How people fund their Sportsbooks

[Questat]

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.

[Haunebu]

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.

[kaya11]

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?

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.

[sunsilk]

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.

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.

[michellee]

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.

[iMark]

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.

[squatz1]

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.