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Daily Fantasy Sports site MyDFS is betting blockchain to redefine its games through better transparency. The startup has just put its tokens on sale with a hard cap set at $100 million.
The first major problem facing fantasy sports is a lack of transparency,” Viktor Mangazeev, CEO at MyDFS told Venturebet this week. “Even among the largest companies in the industry, we don’t know how the software operates because they are closed, proprietary systems that we’re not allowed to investigate. Therefore, it’s easy for rumors to occur about insider gaming, bot-assisted play, or the manipulation of game statistics which can cast doubt on the entire operation.”
Mangazeev is betting on blockchain to change the perception of Daily Fantasy Sports and winnings only going to around 10% of those who play.
“Our platform embraces transparency and fair play, Mangazeev said. “Our cryptocurrency tokens eliminate the need for fiat currency. The accuracy of our fantasy results is backed up by smart contract technology. The real-world game data that determines how players on our platform do, along with players, teams and statistics, are completely publicly accessible.”
Cryptocurrencies make sense the same way they do in the online casino, poker and sports betting realm. That's because payment processing through other means such as wire, credit card, checks and direct deposit methods now have their limitations, especially in so-called "grey markets". Today these "grey markets" make up more than half the globe, including regions where gambling is accepted as foreign governments look to protect their own monopolies and maintain a competitive edge.
“The financial infrastructure that serves the fantasy industry doesn’t make it easy to get winnings to players,” Mangazeev said. “It might take two weeks for your check to show up in the mail after you win your league. In 2016, Vantiv, the largest credit and debit card processing company in the United States, issued a statement and walked away from FanDuel and DraftKings. Imagine people having money on their balance and being unable to withdraw it, making it feel like their money doesn’t belong to them anymore. The blockchain solves these problems elegantly, because it is a decentralized platform. There are no middlemen here who might simply decide to skip out on delivering your money.”
- Gilbert Horowitz, Gambling911.com
