Will operators ever bring bitcoin to the masses?

Cryptocurrency is common knowledge in the world of online gambling but to the man in the street, “blockchain” and “bitcoin” are most likely two words shrouded in mystery. Former Paddy Power Betfair CEO Breon Corcoran described the crypto industry as “super sexy” in a recent interview with EGR Intel, but the unregulated nature of the decentralised system means it is still someway off being adopted – or indeed understood – by the masses.

Those within the crypto-gambling industry understandably want that to change. Making business open to casual punters should provide a stiff uptick in revenues by opening up a whole new audience channel, but how can those pushing crypto betting help to raise the vertical’s public profile? The most obvious way is through marketing via mainstream channels.

A new approach

Coingaming Group was the first operator to go all-in on this approach. The operator’s Sportsbet.io brand became the main sponsor of Premier League side Watford at the beginning of this season. The three-year deal started out as a conventional football partnership, with front-of-shirt sponsorship, LED perimeter advertising and executive box perks agreed between the two parties.

But a brainwave from Coingaming Group CEO Tim Heath quickly developed the partnership further. In September, Sportsbet.io announced it was bidding to get bitcoin into the mainstream by using the logo of the cryptocurrency on Watford shirt sleeves. The sleeve sponsorship is crowdfunded (albeit underwritten by Sportsbet.io) and contributors will be granted bonuses at Watford including use of the Bitcoin Box for eight people and access to exclusive Watford merchandise.

Heath says: “I said why don’t we put the bitcoin logo on the sleeve, crowd-source it and get the whole bitcoin community behind owning a bit of the logo. It is almost a non-commercial deal which costs a million quid. People who love bitcoin and want to be a part of the community can take part in this initiative to take bitcoin to the masses. We are underwriting it and we hope the community gets behind it, supports it and donates towards it.”

Quite surreal watching Watford v Arsenal and Watford have the Bitcoin logo on their shirts. It all helps 😉🙏 pic.twitter.com/oLLeZ1eViR

— ukTC (@UKTraderCrypto) September 15, 2019

Heath told EGR Intel the partnership had created a real stir on cryptocurrency forums, with many taking to Twitter to salute the operator on its approach to the initiative. Was this the case?

“This is the biggest deal we’ve seen yet in the crypto gambling space,” says David Bartram, editor of crypto-focused affiliate site CryptoGamblingNews.com. “Bitcoin-focused operators have previously limited their marketing directly to the cryptocurrency community. Now Sportsbet.io is making a pitch to a mainstream, global audience and it can only help accelerate adoption further.”

As Bartram alludes to, most crypto ventures had previously been directed solely at the crypto community. This insular marketing method has proven successful in the past so why change it now?

Branching out

“There is already intense competition on the specialist channels,” says Bartram. “Bitcointalk, the largest bitcoin forum, has a gambling section with almost two million posts on it. Thousands of users operate on these forums as micro-affiliates, promoting casinos via signatures below their posts and standing out in this space is tough.” He adds: “The question facing the larger bitcoin operators is how to continue to grow at a pace that is not restricted by the speed of bitcoin adoption. The conclusion that many are coming to is to appeal beyond the core crypto community.”

While Sportsbet.io’s innovative approach to sponsorship has shown positive initial signs in accelerating wider adoption, the experts believe that education is the key to getting the average joes on side – particularly by reducing the complexity and jargon involved in conversations about crypto.

“I think it is important to separate the two different types of crypto gambling,” says Bartram. “You have blockchain-based gaming, where the gambling happens on chain, which is provably fair, and often involves purchasing a dedicated token created by the operator or platform. And then you have the growing number of casinos which simply accept bitcoin as a payment method.”

In the case of blockchain gambling, the community remains relatively small and specialised. Even the largest operators in this space have had a tough time marketing to normal players, although as technology improves and ways to communicate advantages develop, that is changing. Jez San-founded casino FunFair recently launched a new wallet to make the on-boarding process mirror a traditional casino, and this could create marketing avenues for the operator in the future.

The FunFair Wallet is here! We’re excited to announce the launch of our pioneering crypto wallet and new user interface which now supports any browser and any device.https://t.co/QvN02MIS2j#eth #guaranteedfair #casino #cryptocurrencies #business #funtoken

— FunFair Technologies (@FunFairTech) September 26, 2019

Site saturation

Before Sportsbet.io announced the bitcoin sleeve sponsorship, Heath said the operator had exhausted every available digital channel with a focus on cryptocurrencies. The business had nowhere else to go aside from traditional marketing methods and enticing people with fiat currencies, before trying to cross-sell those newly-acquired users on the benefits of bitcoin.

“The trouble is that these people have already been converted to the merits of gaming with cryptocurrencies,” says Bartram, when asked why operators have opted for more mainstream channels. “Making the same sell to people who have never used bitcoin before is a far tougher job. It requires education, a strong focus on the benefits, and of course a clear message that playing at cryptocurrency casinos is safe, trustworthy and secure.”

According to Heath, 90% of Sportsbet.io revenues come from players betting in bitcoin and ethereum. Sportsbet.io’s white-label site in the UK doesn’t offer cryptocurrency betting, but Heath made no secret of the fact a UK licence was obtained to rubber-stamp the Watford sponsorship.

Getting that 10% of fiat currency bettors cross-sold to crypto will be the next test. Then the real challenge of recruiting casuals can begin.