A Deep Dive into BetDex and Web3 Betting Ecosystem

21 min readJun 30, 2023

Overview of the Sports Betting

The sports betting market is booming, with a global value of USD 83.65 billion in 2022 and an expected compound annual growth rate of 10.3% from 2023 to 2030. It’s no surprise considering the recent changes in the global gambling sector regulations, the growing use of connected devices, and the development of digital infrastructure.

Every year more than 2 Trillion dollars worth of assets are betted by individuals on different occasions. It is more than the GDP of some of the biggest major countries like Italy and Germany. Let that thought sink in.

Even though the COVID-19 pandemic has affected the sports industry, it’s interesting to see that online sports betting gained popularity during the pandemic, with the rise of eSports and similar forms of betting.

What’s more, smartphones have made sports betting more widely available and accessible, with mobile devices contributing to around 70% of online betting revenue in 2020, according to a recent survey by Uplatform, a sports betting and casino operating platform.

Today, We are gonna deep dive into Betting markets and how Web3 is revolutionising the traditional betting industry taking BetDEX as an Example. BetDEX is a Web3 betting app that let you bet on your favourite sports like Cricket, Football and basketball.

So, let’s start with government regulations on betting.

Regulations on Betting

Governments worldwide are easing regulations on betting and gambling activities, creating new opportunities for both operators and consumers. For example, the American Gaming Association reports that as of January 2023, sports betting is now legal in 36 U.S. states, up from 32 in 2021.

In the first ten months of 2022 alone, users legally wagered an incredible USD 73 billion on sports in the U.S. This trend suggests that the betting industry is thriving and that we can expect to see continued growth in the years ahead. As more countries legalize sports betting, the market is likely to expand even further, creating exciting new opportunities for industry players and sports enthusiasts alike.

Due to this high increase in participation in Betting, many new forms of betting have evolved in recent times, one example is e-sports betting. Increase of the internet and technology the whole sector is developed, and become one of the biggest betting sectors.

Types of Betting.

In 2022, the fixed odds wagering segment dominated the sports betting industry, accounting for over 26% of the revenue share. However, the fastest-growing segment is predicted to be eSports betting, with a projected CAGR of over 14% during the forecast period.

Interestingly, according to DataReportal, around 60% of the world’s population has access to the internet, making online sports betting more accessible than ever before. With such a large percentage of the population online, it’s no wonder that the betting industry is seeing a surge in growth.

It’s important to note that behind these numbers and statistics are real people who are passionate about sports and betting. As technology continues to evolve and betting becomes more accessible, sports enthusiasts worldwide can easily place bets on their favourite teams and players. Whether you’re a die-hard fan or just enjoy the thrill of the game, the sports betting industry offers a range of exciting opportunities for both operators and consumers alike.

Major Sports Betting Markets

Europe is currently the largest market for sports betting, with a market share of over 35% in 2022. As the industry continues to grow, the region is expected to expand at a CAGR of almost 10% during the forecast period.

One of the reasons for Europe’s dominance in the sports betting industry is the favourable regulations in place across European countries. This has allowed for a thriving and competitive market that benefits the population.

The United Kingdom has been at the forefront of legalizing sports betting, with laws permitting the activity since 1960. These well-established regulations have led to a thriving market for sports betting in the country. The online sports betting segment has seen remarkable growth across Europe, with offline/retail betting activities facing restrictions. Consequently, the online sports betting market in Europe is projected to surpass USD 40 billion by the end of the forecast period.

In contrast, the Asia Pacific region is expected to see the highest compound annual growth rate (CAGR) of over 11% during the forecast period. One of the significant drivers behind the growth of the sports betting industry in this region is the rising percentage of the population participating in various forms of sports betting activities. As several countries in the region legalize the gambling industry, overseas market players are also attracted.

Gambling is a popular pastime in China and India, with around 80% of Indians reportedly gambling at least once a year, according to the India Internet Player Society (IIPS). As sports betting continues to gain popularity in the Asia Pacific, the region is poised to become a significant player in the global sports betting market in the years ahead.

As most of the betting happens online it has been a good boost for the betting industry but there are also some big problems with traditional betting websites like restrictions on betting, funds lock up, high fees and many more. In fact, many companies are often not regulated by any governing body, due to which many people lose their money in scams and rug pull.

Traditional Problems with Online Betting:

There are several problems in the online betting industry. Some of the major problems are as follows:

Fragmented Market: There are currently thousands of sports betting sites to choose from, but the problem lies in the underinvestment in their products. Most of these sites still use basic HTML technology, which is not even up to web2 standards, let alone web3. This results in subpar products that are not mobile-friendly and do not function properly.
High Fees: Moreover, these sites often have a small liquidity pool, which means that you cannot stake your bet above a certain amount. In addition to this, the fees and commissions charged by these sites can be as high as 40%, which is a significant amount.
Lock Up Funds: Another issue with these sites is that they often lock up your money and require you to play multiple times before you can withdraw your earnings. This can be frustrating for users who want to withdraw their winnings promptly.
Counterparty Risk: To make matters worse, some of these sites are unreliable and can disappear overnight, leaving their customers in the lurch. Winning customers is also not welcomed and may be restricted, which can be disheartening for users who are looking to make some profits.
Winners aren’t welcome: BetDex recognizes that all these issues are major problems for users and strives to offer a better betting experience by addressing these concerns. They were committed to providing a reliable, user-friendly platform with competitive fees and commissions, and we welcome winning customers with open arms.

These are some of the problems that regularly occur in the traditional betting industry. Many of the regular bettors face huge losses due to these problems. These all problems can be easily tackled by the integration of blockchain infrastructure and decentralisation.

Decentralised Betting.

In the world of sports betting, there are two options for bettors: traditional sportsbooks and decentralized sports betting platforms. Traditional sportsbooks are run by bookmakers who act as intermediaries between the bettors and the sports events they are betting on. They take a commission on each bet and can limit the amount that bettors can wager, particularly if the bettor has a history of winning big. Additionally, the payout process can be slow, and there is always the risk that the sportsbook will go bankrupt or run off with the bettor’s money.

Decentralized sports betting platforms allow users to place bets directly with each other through a blockchain-based system, without the need for intermediaries such as bookmakers.

The use of blockchain technology ensures the transparency and security of the betting process, as all transactions are recorded on a public ledger that cannot be tampered with. This makes it harder for hackers or fraudsters to manipulate the system or steal funds.

Additionally, decentralized sports betting platforms often have lower fees compared to traditional sportsbooks, as there is no need to pay commissions to bookmakers or other intermediaries. Overall, decentralized sports betting offers several advantages for users, including faster and more secure betting, greater control over their funds, and lower costs

Let’s understand with an example: Mani is a frequent bettor who enjoys placing bets on his favourite sports teams. He has been using a traditional sportsbook platform to place his bets, but he’s become frustrated with the high fees and restrictions imposed by the platform.

One day, a friend tells Mani about a decentralized sports betting platform that operates on the blockchain. Intrigued, Mani decides to give it a try.

He creates an account on the platform and is pleased to discover that he can place bets on any sports event he wants without any restrictions. The platform uses smart contracts to automatically execute the terms of his bets, and since the platform is decentralized, there is no need for intermediaries such as banks or payment processors.

Mani also enjoys the fact that the transaction fees on the platform are negligible compared to the traditional sportsbook he used before. He can withdraw his funds anytime he wants without any delay, as there are no restrictions on his account.

Moreover, since the platform operates on the blockchain, all transactions are recorded in a public ledger that is tamper-proof and transparent. This means that Mani can be sure that his bets are being placed fairly and that the outcomes are not being manipulated in any way.

Overall, Mani is very pleased with his experience on the decentralized sports betting platform. He can place bets on any sports event he wants without any restrictions, and the platform operates with transparency, security, and low transaction fees.

Now we know what are the advantages of the Decentralised betting protocols, let’s take a look at BitDEX, which is the most seamless betting protocol on Solana.

BetDEX Exchange

BetDEX Exchange officially launched on Solana’s main-net on November 17, 2022. to coincide with the beginning of the 2022 FIFA World Cup.

BetDEX Exchange is a platform that seeks to revolutionize sports betting by leveraging the Monaco Protocol and Solana to create a decentralized sports betting exchange.

The exchange provides a peer-to-peer (P2P) marketplace where traders can come together and trade their opinions on different outcomes in sports using cryptocurrency.

Non-Custodial

Decentralized exchanges (DEXs) differ from centralized exchanges (CEXs) in that they provide a non-custodial platform where users retain control over their funds while trading. This provides users with greater security and trustworthiness since they have complete control over their funds, and can make transactions without intermediaries.

2. No Stake Limits

On BetDEX, there are no limitations on the size of bets that can be placed. This is a significant advantage for high rollers who want to place large bets without being constrained by limits. BetDEX allows users to place bets of any size, from $10 to $10,000, without any restrictions.

3. Low Fees

BetDEX Exchange enables users to conduct transactions securely and transparently while minimizing the fees that would have been charged by intermediaries on centralized exchanges. Currently, BetDEX charges two types of fees:

Solana Transaction Fees: These fees are charged by the Solana blockchain network for processing transactions. Although BetDEX has no control over these fees, they are typically very low.

Operator Commission: This commission is charged by the exchange on winning trades. The commission rate is currently set to 0%, ensuring that users keep the entirety of their winnings.

4. Immediate Withdrawals

When you win a bet on BetDEX, you can withdraw your winnings instantly from your wallet. Unlike traditional exchanges, where you may have to wait days or weeks to withdraw your funds, BetDEX allows you to access your winnings immediately. This means you can use your winnings to place more bets or withdraw them from your bank account.

In addition to these benefits, the BetDEX Exchange also ensures that users have access to the latest information and updates on their favourite sports.

By leveraging the Monaco Protocol and Solana, the exchange can provide quick and efficient transactions, making it the go-to platform for sports betting enthusiasts.

Overall, the BetDEX Exchange is poised to disrupt the traditional sports betting industry by providing a decentralized platform that is secure, transparent, and efficient.

Risk-Free First Bet

BetDEX is providing a risk-free initial wager of up to $50 to newcomers. This presents an excellent chance to get familiar with the platform and enjoy the excitement of decentralized sports prediction.

Company’s Profile

Founder’s Profile

Varun Sudhakar — CEO and Co-Founder of BetDEX. Previously VP of Finance & Strategy at Hive and VP of Finance at Simplifeye. Senior Manager at FanDuel prior to that.

Nigel Eccles — Chairman and Co-Founder of BetDEX. Co-Founder of FanDuel and Flick. Helped create StarStock.

Stuart Tonner — CTO and Co-Founder of BetDEX. The first engineer hired at FanDuel, served as Head of Engineering and Chief Technology Officer at LeaseLoco before joining BetDEX.

The Monaco Protocol

The Monaco Protocol is the underlying infrastructure powering the BetDEX exchange. It is a decentralized liquidity network for exchange-based applications and is built on the Solana blockchain. It is fully open source meaning other applications can be developed and benefit from the shared liquidity pool that the protocol provides.

Benefits of The Monaco Protocol

This trading platform is fully non-custodial. Funds are held in escrow and paid out to the trader’s wallet upon settlement. It streamlines the wagering process by allowing traders to specify the highest price they are willing to take on a particular market outcome.

The platform incorporates the concept of smart matching/exposure in directly correlated outcomes. This ensures that the smart contract only takes the minimum amount necessary from a given trader’s wallet to safely cover that trader’s maximum exposure across all of the trades they have placed in a set of directly correlated outcomes. Traders can cancel unmatched or partially matched orders at any time.

The platform helps provide greater liquidity for participants, reduces spreads, and offers lower prices. It also lowers the take rates of institutions and intermediaries. Furthermore, it reduces settlement times, increases transparency, and improves capital efficiency. The platform incorporates the ability to determine the outcome of events in a decentralized fashion based on third-party oracles.

You can also contribute to Monaco Protocol. (https://github.com/MonacoProtocol/protocol)

Functioning of Monaco Protocol

The Monaco Protocol offers the ability to wager on the binary-outcome events, it is agnostic to the nature of these events. Orders can be placed either FOR the outcome (it will happen) or to AGAINST it (it won’t happen) at a specific price (odds) and stake (wager).

Architecture

The concept of a market is comprised of three primary accounts:

1. Market Account This contains core market information such as the title, type, status, lock time, outcome, and linked event.

2. Outcome Account There is one such account for each possible outcome on the market, with each containing a price ladder.

3. Outcome Matching Pools There is one such pool for each possible resolution and price of a market (for example: price of 10 FOR, price of 10 AGAINST, price of 2 FOR). These pools contain matching queues to facilitate the matching of orders.

If you wish to learn more about Monaco protocol you can visit: https://docs.monacoprotocol.xyz/

Solana

Solana is a decentralized blockchain that has been designed to enable scalable and user-friendly apps. It is a blockchain that runs on a unique consensus algorithm that enables fast transaction speeds while maintaining security.

This makes it a perfect fit for the BetDEX Exchange, which has been built on the Solana blockchain network due to its speed, high transaction throughput, and low transaction cost.

Solana’s speed and low costs are crucial elements for any exchange-based mechanism. They serve as the foundation for building amazing user experiences. With Solana’s theoretical TPS speeds of up to 50,000/s, BetDEX Exchange can easily handle a large number of transactions with minimal delays and at a fraction of a cent per transaction.

Moreover, Solana’s fully-audited protocol program eliminates counter-party risk, ensuring that user funds are secure and free from any potential loss.

Overall, using Solana’s blockchain network for the BetDEX Exchange is a wise choice that ensures a seamless user experience, while also providing a high level of security and reliability.

So keep in mind that you’re not dealing with a regular bookmaker the next time you place a wager on BetDEX. Instead, you’re making use of cutting-edge technology that enables efficient, safe, and direct trading with other users.

BetDEX User Guide✨

Here is the step-by-step user guide to bet on Betdex 👇

Open Betdex.com to access their landing page. Then, click on the “Launch App” button

2. If you are a new user, click on the “Join” button. Alternatively, log in directly if you have already registered.

3. Fill out all necessary details and click “Continue” to verify your email.

4. Verify your email with an OTP.

5. Select your preferred compatible wallet. In this case, I have chosen Phantom Wallet.

6. Provide your personal details such as name, username, and date of birth. Then, click on the “Continue” button.

Congratulations 🎉🎉!!

You have successfully registered on BetDex! Now, you can start your betting journey with BetDex.

How do decimal odds work?

Understanding Decimal Odds

In sports betting, odds can be presented in various formats. At BetDEX, they have opted to use decimals to express the odds or prices.

The decimal odds indicate the winnings one would receive for each $1 bet. Unlike other odds, the decimal number represents the entire payout rather than just the profit. This means that the stake is already included in the decimal figure, so there’s no need to add it back in, simplifying the calculation of the total payout.

To calculate the potential return, you can use the following formula:

where: S is the Stake D is the Decimal Odds Tp is the Total Profit/Total Loss

So, with a stake of $10 and with odds of 12.5, the total return to the user would be $125.

The greater the odds, the higher the potential returns but also, the less likely the bet will be successful.

Relation between Decimal odd and Probability

Decimal odds can be easily converted into probabilities by using the following formula

1/D=P

where:

D is the decimal odd P is the probability

1 / 12.5 = 0.08

To express this as a percentage we can multiply the probability by 100: 0.08 * 100 = 8%.

In other words, at the current prices, Rajasthan Royals have an 8% chance of beating Royal Challengers Banglore.

To understand more about odds you can visit here or can even refer this video

Understanding ‘Back’ and ‘Lay’ Betting on BetDEX 📚

In sports betting, BetDEX offers two different types of bets: Backing and Laying. When you “Back” a team, you are placing a wager with the hopes of them winning. Conversely, “Laying” entails betting against something, such as your favourite team winning the championship.

At BetDEX, you have the option to do both while also being able to choose the odds at which you place your bet. This feature comes in handy if you believe your team will win, but the odds offered by other sportsbooks are too low. With BetDEX, you can select your preferred odds and wait for someone to accept your wager.

It’s like having your own personal bookmaker since you have the power to establish your own markets and odds. As BetDEX is a betting exchange rather than a traditional sportsbook, you can bet against other individuals rather than a faceless company. You can buy and sell bets, much like buying and selling stocks, making it a market-based system.

The best part is that you have complete control over your bets and can change your mind at any time. This adds a level of engagement and competition that you won’t find with conventional sportsbooks, making BetDEX a thrilling and innovative way to place sports bets.

BetDex’s Current Sports Betting Markets 💹

BetDEX has made significant progress since its launch in November 2022. Initially, the platform offered betting markets for the English Premier League and the FIFA World Cup. However, since then, it has made tremendous strides by enhancing and diversifying its offerings, providing users with an extensive selection of sports betting options.

Presently, BetDEX provides markets for cricket, basketball, and football, with football enthusiasts having the luxury to select from a broad range of leagues, including the highly regarded Bundesliga, Series A, and English Premier League. Similarly, basketball fans can revel in betting on the NBA and NCAA basketball, making BetDEX a platform that caters to the interests of various sports lovers.

New Addition: Cricket 🏏

BetDEX has great news for cricket enthusiasts, as the platform now offers markets for the sport, beginning with the much-anticipated Indian Premier League (IPL). As one of the most-watched sporting events worldwide, with over 200 million TV viewers, the IPL is a platform for the world’s top cricket players. BetDEX’s inclusion of the IPL to its expanding range of markets is an excellent addition due to the sport’s massive fan base and passion.

For IPL betting, BetDEX is the ideal betting platform, catering to the needs of cricket lovers.

BetDEX is continuously expanding its markets and has plans to offer sports bettors even more choices in the future. The platform intends to introduce markets for other sports, becoming the go-to choice for all sports betting enthusiasts.

How to bet on BetDEX

Now let’s get into step-by-step how you can place your bet on BetDEX 🗒️

But, before placing your bet, you need to add SOL or USDT to your Phantom or any other wallet connected to BetDEX. Indian users can conveniently fund their wallets with USDT and SOL for transaction fees, enabling them to participate in the platform seamlessly. To do this, you can buy $SOL or $USDT on a crypto exchange like Binance and transfer it to your preferred wallet, such as Phantom.

If you don’t have a crypto wallet yet, you can easily create one.

Here’s 👈 a complete guide on how to create a Phantom wallet.

After adding cryptos to your account you can launch the BetDEX app.

The connected wallet is displayed in the top right corner of the screen.

2. Choose the sport you want to bet on, such as football, basketball, or cricket. (In this case I have chosen Cricket)

3. You will see all current and future matches available for betting.

4. Select the match you want to bet on. (In this example, we have chosen a match between Royal Challengers Bangalore and Rajasthan Royals.

5. The following interface will appear, allowing you to bet on either team by backing (in support) or laying (against) them.

6. Choose your preferred team to back or lay. In this case, we have decided to back the Rajasthan Royals.

The odds in blue represent backing the team will win), while the odds in red represent laying the team (will lose). You can choose your own odds at BetDEX and wait for someone to accept your wager.

7. Stake the amount you want to bet and choose the odds, then click “Place order.”

8. Approve the transaction from your wallet.

9. And done, your order will be placed.

10. You can see your active orders by clicking on the active order button.

Order Book

Orders at the top of the order book are unmatched back orders represented in pink. These orders require a lay order to be matched in order to become a trade.

Orders at the bottom of the order book are lay orders represented in blue. These orders require a back order to be matched in order to become a trade.

KYC and Isle of Man License

At BetDEX, a licensed betting exchange, customers are required to comply with KYC, which is short for “Know Your Customer.” The main goal of this requirement is to minimize the risk of fraudulent activities, including money laundering and terrorist funding, that could occur in online betting.

To comply with KYC, customers must provide official identification documents, such as passports or driver’s licenses, as well as their address information. In some cases, bank statements or other proof of wealth documentation may also be requested. BetDEX sets specific thresholds for KYC requirements.

BetDEX adheres to the following KYC levels based on your activity:

KYC Level 1 — A user has provided basic details, including name, DOB, and address (through Onfido).
KYC Level 2 — A user has proved their identity and address with documents (through Onfido).
KYC Level 3 — A user has proved their source of wealth with documents (through BetDEX).

BetDEX is licensed by the 🛡️ Isle of Man, which is a well-respected authority that regulates online gambling. This license allows BetDEX to operate legally in certain markets and ensures that the platform meets specific standards for providing a secure and reliable betting experience. By holding this license, BetDEX can offer users peace of mind and a sense of trust in the platform’s legitimacy.

Competitive Landscape in the Sport’s betting market

BC.game is an online gaming platform that offers casino games like slot machines, dice, and blackjack. Users can also place bets on sports events such as football, basketball, and tennis using various cryptocurrencies like Bitcoin and Ethereum.

The platform promises a transparent and fair gaming experience with provably fair mechanism. Users can also receive bonuses, promotions, and awards. However, users should exercise caution when using the website since it is not regulated by any official body. The platform’s user experience and design may not be as polished.

bookmakers.xyz

Bookmaker.xyz is a decentralised betting site that uses the Azuro Protocol. Unlike traditional bookmakers, it does not place bets against customers or holds onto user cash. Instead, users’ money is locked into predetermined blockchain smart contract outcomes.

It offers a variety of betting options without requiring users to create an account or go through document verification. The site runs on the Polygon (MATIC) and Gnosis Chain (xDAI) blockchain networks and offers weekly promotions.

Divy.bet

Divvy.bet is a decentralized betting protocol that lets anyone act as the house, share profits, and enjoy features such as guaranteed payouts, instant settlements, and compatibility with various wallets.

The platform operates through immutable smart contracts built on the blockchain for 100% anonymous and guaranteed betting, with no deposit requirements.

Dexsport

Dexsport is a decentralised betting system that lets everyone share a pool of liquidity. You can bet on sports, predict markets, do peer-to-peer betting, and collect NFT art.

The platform’s decentralised structure means no one company dominates. However, some users may worry about security and regulatory compliance because KYC and ID verification are not required. The platform looks good, but there may be occasional latencies. Some users think the creators didn’t pay enough attention to detail because the same response is given to different inquiries in the manual. Plus, one of the consultants has a questionable reputation.

Conclusion

Decentralized betting is the future of the betting industry, as it not only provides a seamless betting experience but also offers various benefits compared to traditional betting sites. Some of these advantages include low fees, no lock-up period, easy withdrawal, and many more.

With the help of Solana, BetDEX is one of the fastest and most cost-effective betting sites available today. You can easily bet on your favorite team and potentially win big. There is no limit to any kind of funds, and it has all the benefits of a decentralized betting protocol, such as low fees and easy withdrawals.

Moreover, the community of BetDEX is highly active and supportive. I personally had a great time interacting with other bettors on Discord. The community fosters a positive environment where individuals can discuss their betting strategies and learn from each other.

Overall, the future for BetDEX looks bright, and it is set to become one of the most prominent players in the betting industry. Its focus on decentralized betting and community building sets it apart from traditional betting sites.

Furthermore, currently, there is a contest going on in which you have no loss cover on your first bet up to $50 dollars. Additionally, there is another contest with a prize pool of $500, which you can check out on the website.

In conclusion, BetDEX offers an excellent platform for decentralized betting with its low fees, easy withdrawals, and active community. With its focus on innovation and customer satisfaction, it is poised to become a major player in the betting industry. So, if you want to experience the future of betting, head over to BetDEX today and join the community!

Acknowledgement:

This research about the BetDEX deep-dive has been conducted by Mani Bajpai and Grahil Khandelwal.

If you have any doubts/queries feel free to reach out to us over Twitter, Would love to connect!!

References