The influence of blockchain on sports fan engagement

One of the biggest driving forces today in popular culture is sports. It is almost impossible that you will find someone who doesn’t love sports. Not necessarily playing but just watching: from extreme sports to track and field to indoor games. In fact, the sports market has been increasing at a high rate, with Statista projecting that it will grow at a CAGR of 8.23% between 2022 and 2029. The Sports Global Market Report 2024 shows that the market is expected to reach $629.81 billion by 2028. You can be sure that that’s a huge amount.

Now, blockchain has come into the playing field to make fan engagement even better. Currently, the potential of this technology is still largely untapped, but you can imagine what it has done already. Big sports organizations globally are taking notice of various blockchain systems, like the Ethereum blockchain. Well, they are doing this in order to improve fan engagement, improve the already existing operations, and enhance revenue models.

In this article, we will be looking at how fan engagement has become a beneficiary of blockchain technology.

Online sports betting made more efficient

It’s quite evident that the online sports betting industry is among the fastest-growing industries today. Actually, according to Statista, the revenue accrued by this industry is expected to reach $45.18 billion by the end of 2024. More people are getting to enjoy the betting experience, and one technology we can thank for that is blockchain. Making payments in the betting industry has never been better.

But why would this be the case? You see, there are many crypto sports betting sites that are coming up, and all scream one thing: efficiency. With crypto, you have a better experience than conventional payment methods. We are talking about faster speeds, better security and privacy, lower transaction costs, universal acceptance, and many more. For instance, the average time taken to send Bitcoin is just 10 minutes. Now, compare that to bank transfers that take up to five days to receive your winnings if it’s an international transaction.

Well, in 2021, the gross gaming revenue for sports betting accrued by crypto only accounted for 8.5%. Now, a report by TechReport revealed that the crypto bet sum between 2022 and 2023 grew by more than 20%, and the crypto bet increased by 50%. How crazy is that!

Fan tokens

This is another innovation by blockchain that offers a good mix of fan engagement, influence and investments. These tokens give fans a greater sense of involvement as they give them the ability to participate in some decision-making processes of their favorite teams. Which fan does not have to have an active participatory role in the affairs of their beloved sports team?

These tokens are operated through a partnership with crypto platforms. Once you hold these assets, you are able to access exclusive rewards, experiences, and, best of all, voting rights on club decisions. Now, fans are not just passive spectators; they are gaining deeper connections with the organizations they support.

One good example of how this is happening is the blockchain-based platform Socios.com. On September 18, 2024, the company extended its partnership with the Seria A league for three more years. This collaboration, which started in 2021, allows supporters to buy match balls. In the last two seasons, Fan Token holders have claimed 188 match balls, and this season is aiming higher, with 100 matches in play.  The CEO of Lega Serie A said that they are planning to give more goal balls and other unique and original items to fans.

Fan tokens have been a success in the past few years. After its launch, Socios.com reported that in 2021 alone, the platform has already garnered over 1.2 million registered users and made sales of more than $150 million. You can be sure that this is just the beginning.

Authentication of Memorabilia

One thing that blockchain is working to counter is the challenge of counterfeit memorabilia. As stated above, the CEO of Serie A said that by using the blockchain platform, they were aiming to give unique and original items. With the blockchain, each piece of sports memorabilia is assigned a unique digital authenticity certificate which records important details concerning the piece. The information is then stored on the blockchain.

Now, whenever a transaction concerning the memorabilia happens, it is recorded on the blockchain. With these, you are able to track the authenticity of the item from all the owners before you can make a purchase. Blockchain technology also ensures that all the information is easily accessible to anyone and that anyone can verify it. This, in turn, reduces the risk of fraud in the market.

A good example of this tech in use is collectID. This platform equips products with secure NFC tags containing information that changes with every interaction. This makes it impossible to duplicate any information, ensuring the authenticity of items.

In conclusion

The sports industry has improved their game by incorporating blockchain technology into their systems. The innovation carried by blockchain platforms ensures that the fans of different sports are getting their best ever experience without having to worry about security.