Cryptocurrencies have been one of the most talked-about subjects in recent years, and there is a good reason for that. Ever since the introduction of cryptocurrencies, we’ve witnessed major shifts in many different industries, including horse racing.
Cryptocurrencies opened the doors to the digital landscape and brought in clever solutions that weren’t available before.
Whether you are a crypto supporter or somebody who thinks that cryptocurrencies are just a scam, there is no denying their impact on this world. Cryptocurrencies introduced decentralization and digital ownership, which is kind of a big deal in today’s tech-driven world.
But what does this have to do with the horse racing industry? Well, let me tell you, the impact is huge. Cryptocurrencies have made horse racing betting more available, and have introduced digital horse ownership, virtual races, NFTs, and much more.
They’ve also unlocked many new revenue streams that can positively impact the entire industry and bring more money into the process. This will eventually lead to a more high-end race and increased popularity of the sport.
But let’s dig even deeper and find the true impact of cryptocurrencies on the Sport of Kings.
Betting Goes Digital
Horse racing cannot be imagined without betting. After all, we are all browsing the online horse betting promotions by TwinSpires before an event like the Kentucky Derby.
Right off the bat, one of the biggest impacts of cryptocurrencies in the betting world is the digitalization of betting. At this point, you probably think that betting was already digital, how have cryptocurrencies changed that?
Well, in many different ways. First, the entire blockchain technology introduces a new payment method, which is attractive for bettors. Why? Well, using cryptocurrencies they’ve already managed to overcome geo-restrictions or limitations in payment solutions.
In other words, horse racing betting is now available where people don’t have an option to place a bet.
Additionally, cryptocurrencies have removed the middleman (the banks) from the process. This means that transactions are now faster, there is less processing time, and, in most cases, cheaper than regular bank transfers (depending on network busyness).
Let’s take the UK, where horse racing is quite popular and an industry worth over £4 billion annually. At this point, cryptocurrencies have entered the world of horse racing, but we are still exploring their full potential. In other words, conventional horse racing betting methods are still more popular.
Imagine what cryptocurrencies could bring to an industry already making big numbers. This technology could streamline betting processes, make online transactions safer and more transparent, and make the entire process accessible to international fans without access to traditional banking systems.
Trust me, there are many countries like that, where it is very frustrating just because certain features are not available in your region. I am sadly part of such a country.
Digital Ownership and NFTs
Next up, NFTs (Non-Fungible Tokens). You’ve probably heard of these digital assets representing ownership of unique items, art or collectibles. Well, horse racing is getting in on this action too.
Now you may think that NFTs are already dead and a thing of the past, but you are wrong. Maybe the price of these NFTs reaching millions of dollars is out of the question, but we cannot deny the impact this technology can have on many industries including horse racing.
Imagine owning a share of a racehorse through an NFT. It’s already happening! Digital ownership can democratize horse ownership, allowing more fans to get involved without needing a stable or a hefty bank account.
Economic Implications
Enhanced Revenue Streams
Racecourses and betting platforms can tap into new revenue streams by incorporating digital currencies. For instance:
- Lower Transaction Fees: Digital currencies reduce the cost of processing payments, meaning more betting money stays within the industry.
- Global Market Access: Fans worldwide can easily participate, increasing the betting pool and boosting prize money.
- Racecourses also benefit. Major events like the Breeders’ Cup or the Grand National, which already draw huge crowds and extensive media coverage, could see even higher revenues through digital currency adoption.
Increased Transparency and Security
One of the significant advantages of digital currency is blockchain technology, which offers enhanced transparency and security.
This can be a game-changer for horse racing, where transparency in betting and financial transactions is crucial. Blockchain can help track the flow of money, ensuring fair play and reducing the risk of fraud.
Impact on Local Economies
Horse racing is not just about the tracks and the horses; it’s about the local economies. For instance, in California, the racing industry supports nearly 11,000 jobs and adds $873 million in direct value to the state’s economy. By embracing digital currencies, the industry could bolster these numbers by attracting more visitors and bettors, leading to more spending in local businesses like hotels, restaurants, and shops.
