Over the course of the past year, cryptocurrency players have inked a plethora of new cooperation arrangements, and they are rapidly becoming a dominant innovation in the sports business. In the short term, crypto sponsors could bring much-needed cash flow to a market that is strongly affected by the COVID-19 pandemic.
However, in the medium to long term, the cryptocurrency sector is expected to become pivotal for sport assets and stakeholders to keep and expand a steady revenue flow in order to sustain growth.
The business of sponsorship in the sports industry is about to welcome an additional participant in the near future. Companies that operate digital lotteries are analyzing the competition posed by platforms that offer sports betting and cryptocurrencies in order to determine how they can successfully dominate the market.
Insiders in the business believe that digital lotteries are the next big thing in the commercialization of sports, which has been driven by betting and cryptocurrency for the past several years. They regard virtual lotteries as the future frontier in the commercialization of sports. They are giving bettors the chance to “Bet on a Crypto Lottery to win”, some are even calling it the “no-loss lottery”.
There are rhythms to the cycles of sports sponsorships. To begin, there was oil and tobacco, which, during the 1970s and 1980s, plastered their logos all over the uniforms of international sports teams. Then it was the turn of the alcohol industry and international finance to plaster their advertisements on the team jerseys and pitch-side billboard ads at the stadium.
At the moment, high-stakes gambling on sporting events, non-traditional currencies, and cryptocurrencies are providing funding for sports teams by way of their lucrative sponsorship deals. With the percentage of cryptocurrency and property sponsorships increasing from 5% to 59% on average the most prestigious tournaments in the world are welcoming crypto sponsorships with open arms.
However, what will the future have in store? Those with knowledge of the situation believe that virtual lotteries will soon enter the market in a fashion that will displace traditional gambling companies.
What Exactly Is A Digital Lottery?
In point of fact, the ‘activity’ might soon spread across practically the whole United States. The vast majority of digital lotteries are phone-based games, allowing players the convenience of purchasing tickets even when they are out and about. They are connected to state lotteries, in addition to Powerball and Mega Millions, and they effectively serve as a third-party aid to connect the player with the lottery.
One of these third-party companies is called Jackpocket, and they plan to launch its service in fourteen states. After investing 7 years into the research and development of the necessary technologies to break into the market, they went online for the first time in New Jersey in 2020.
Jackpot is a British company that has the potential to expand its presence in the US market if virtual lotteries become popular. Due to the fact that Europe was the first region in the world to offer legally sanctioned internet gambling 15 years before the United States, the significance of British knowledge in the American gambling sector is enormous.
The possibility of purchasing lottery tickets using a mobile device, similar to mobile betting on sports, is considered the key that will open the door for more people to participate in this market.
Moreover, it is not difficult to comprehend the rationale behind the insiders’ conviction that they have stumbled across a significant opportunity here. After all, the player pool for online lotteries is significantly larger than the one for online sports betting. In the United States, the minimum age to purchase a lottery ticket is merely 18, but the legal gambling age is 21.
How Do Digital Lotteries Work
Digital lotteries are made so that players can connect with state lottery providers like Mega Millions and Powerball. You can “buy” a lottery ticket through an app made by a digital lottery company. The company will then send your order to the state lottery to fulfill it.
You don’t have to get paper tickets if you don’t want to. You can also choose to get your ticket in a digital format. Your physical state lottery ticket and the one the digital lottery made for you are compared, and if they are the same, you win the prize for that drawing. Even though the technology is complicated and depends on robots and character recognition to work, the business world is sure that it works.
Will Digital Lotteries Brands Take Over Sports Sponsorship?
Digital lotteries are getting a lot of venture capital at the same time that sports betting and cryptocurrencies are going down. It has been a bad year for the two sectors that have been sponsoring sports for a long time. Companies like BetMGM have already said that after a successful NFL season in 2021, they will pull resources away from commercialization.
Approximately six years ago, sports gambling sites DraftKings and FanDuel started a land grab. That land grab is coming to an end, and since the value of crypto keeps going down, that industry is not ready to take over.
And so, virtual lotteries might come into the frame. Jackpocket has already made deals with eight teams in the NFL, NBA, NHL, MLB, and college sports. The New York Jets and the Texas Rangers are two of those teams. And Jackpot wants to join in on the fun.
And the reason for putting digital lottery logos on all of America’s major sporting leagues is the same as with other sponsorship pushes: to make the brand seem legitimate and get people to know about it.
Any business wants to be seen as legitimate. Whether it’s for tobacco, alcohol, banking, betting, or crypto, sports sponsorship gives a level of credibility that is hard to get in other ways. So it’s not surprising that companies like Jackpocket, which have now generated millions of dollars through investment rounds, are ready to move into the sports world.
Crypto Sports Sponsorships
One of the most significant ways for worldwide financial institutions to reach more people has always been through sports sponsorship. Branding and advertising partnerships with sports teams and athletes help financial companies get customers from all over the country.
There has been a big change in the way sports sponsorships work around the world. Foreign currency exchange brokerages like FXPro, Alpari, Instaforex, and Swissquote used to be the biggest players in this market, but in the past two years, crypto brands have started to rise to the top.
Since the beginning of 2020, crypto industries have invested billions of dollars in sports sponsorships and made deals with some of the most popular athletes in the world. During halftime of the most recent Super Bowl, which is the US National Football League’s (NFL) annual playoff championship game, ads for top crypto brands like Coinbase, Crypto.com, FTX, and eToro were shown.
Just Coinbase’s website got upwards of 20 million hits in the first minute after the ad was shown. Chemin Esports, one of the best eSports teams in India, has signed a well-known and talented player named Lokmanyu Chaturvedi to solidify their FIFA 23 Roster.
Conclusion
Cryptocurrency gaming is having a significant impact on the development of the new world of online gambling, crypto-based sports betting, and online lottery gaming. Bitcoin casino operators are not only secure and legal, but they also provide a large number of bonuses and other benefits to new customers and users who have recently enrolled.
Sponsorship deals are good for crypto bettors because they give them access to a large and diverse audience, let them use other platforms, and make their products and services more popular and trustworthy.
By making crypto deals, sports properties can open up a new source of revenue, speed up the digital transformation of their business, and find new ways to connect with their fans.
