- ZenSports is looking to move into the U.S. sports betting market by the end of 2020.
- ZenSports offers a peer-to-peer betting model that differs from major sportsbooks.
- This model could end up saving bettors money with lower fees.
LAS VEGAS - A new sports betting startup is looking to revolutionize the way we bet on sports.
ZenSports is a company that is attempting to break into the United States sports betting market and win a competitive advantage by offering a different business model from the large online sportsbooks that bettors are accustomed to.
ZenSports is currently licensed as a sportsbook in Curacao.
The basic idea of the business model is twofold. First, ZenSports, instead of serving as the proverbial “house” that you bet against, allows you to bet against other people.
Basically, you set up a bet - from the amount you’re willing to bet to the odds you’re willing to bet on - and then ZenSports matches you with a person who is willing to take the other side of that bet.
This allows them to charge lower fees, in effect. Most sportsbooks include what is known as a “rake” in their odds. The goal for a normal sportsbook is to pay the winners with the money made from the losers, and pocket the rake.
For ZenSports, the model is different - they make their money on the transaction itself. They charge a small fee, that according to them, is much cheaper than betting with a rake in the long run.
This is of interest to sports bettors because reducing marginal loss is very important. If instead of betting at rake odds, one could simply pay a small fee and have your bets matched. One’s bankroll could see significant benefits.
The second major thing ZenSports is doing is issuing its own cryptocurrency, called Sports. Bettors can use this cryptocurrency to make bets on the ZenSports app, and if they do, the fee charged will be smaller.
This further reduces the strain on a given bettor’s bankroll, if they were to use this app.
Unfortunately, the full functionality of the app is not available in the United States yet. The ZenSports App in the United States does not allow this type of play yet and offers only some Daily Fantasy contests.
However, ZenSports is looking to move into the United States market in a few states by the end of 2020.
Of course, the COVID-19 pandemic outbreak throws a wrench into these plans, as it has done with many plans. No matter when ZenSports makes the jump stateside, bettors should be aware of the potential upsides and downsides of this new method of peer to peer sports betting.