Decentralized Web3 Betting Market Attracts Significant Investment
A recent announcement on August 1 revealed that DuelNow, a decentralized sports betting market, successfully concluded an $11 million funding round. GEM Digital Limited led the investment initiative, showcasing a growing interest from venture capitalists in the realm of Web3 gambling.
DuelNow, operating on Arbitrum, an Ethereum layer-2 solution, stands out as the latest addition to a series of venture capital injections into the Web3 gambling sector. This trend coincides with the escalating engagement on Polymarket, a cryptocurrency betting platform hosted on the Polygon blockchain network.
In July, Polymarket achieved a remarkable milestone by surpassing $1 billion in trading volume, primarily propelled by users wagering on the outcomes of United States elections. Specifically, the platform witnessed over $430 million in bets placed on predicting the victor of the presidential election on November 4.
DuelNow positions itself as a peer-to-peer betting platform, emphasizing decentralization to deliver reduced fees and increased payouts by removing the traditional house advantage. Currently catering to fans of NFL, MLB, NBA, and MMA, the platform intends to expand its offerings with more betting products in the pipeline.
Growth Potential in Global Online Betting Market
Source: Zion Market Research
The global online betting sector is forecasted to experience a 10.5% annual growth rate until 2032, highlighting substantial opportunities ahead. Noteworthy figures from the industry underscore the resilience and expansion potential of online sports betting.
Among the investors backing DuelNow are notable figures like Charlie Lee, the founder of Litecoin, and Billy Markus, the creator of Dogecoin, as outlined in the funding announcement.
Blockchain Integration in Sports Betting
The global online sports betting industry, valued nearly at $60 billion, is projected to sustain a growth rate exceeding 10% annually, according to Zion Market Research forecasts. Blockchain technology is progressively integrating into sports betting platforms, offering benefits such as reduced transaction costs and enhanced transparency, as observed by The Business Research Company.
In the tech realm, Maincard.io, a Web3 fantasy sports game, made its debut on the TON blockchain network after securing approximately $2 million from the Ton Foundation’s accelerator program in 2023. Additionally, Ixia Capital raised $20 million in June to fuel investments in online and Web3 gambling, with intentions to launch about 25 betting startups—largely in the Web3 domain—over the next five years.
Shuffle, a Web3 betting platform, successfully closed a $2.5 million seed funding round in February, with Andrew Kang from Mechanism Capital among the investors.
