The online gambling industry is experiencing rapid growth and has the potential to be one of our fastest-growing. This market has a value of $67 billion at present and could grow to $93 billion by 2023.

Is blockchain technology a possibility to transform the gambling industry? Crypto technology adoption could bring transparency, trust and security to gambling operations. This could make online casino gambling legal in different states and countries.

Rossen Yordanov (CMO of Azuro) discusses how a decentralized global betting system could help democratize the betting market in an exclusive interview with DailyCoin.

The Lack of Trust in the Gambling Industry

Online betting is not always transparent and fair to the players because of the power imbalance. There are also scammers, hackers and fake websites.

Paruyr Shahbazyan (CEO at Azuro), was the inspiration for the Azuro protocol. Paruyr Shahbazyan, Azuro’s CEO, was a 20-year professional sports bettors. He witnessed the same practices as online gamblers, including not being paid.

“There is general lack of trust and fairness, and generally all the control in the betting process is in the hands of bookmakers, and there’s this almost rivalry between the players and the bookmakers,”
thinks Yordanov.

Yordanov believes that transparency is the foundation of Azuro, one the largest European companies to cover sports betting. The protocol acts as a mediator between players and bookmakers, bringing trust and fairness into the game.

“We think that business itself will be disrupted by decentralization and the fact that betting can happen in a trustless way and in a transparent way,”
Yordanov says.

When betting online, blockchain can remove the need for a central authority. This technology makes it possible to log, store, and process all placed bets across multiple computers. Additionally, cryptocurrency is used as a form of payment.

Decentralized Solutions

Azuro utilizes smart contracts to build a decentralized betting protocol, bringing full transparency to the betting process. It envisions a community-run, open-source betting system with lower service costs for players and greater responsibility.

According to the team, blockchain can be used to democratically manage the sports betting industry. This will allow bookmakers to have fewer roles and make it easier for everyone to take advantage of.

Yordanov explained that bookmakers have traditionally had to be able to accept wagers and ensure a player’s payout. To be successful over the long-term, bookmakers must manage odds carefully and set odds in a way that is profitable. They also need to make sure players do not place their money on odds that they don’t like.

Bookmakers must deal with settlements, winnings payouts, and managing bet loss when events occur in a certain way. Bookmakers also have a relationship with players and can make player acquisitions or promotions.

Blockchain can take over the bookmakers’ place and build decentralized infrastructure. Azuro protocol provides decentralized liquidity to allow betting on-chain. The protocol allows anyone to provide liquidity, and not only the central authority.

Protocol also determines the outcome of the event. Smart contracts distribute the winners to players by importing results through oracles.

“The fourth part, which is essentially the relationship with the players, is going to happen via, we call them front ends, but you can also see it as apps that are built on top of Azuro protocol and essentially just do promotions, player acquisition and so forth, but they tap into the liquidity, the odds setting and the settlement of the protocol,”
Yordanov explains.

Solving Liquidity Problems

Yordanov sees drawbacks with the current system of providing liquidity, which involves many risks. In order for a market market to exist, one must provide liquidity. This is dependent on the event.

Because they hold a large number of tokens that are tied to an event’s outcome, liquidity providers run a high risk of losing their bets. This can be a major obstacle for the growth of liquidity as well as the market.

Azuro’s solution provides liquidity, which is not event-specific. It is then used for various events. Liquidity providers have little betting risk as they can be used for many different events. The protocol clarifies what liquidity providers expect to return and allows for market growth.

On The Flipside

• Changing the status quo of the industry could be a challenging task for any business.
• Protocol creators must be able to work with more markets.

Why Should You Care?

It is one of the most promising and fastest growing industries. Blockchain technology will allow players to expect a more transparent and fair management of their betting transactions. Blockchain technology is now available to mass adoption by entering the vast industry.

The full interview can be viewed here.

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