Bitcoin for the Win
Opportunity and risk in Bitcoin sports betting
I chat to Jiten Melwani, CEO of BitGameLabs, about how to manage risk in Bitcoin sports betting and whether 2015 will see widespread Bitcoin adoption in the gaming industry. Hear the full interview on Youtube.
Q, Bitcoin has some great features that the gambling community can take advantage of such as fast, international payments, no fraud, no chargebacks, and access to new global markets. So what’s holding the community back?
A, If you are managing risk in a sports book you don’t have all of the tools to manage risk with a Bitcoin sports book that you would do if you worked in a FIAT sports book environment because you can’t cut a customers limits so you have to grade your customers aggressively and price your events very accurately.
The value of Bitcoin does change wildy […] so you have to be intelligent in the way that you manage your currency. In your internal sports bank roll you can retain some in FIAT and some in Bitcoin and have a fixed ratio and trade to that ratio every day so you are not taking on any undue risk due to currency movement.
Q, Could Coinapult Locks provide a solution to the issue of volatility?
A, That’s a really good way to protect yourself from the volatility of Bitcoin, however you still also need an approach to manage your risk in a sports book which is totally separate to the volatility of the price of Bitcoin.
Q, Where is the industry headed?
A, Gambling is a really heavily regulated environment and so for Bitcoin to be fully embraced by the gambling community there must be regulators who understand the benefits and the risks […] now Bitcoin has a lot of answers to this because the block chain as everyone will know is public so there’s many wonderful benefits, however, the gap is in education, we speak to regulators everyday in this continues journey to helping them understand and until that happens there’s not going to be widespread adoption.
Listen to the full interview here.
Freya Stevens is a Marketing Specialist for Coinapult, Universal Bitcoin Service providers.