Blockchain Technology: Applications in Sports
Today’s digital age means the sports industry is ever-evolving, making it crucial for those working here to keep an eye on key trends heading into 2025. A KPMG US report notes that the industry particularly needs to improve how it manages athletes as more private equity investments influence major leagues like the NFL, accommodate the rising popularity of online sports betting—which earned over $14 billion in 2024, a 30% increase from 2023—and look for ways to enhance fan engagement, especially as more sports enthusiasts seek personalized experiences.
Blockchain technology may hold the solutions the sports industry needs to address these trends. With the US’ Trump administration promoting its widespread acceptance, experts speaking at the World Economic Forum-hosted Crypto at a Crossroads session believe that the blockchain’s use cases will become more readily available to a wider range of industries.
As a result, these experts believe that decentralized blockchain technologies are set to experience a revival this year. If the sports industry takes advantage of that, it can reap the following benefits to not just thrive, but flourish in the year ahead.
Smart contracts for athlete management
In our post The Better Choice, we defined the smart contract as a definite pro of crypto adoption over traditional banking. Hosted on the blockchain, it’s designed to automatically execute the provisions it contains, eliminating the need for human intervention. Due to the decentralized nature of the blockchain, the smart contract is also readily available to all signatories while remaining tamper-proof. In the sports industry, smart contracts can be used to improve athlete management.
As illustrated by the features in the ATLETA Network, the first blockchain platform customized for the sports industry’s needs, smart contract creation can streamline processes like athlete signing, transfers, payment, and overall management. They can also empower athletes by giving them more control over the ownership of their data and who they choose to share it with. In the process, smart contracts can help organizations and athletes avoid paying the third-party fees that come with contract disputes, as well as prevent compensation delays. When leveraged through all-in-one smart contract ecosystems like ATLETA, sports organizations can further improve financial operations and transparency—which can be crucial if they’re looking to attract more private equity investments.
Cryptocurrency transactions for sports betting
Many Americans participate in sports betting to make watching games more enjoyable, and online platforms are making them more accessible and convenient than ever. However, online sports betting does come with its own challenges, including the need to facilitate secure transactions while catering to bettor demand for private and seamless deposits and withdrawals. By accepting cryptocurrencies hosted on decentralized blockchain networks, online sports betting providers can check all those boxes.
Wagers made on the NBA can make for a great case study here, as data from Statista shows that basketball is the most popular sport among American bettors. The crypto-only platform Thunderpick meets that demand by facilitating NBA betting—and improves the experience by accepting a diverse range of tokens, from popular ones like Bitcoin and Ethereum to more niche ones like Tether. Regardless of whether they opt to try Live Mode or place futures bets, users following teams like the Cleveland Cavaliers and Boston Celtics can deposit and withdraw cryptocurrencies to benefit from faster, more secure, and even anonymous transactions. Such blockchain-savvy features can help the sports industry better take advantage of online sports betting’s growing popularity.
Credit: @france_fantoken on Instagram
Fan tokens for fan engagement
Though the sports industry continues to remain vibrant, the same may not be true for its fan base as it ages. According to insights from Rocca Creative Thinking Limited, the popularity of alternative forms of entertainment and frequent athlete transfers between teams means fans no longer connect with sports personalities, and both TV viewership and match attendance are on the decline. With this in mind, the sports industry may find it helpful to adopt another facet of blockchain technology specifically designed for it: fan tokens.
In essence, fan tokens are digital assets customized for a sports organization and hosted on the blockchain. As seen in the offerings from Socios, which has launched fan tokens for major soccer teams like Real Madrid and is a global partner for UEFA licensing, they essentially make the fan experience more interactive. Token owners have a say in how their chosen organization is run, such as by deciding on new jersey designs, and they can potentially unlock exclusive perks like access to VIP sports events. Through its UEFA partnership, for example, Socios awards soccer fans with VIP fan token experiences like HQ visits and meet-and-greets. With these benefits in mind, fan tokens may be the solution the sports industry needs to revitalize its fan bases.
