Arsenal Football Club Steps into the Cryptosphere
London’s Arsenal football club has agreed to a sponsorship deal with CashBet, an online gaming business based in California. CashBet would like to help gaming companies facilitate bets placed using cryptocurrencies with its software. The well-known premier league team will be promoting CashBet’s ICO. Most of the advertising will take place at the Emirates Stadium during Arsenal’s home games.
CashBet intends to raise between $40-$70 million through its ICO. The gaming company would also like investors to use its coins to place bets on different online games. Vinai Venkatesham, the Chief Commercial Officer at Arsenal F.C., said that his company was looking forward to working with CashBet as the company gets set to launch its coin. However, when questioned about suggesting that fans should bet with CashBet coins or be promoting a rather risky and volatile venture, a company spokesperson remarked, “Not at all…It [partnership] does not exist to encourage fans to bet with CashBet Coin.”
Due to this kind of contradictory information, provided by CashBet and Arsenal representatives, the exact purpose of this partnership remains unclear. Notably, this happens to be the first time that a major sports organization has promoted a cryptocurrency-related business under public scrutiny. CashBet says that Arsenal is its “exclusive and official blockchain partner” while the football club’s representatives call CashBet their “first official cryptocurrency partner”.
Dangers of ICOs
Regulators around the world have been cracking down on ICOs with countries like China attempting to ban them completely. There seems to be a good reason for doing so, considering that over 10% of the funds put towards ICOs ends up getting “lost” or stolen. This amounts to over $400 million. There have also been numerous fraudulent schemes that have been orchestrated under the guise of ICOs. If something similar happens with CashBet’s ICO, then this could tarnish Arsenal’s reputation. Since ICO’s are increasingly being linked to scams, this just might be an ill-advised move by the football team.
Betting with Crypto
Nevertheless, the gambling world is no stranger to cryptocurrencies. Bitcoin gambling is already pretty popular. As reported earlier by Core Media, Asian casinos are now trying to bring crypto to their gambling floors. Whenever you put two high-risk activities together, in this case, cryptocurrencies and gambling, you’re bound to run into problems. Although gambling with crypto seems thrilling, it could become quite challenging to regulate. However, if we can accept sports betting, then why not accept sports betting with crypto? It’s all good until something shady happens. This is a risky scenario financially, but somewhere, the potential reward MUST outweigh the risks or this group of business-minded people would not have all agreed on this new partnership. Keep an eye on this, definitely.