The Need for Decentralization in iGaming
For as long as I can remember, I have been fascinated by the world of iGaming, more commonly known as online betting.
Growing up in Toronto as a massive sports fan, I would study statistics for hours each day, watch every game possible, and just genuinely loved trying to figure out who was going to win.
I would literally watch the same 30-minute show of TSN’s SportsDesk (Canada’s answer to ESPN’s SportsCenter) from 7am until 10am, surely driving my mother crazy each morning.
As I hit my teens, I found out about the world of gambling. Discovering a world where you could make money by simply picking the winner in an NFL or baseball or Saturday morning Premier League game. But much more. Betting on the total points, the winner in the first half, and hundreds of other options.
As soon as I turned 18 in 2005, I found myself finally able to make the jump into the world of online betting! So many options to choose from. So many different sportsbooks. So many unique offerings.
It was a different world back then.
Back in the early-to-mid 2000s, the online gambling scene was a wild west of sorts. Online sportsbooks and casinos were popping up from anywhere in the world, with very little regulation.
Of course traditional countries like the UK and Australia, where gambling in general were culturally acceptable, had major platforms. But there were all sorts of other regions offering betting sites. Costa Rica. Antigua and Barbuda. U.S. Virgin Islands.
And while the lack of regulation certainly had drawbacks against important issues such as player protection, one thing was definitely certain.
The world of iGaming was completely decentralized.
These operations was started up by entrepreneurs looking to offer something new and exciting to players. This healthy competition drove the innovation that led to incredible in-play betting options, hundreds of unique markets per game, and a variety of online casino products.
Fast-forward to 2021.
The landscape of iGaming is completely different than what it was when I began playing over 15 years ago.
There are still thousands of betting websites and brands across over 150 distinct countries, turning the iGaming market into a projected $100+ billion industry by 2026.
However, the average player doesn’t know that a majority of those brands are owned by a few international iGaming conglomerates.
The top 7 iGaming corporations are worth over $20 billion and have over 100 of the biggest brands in online betting under their umbrellas.
That means that as of 2019, nearly $0.50 of every dollar made from online betting was going to the same small circle of executives and the partners within their ecosystem.
Even worse, their substantial wealth and buying power means that they are able to easily buy out emerging competitors by making offers that smaller operators simply can’t refuse.
Basically, as soon as an online sportsbook or casino becomes successful, they add them to their portfolio.
Why centralization in iGaming hurts the industry.
So, what’s the problem if the same companies are buying up all the competition? If they are making money, it must be because they are offering players what they want, right?
Centralization of profits
The most obvious issue is that all the profits being generated in an over $50 billion industry are being directed to the top. Much like the banking sector, a few executive boards are able to gain immense wealth, while the average person cannot benefit.
Of course, there is the possibility to purchase stocks in some of these corporations (while others remain private). However, getting in about 20 years too late to the party means that investors will only receive minor benefits, while the conglomerate takes advantage of their capital injection.
Too much concentrated power
Having only a few major players means that the individuals that run these companies can massively impact the direction of the iGaming market. Through a combination of their wealth, networks, and resources, these multinational conglomerates virtually have the control of an entire industry.
Even though stocks have been issued by several of these companies, the future of the project is entirely decided by a few at the top.
Limits the need for innovation
What really got the world of iGaming to where it is today was that intense competition to the be best back in the late-2000s and early-2010s. Companies were adding everything from ‘Cash Out’ to live casinos, all in an attempt to stay ahead of the competitors.
As a few companies take over the entire world of iGaming, they can easily become complacent and not invest more money into innovation, creativity, and an enhanced player experience.
Repetitive offerings to players
Aside from the major betting operators, there is also a centralization in companies that supply games, data feeds, payment processing, and other operational necessities.
The same handful of game creators supply all the major online casinos with slots and casino games, while sports data stream options are limited to two major players.
This means that no matter which new casino players sign up for, there are almost assured to be playing the same games as they have before.
How Moonbet’s decentralized approach will benefit iGaming
After leaving my previous iGaming employer, I was looking for ways to create by own online sportsbook and casino. But, I needed it to be different.
I didn’t want to be just another _____bet.com that offered the same games, same experience, and (this may sound crazy to some) I didn’t care about receiving all the profits for myself.
My answer to being different came in the form of blockchain technology. I had been invested in the world of cryptocurrency since 2016, with my first purchase being Ethereum at $7.
After studying all the potential that blockchain could have in the iGaming world, my team and I founded Moonbet in December 2020 to disrupt the industry.
Here’s how.
Decentralization of profits
The entire basis of the Moonbet ecosystem is to allow anybody to experience the benefits of being an online casino and sportsbook owner.
We will divide the profits from the blockchain-based Moonbet Sportsbook & Casino in half.
The first 50% will be distributed through airdrops directly into the wallets of MBET token holders based on the amount of tokens they hold.
The second half will be reinvested into the operations, marketing, development, and everything else that can drive revenues for the platform.
Community governance
What is truly unique about our project is that it will be led by a group of iGaming, marketing, and development experts, but driven by the community.
This means that we will be managing the foundation and daily operations that will deliver an exceptional player experience. However, we want the Moonbet community to help us decide the future of the project.
Through community voting, MBET holders will have their say in new games being added to the platform, new sports partnerships, upcoming cryptocurrency additions, and other elements going forward.
Endless innovation
Our Phase 2 of Decentralization in the Moonbet project is all about innovation.
By developing our own blockchain and allowing developers to create new games within our ecosystem, we will be rewarding those who come up with exceptional ideas.
By bringing non-traditional casino game designers into the mix, we can create some very interesting products for players that traditional betting companies may not have thought of.
No selling out
When I first started Moonbet, I was offered advice from all sorts of people in iGaming.
The most common thing I heard?
‘It’s a great idea! Start it up and once it becomes popular, you can sell it to one of the big corporations and cash out.’
This is the way that old-school executives in iGaming think. Make a new project. Gain traction. Receive an offer from a big company. Sell. Start over.
Not with Moonbet. Our team only has 10% of the entire MBET tokens in existence, with myself holding 2% (the most that anybody can have).
This means that nobody can sell out because nobody is a true owner of Moonbet.
We all are.
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Jason Poprawa is the founder and CEO of Moonbet.
To learn more information about the project, visit:
www.twitter.com/moonbetofficial
