The odds are stacked against you. That’s the first necessary observation about the current state of the betting industry. From beginning to end, the centralised bookmaker wins, even when you win.
Think about it. You deposit your hard-earned cash at the bookies. You hand over a fair chunk so that you don’t have to keep going through the hassle of depositing more money, and so that the funds are on hand for you to make your wagers.
It might not feel like it but that money is still yours, even though it is sitting in the bookmaker’s account. Nevertheless, it is no longer under your direct and full control. Instead, is tied up, sometimes for very long periods of time.
If the bookmaker was a bank, you would be getting paid interest – admittedly not very much in today’s low interest rate environment. However, you get no such earned income from a bookmaker.
Where’s my cash?
Or take another example of the un-level playing field of the betting world.
Maybe it’s happy days because you’ve just won big with your Sunday night prediction on the outcome of an NFL game.
Being a cautious type that knows the old trading dictum – never leave your winnings on the table too long for the broker to see – you decide to cash out.
Not so quick. Sure, you get graded instantly when depositing cash with the sportsbook to make it easy and quick for you to open that first bet, but it is the exact opposite when you decide to take your winnings off the table: there is no instant appearance of the funds in your bank account. Instead there can sometimes be delays of days before the funds turn up.
Even worse, if the sportsbook has failed to manage its affairs prudently and finds itself having to default on its liabilities, you have no way of getting your money back.
Fixing the problems without fixing the rules
Those three problems are indicative of a system that doesn’t work for the customers.
Another more controversial problem that is harder to quantify might also be added, which is the habit sportsbooks have of finding underhand ways to removing those customers who have the temerity to win too much.
All of this taken together speaks to the lack of transparency in predictions markets and the risk of liquidity issues arising, seemingly from nowhere. That last point can even an issue where blockchain markets such as Gnosis and Augur are concerned, when cashing out can sometimes take weeks, especially where contract disputes are involved.
Discovering the best price shouldn’t be so hard
And let’s not get started on the pain of having to navigate the fragmented lines landscape from the aspect of price discovery, as you attempt to secure the best odds by opening accounts at countless sportsbooks – assuming you are able to make sense of the incomplete analytics divided between syndicates, sportsbooks and sports team.
Also, who knows what relationship the expert touts have with others in the business and the veracity of their track records? Who holds them accountable?
There is a solution to this mess and it lies with blockchain technology.
Betting on a blockchain
Certainly, aggregating sportsbooks and prediction markets does not demand a blockchain as the only possible solution, but to match users with the best lines in a real-time environment of constantly refreshed odds, it does require a robust record-keeping system that, ideally, can look after itself, which is exactly what a blockchain ledger does.
Add to that the ability to use smart contracts to execute wagers under certain prescribed conditions, and blockchain technology can put the user in charge in a fashion akin to the systems of betting syndicates. Think of this new breed of smart contracts like it’s your very own trading api, but for betting.
BlitzPredict Aggregator is fair and liquid
This is what BlitzPredict is doing with its aggregator that guarantees you always get the best price available.
It also has a handle on the liquidity issue because, where legal, the BPZ token, implemented on the Bancor Protocol, can be used for wagers at partner sportsbooks and platforms, which automatically activates BlitzPay instant payments. And if you bet with fiat or other crypto you can activate BlitzPay after the event too.
In a nice twist, BlitzPay has an analytics incentivization scheme that rewards experts and the Ordinary Joe for taking part in the platform and for the accuracy of their picks, with the market learning all the time so that it gets better at discerning the good from the bad among predictors, helping the user to win more often.
Also, with transparency in mind, BlitzPredict’s reserves will be publicly audited by verifiable third parties, so there is no danger of being caught unawares by a looming funding crunch.
It might be worth your time to take a bet on BlitzPay’s smart betting platform by perhaps registering for their token sale, starting soon. There’s a total token supply of one billion of which 15% were sold in the pre-sale and a further 15% are available in the token sale.