallet, it can be hacked.

5. Marketing: in an industry that is banned from many types of advertising, the sportsbook must be viral enough to grow via affiliate, word of mouth, and advertising.

6. Accurate target markets. The western world, and Asia, where do we enter and what languages will the service be offered in?

7. Regulation - Maybe this should be #1 - a. Can we get a gaming license? b. Do we have the expertise to understand which markets, countries we can safely operate in?

Conclusion: If the above 7 assumptions are fulfilled, there is a chance to build a lean, profitable sportsbook powered by bitcoin cash.

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+ 1
Avatar for mattaaron
Written by   44
1 year ago
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Comments

I've also thought it would be fun to hold a fantasy football league next year with a BCH buy in. Not as a business idea but just something to do for fun. You would of course have to trust the organizer, unless you build an entire site that allows it to be done trustlessly.

$ 0.00
1 year ago

While the idea itself is interesting, it's hard to understand how much is possible to do without a custodian. BCH doesn't have a full scripting language, it's quite limited in many ways.

$ 0.00
1 year ago

I had spoken to devs who thought it was possible fwiw, but you may very well be right. I think of it like Satoshi Dice, but tied to a centralized oracle that releases winning payment if the result is positive.

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1 year ago