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Project Announcement: DASH for sports betting business in Peru

Is the community interested in attracting sports betting businesses?

  • interesting

    Votes: 10 83.3%

  • not interested

    Votes: 1 8.3%

  • no more than other services

    Votes: 1 8.3%
  • Total voters
    12
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warriors

warriors

New member
Hi everyone,

I’m engaged in blockchain related initiative inspired by playbex.com which develops and provides solutions in gambling and primarily sports betting industry on the markets of CIS and Latin America.

Our immediate goal is to implement the world's first business case for the transformation of the offline sports betting business resulting in replacement of cash by DASH in settlements with the customers.

We anticipate significant changes in a current service model established in the industry under the pressure of very cheap and fast payment transactions expected on the ‘cryptocurrencies market.' To benefit from this shift, we adapt our solution to move payment processing on the blockchain. This is far more than just accepting payments in cryptocurrencies, but not a ridiculous idea of building an entire gambling service on the blockchain. As so, we are going to utilize Dash to achieve these changes:

1. Do not accept bets in cash. Minimize and eventually get rid of cash when accepting bets and paying winnings both at betting shops and self-service terminals. Instead, change the operating model to the following:
  • Provide customers with the NFC-cards with built-in DASH wallets. These cards will be issued through ATMs located in the betting shops or nearby. Allow customers to buy DASH for cash at the ATM and hold it in their NFC or mobile phone wallets.

  • Make provision to accept bets and handle payoffs in DASH through NFC and QR readers embedded in self-service terminals or used as standalone equipment at the betting shop cash desk.
If the operator doesn't work with cash, it reduces his operational risks and in some jurisdictions allows to avoid regulations or ban.​

The transition from cash to the cryptocurrency significantly reduces the technical requirements for self-service terminals. They become more compact, power-efficient and requires less number of peripheral devices (namely: NFC reader, QR scanner, and slip printer). Moreover, there is no need for special hardware and software used for financial control by partners who install the terminals in their own betting shops. These operations are moved on the blockchain. Cooperation with partners is simplified, and mutual payments are automated.​

2. Stop using customer deposit accounts. These days global cryptocurrency market goes through the significant changes as different blockchains compete strongly to provide users with high transaction throughput and extremely low fees. We foresee an emerging trend in the gambling industry which is unleashed by these changes: customers will strive to control their funds every single moment. This means no more deposits, only bets go under control of the betting service. Clients will make bets instantly, impulsively, anonymously, wherever and whenever, without registration and making deposits. New attracted clients may seamlessly place bets with their usual crypto wallets before they decide to install the betting application.

3. Instant, guaranteed, and transparent payments to partners, affiliates, and jackpots accumulation funds through the blockchain. Currently, partners and affiliates get their share of profit calculated for the end of the financial period. This will be changed and they will get a share of each bet placed by the player they attract. Rewards for the affiliate and partner and deductions to local and global jackpot funds will be sent to the corresponding outputs in the blockchain transaction inspired by each placed bet. Profit of partners will not depend on the outcome of the betting events anymore. They will not wait for the end of the financial period to get paid. This will be accomplished instantly.​

OnceBet is affiliated with the Playbex sports betting operator, which has been operating in Peru since 2015. This company is ready to participate in the project and transform its cash flow to DASH.

More details you may find at this link: https://goo.gl/dGbJEi

My primary goal of posting this announcement at the forum is to get feedback from the DASH community. Any opinion or criticism will be appreciated.

I will use this thread to keep you updated on how we're going on.
 
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Your comment of Dash being superior and replacing Cash in this ecosystem is a perfect use case. Subject to further details this looks like a very good proposal.

Im looking forward to seeing you progress this.
 
Answering the private question regarding the poker, I decided to share a part of my answer in the thread, as it clarifies our market positioning.

We don’t have a poker and need to say we are not planning to run it in the nearest future. We are mainly focusing on the sports betting, but working on several provably fair games: live roulette, dice, keno, mines (first two are already in beta testing).

According to the Global gambling market breakdown from 2007 to 2021, Sports betting has a stable share about 40%, while poker gradually decreases from 20% to 7%. To be honest, our product development strategy relies more on client's feedback on local markets, than such a global research.

In Peru, we make more 90% of income on football bets. We don't expect that upcoming provable fair games will change this share significantly. They rather will play a role o marketing incentives to attract new clients.
 
I've talked with this project team in person in Kyiv. They're very experienced in their trade and are very serious.

When there would be a proposal, I'll vote yes.

Disclaimer: I don't receive any benefits from them :)
 
I saw photos from your document. Judging by them, your customers are very far from any cryptocurrency (sorry if this sounds rude). How are you going to persuade them to stop using cash and start using Dash? Are not you afraid of losing your clients?
 
Hi sparkland,

Thanks for questions. My thoughts on this matter are the following:
  1. You can always easily motivate players to use innovations if you propose them the interesting and exciting conditions of the game. For this, we have several ideas and strategies, which we plan to evaluate during this pilot.
  2. We were the first company who bring self-service terminals to Peru and taught people how to use them. Today this is the most convenient way of placing the bets for customers. They don't want to go to the cash desk anymore.
  3. We were the first to implement the TITO system (Ticket-in, ticket-out) on terminals. It reduces a hassle customers had with cash and they like it. So switching to paper and NFC Dash wallets will be quite quickly.
We don't see any considerable risks of this transition.
 
This is another example of the need for DASH Tokens tethered to USD (or local currencies), instant confirmation and low volatility. Market speculation is ok, but the world needs more digital commerce and DASH can lead the pack.
 
Hi Koromoto,

This a good point. Just a week ago, @Dashmaximalist raised a topic on this matter here: https://www.dash.org/forum/threads/...in-more-areas-given-we-have-more-funds.18190/ I was interested to know the community opinion on this subject.

When it comes to our project, the Dash volatility has specific effect of giving more thrill to gamblers when they place bets. We're planning to show the Dash exchange-rate charts among other sports event advertisement videos and teasers on our self-service terminals and displays. So the drawback of volatility we're going to change for attracting the new customers.
 
Can you share some figures about your sales volumes? I think people here would like to know how much DASH your customers can buy during the month?
 
Hi Bitwise,

I may share this info:
  • An average betting shop in Peru can collect $20,000 of bets per months.
  • The number of players who visit such shop during the month is about 400.
  • The market capacity is much more than 1,000 shops.
  • We found that in-shop bets inspire the similar volume of online bets.
  • So monthly volume of accepted bets by such network could reach $40M ($20M from shops and $20M from online).
 
Hi Warriors,

Love this idea and think its great. As someone that learned about crypto through poker I think this is a great avenue. I have an idea for a proposal in a similar space that I am thinking of putting together. Might message you for your input. Hope to learn more about this soon!
 
Hi everyone,

We'll finish the technical design stage soon, and I'll share the developed specification. For those who like to dig into tech details, I decided to provide an overview of our architecture which is describing the current state of the Playbex platform (before the integration with Dash). One should read this document previous to upcoming technical spec.

https://goo.gl/KGbMKt

Feel free to ask any questions.
 
Awesome, hey I didn't mention it before but if you need any beta testers of software or anything let me know - plenty of online BJ experience
 
Hey warriors

I can understand when you want to accept bets in Dash. Eventually many gambling sites rush to offer players to pay in cryptocurrencies. But why do you need deeper integration with Dash blockchain? It is still unclear to me..
 
Hi Bitwise,

We need integration with Dash blockchain to achieve:

(1) Transparency in relations with players. With vanishing transaction fee we won't force customers to accumulate money on their accounts anymore. We better let a player release payment only when he's placing a bet. Eventually, we'll come to 'pay-as-you-bet' principle instead of keeping frozen funds on the client's accounts. When all bets and wins are kept on the blockchain, customers always have a public proof of their operations to resolve any issues with the betting operator.

(2) Transparency in relations with partners. Partner is a general term to describe any business entity which is getting a share of a betting operator profit (e.g., affiliates, white-label site owners, betting shops owners, etc.). To grow, you should attract new partners. The hardest and exhausting part is to deserve their trust. With Dash blockchain, we introduce the atomic settlements with partners inside a bet placement transaction. As a partner, as soon as customer place a bet, you get paid instantly. This builds the trust much faster.

You can find more details in our concept published in my initial post (or use this link: https://goo.gl/dGbJEi).
 
What will make your product distinctive from Betcoin.ag (who transacts in Dash among other coins)? I am 1000% behind pursuing use cases in the online sports and poker markets, but don't understand why once you somehow teach your bettors to be crypto savvy why they should continue to do business with you in particular. Gamblers have no reason to remain loyal.
 
Hi Photosynthesis,

Thanks for your question. Before I answer, I'd like to share my opinion on its context. For Dash community, an effectiveness of a particular service shouldn't be meaningful. If customers of such service gone to competitors to spend their dashes there, that's not a problem for Dash network at all. But what's essential, it's how many new healthy Dash users a service can attract. Besides that, gambling contributes an additional value. Gamblers subconsciously seek to loose they money. When they win, they bet again and again spending just gained dashes. That brings wishful cash flow and transaction volume to Dash network.

Now the answer to your question. You asked how we're going to retain customers when they become familiar with cryptocurrencies. In the scope of this project, we operate with two different segments of clients which we attract and retain in distinctive ways.

(1) Players who visit brick-and-mortar betting shops. There they want to meet people who share the same interests. It's like have a good time in a bar. And these people won't entirely move to online. When we open a new betting shop in the street beside competitors, we pull out their customers by giving them more gainfull odds for several months. We can afford it because we control our expenses at all stages: starting from odds production, software development, and up to the marketing and operation. Engaging new customers, we attain their loyalty by giving them things our competitors don't (gifts, free drinks, parties, tournaments, etc.). There is nothing new there. It's all about local competition of every betting shop. Some of them are managed by our company, and the rest are by partners. Regardless, each shop works hard to retain its customers. If a client likes the place, service, and betting odds, he stays with us.

(2) Players from social networks and messengers. We attract them to our chatbots, which are considered as standalone sales channels. Frankly, a customer stays inside such channel and doesn't go out to visit the website or mobile app. Most of the players don't want to think soberly, how to place a bet. They desire to bet a dollar and win a thousand without pain. Several years ago we published match statistics to our customers. We thought we'd help them to find a better option and make a good bet. No, we had a miserable number of visitors who accessed that data. Moreover, the extensive tables of odds and betting options provisioned on the website and mobile app look complicated for such players. Instead of digging the numbers they are always in a chase for a betting tip or insight. And that's what we give them.
 
Apparently, 99.9% of your customers don't have Dash wallets. In that case you should offer them one. Do you embed wallet features into your mobile application or plan to recommend users start using one from Dash Core wallet, Jaxx, etc.?
 
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