BetDEX Labs Inc. announced today that the BetDEX Exchange is now licensed and regulated by the Isle of Man Gambling Supervision Commission (GSC), making it the first fully-licensed sports betting exchange on the blockchain.
The OGRA has granted BetDEX full authorization to provide online gaming and gambling, including online sports betting.
The exchange will accept bets from some South American, European, Asian, and African countries. BetDEX Labs is a Web3 company founded by former FanDuel executives Varun Sudhakar (CEO), Stuart Tonner (CTO), and Nigel Eccles (Chairman).
Co-Founder and CEO of BetDEX Varun Sudhakar stated, “today’s news is an exciting step forward for the BetDEX Exchange. With the licensing and regulatory approval, BetDEX now boasts the first fully-regulated sports betting platform in the web3 space, and we’re excited to welcome bettors from approved regions. We’re certain this is the start of growing our exchange and continuing the expansion of sports betting into the Web3 landscape.”
The Solana-based platform, utilizing a central liquidity pool, enables users to execute trades quickly and affordably.
Third-party developers can build new applications and innovations on top of the platform thanks to its open-source and permissionless protocol.
In November 2021, the exchange secured a $21 million seed funding round. This funding round was led by Paradigm and FTX.
The State of the Sports Betting Industry
BetDEX CEO Varun Sudhakar told Blockworks that the traditional sports betting industry, estimated to be worth $250 billion in 2021, is plagued by poor user experience and high fees ranging between 5% and 40%. He added that BetDEX’s fees would be no more than 1%.
The business also discovered withdrawal issues, such as delays in cashing out because of counterparty risk. These issues would be resolved by the platform’s services.
The BetDEX Exchange currently offers sports wagers on soccer, with other sports coming soon. As a bonus, the Samoyedcoin community on Solana plans to use the Monaco Protocol to create Samoyedcoin-themed prediction markets for crypto-related events and markets.
Crypto-Backed Sports Betting Regulation in the US
As cryptocurrencies gain popularity, proponents of using them for sports wagering assert that the change will be crucial for drawing bettors away from the offshore market.
Colorado will be the first state in the US to accept cryptocurrency tax payments after Polis signed the Digital Token Act earlier this year. This cryptocurrency project may eventually grow to a point where the state will accept virtual currencies as payment for hunting and driver’s licenses.
Wyoming state laws explicitly permit funding sports betting accounts with cryptocurrencies.
While Barstool accepts cryptocurrency deposits in Colorado and Virginia, regulators in those states only approved the transfers if a sportsbook partnered with a third-party processor.
New Jersey, which is also a big betting state, wants to take its time before approving any crypto-related gambling measures.
The Future of Crypto Sports Betting
Sports betting is difficult to comprehend in its current state. However, blockchain technology has the potential to change that. This could be achieved by revealing the origin of users’ funds, which would give them a clearer picture of how their wagers are being used.
Tokens can be transferred between devices using blockchain technology. Sports betting events can now take place from any location with an internet connection (and some cryptocurrency). This change would make betting easier for those outside of major cities.
According to BetDEX’s CTO, “Sports betting is going to be revolutionized by blockchain technology, and we are firmly ahead of the curve. We already have a great team in place that continues to rapidly grow and have a series of exciting product milestones on the horizon before the end of the year.”
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