Everyone is using blockchain tech – can you name an industry that is not? If you can, we can almost guarantee they will begin using it soon. One of the industries starting to use blockchain tech heavily is sports. Read on to learn how.
Sports Industry Overview
According to The Business Research Company’s Sports Global Market Report 2023, the sports sector is rapidly growing worldwide – its global market value rose from $486.61 billion in 2022 to an estimated $512.14 billion in 2023. Reports show it should reach (approximately) $623.63 billion by 2027 – staggering numbers indicating a compound annual growth rate (CAGR) of about 5.0%.
Blockchain integration could play a massive part in driving this expansion through metaverse sports innovations alone, projected to become an $80 billion opportunity by 2030.
The Impact of Blockchain on the Sports Industry
Blockchain is bringing new waves of innovative development within the sporting world by providing better data analytics, secure smart contracts, and revolutionising fan engagement and monetisation models.
Teams can use blockchain technology to monetise their fan bases and create stronger connections with supporters. This system ensures safe publication rights handling through transparency between publishers and consumers on everything, like membership cards and endorsements.
Modernisation of Sports Engagement Through Blockchain
Ticketing
Creating a secure and transparent ticket exchange marketplace where all parties can verify transaction authenticity reduces fraud ten-fold related to counterfeit ticket sales, especially for big matches like NBA Finals games.
Sports Betting
The global sports betting industry is massive, predicted to reach a value of $182 billion by 2023. Blockchain platforms offer tamper-proof ledgers for transactions, enhancing trustworthiness within different gambling spaces. A leading gambling site will need to be able to demonstrate a willingness to quickly embrace new advancements in the blockchain arena, since this is by far the most effective way to demonstrate a brand’s commitment to security and privacy for players.
This trust extends to, but is not limited to, casinos like non gamstop casinos, online/offline establishments such as bookies and sports betting platforms etc. It minimises risks associated with hacking attacks and fraudulent activities since such bets placed through this system are technically smart contracts that execute themselves according to outcomes. There is no need for intermediary payments and risks.
Fan Tokens
Fan tokens are one of the most exciting ways sports utilise blockchain – they are increasing revenues for sports teams and engaging fans. With blockchain technology, supporters can buy tokens that may be redeemed for collectables, merchandise or even voting rights within the club. That deepens financial ties between clubs and their followers and empowers more people to get involved in managing teams. Well, at least thinking they are managing teams.
Sport Governance
Adopting blockchain for sports governance ensures transparency in decision-making processes. When all actions taken by an organisation go onto a decentralised network where they cannot be changed or deleted, trust is established.
Data Management
Blockchain could transform data management in sports through its ability to provide enhanced accountability and transparency features. It enables accurate tracking of performance metrics, ticket sales figures, and sponsorship deals, reducing the number of conflicts arising from different parties.
The Integration of Blockchain in Esports and iGaming
The esports industry, which is already predominately digitalised, is embracing blockchain technology to improve game fairness, player transactions and audience participation. Here are some ways that blockchain can be applied in esports and iGaming:
Smart contract-enabled betting: This ensures that people only get paid when they win, and they do so based on verifiable results.
Digital collectables: NFTs can create unique items within games to trade or even player cards.
Decentralised platforms: Decentralised platforms eliminate the middlemen during team transfers or prize distribution among winners.
These developments foster a more connected and immersive experience for players and viewers.
Prominent Examples of Blockchain Use in Sports
Manchester City FC and FC Barcelona have integrated blockchain into their digital strategies by creating fan tokens that enhance engagement with supporters and open up additional revenue streams for the clubs. FC Barcelona raised $1.3 million within two hours during the initial sale of its fan token offering (FTO).
Blockchain has not only revolutionised traditional sports – it has swiftly integrated into eSports and sports gaming. Technology may completely change this space in the coming years. It will be interesting to see how the integration grows.
