The value of non-fungible token (NFT) transactions will double next year, based on an investigation from the professional services company Deloitte. The group also predicted that, by the end of 2022, four to five million sports fans globally will have purchased or been gifted an NFT sports collectible. Interest in sports NFTs is likely to be encouraged by activity in the wider NFT market, including that for digital art, which has seen its top five most valuable sales generate more than USD 100 million by August 2021.
Deloitte expects platforms and rights creators to continue testing different ownership models to determine the optimal balance of fueling consumer demand and maintaining intellectual property rights (IPR) that respect existing third-party rights over the underlying digital assets. The report states that, so far, the offer of limited IPR within sports NFTs has not reduced people’s appetite, suggesting that demand may well be driven by the ability to demonstrate status. According to the study, the most common and lucrative application of NFTs in the sports industry will likely be the sale of limited edition video clips of sporting moments or player cards. The value of each NFT will depend on the prominence of the athlete, the significance of the event, any additional content included within the NFT, and demand. This research underlined that French soccer’s largest NFT platform Sorare enabled USD 128 million in sales in the first nine months of this year.
SPORTS, GAMBLING AND FANS
In this sense, in September 2021, Sorare announced that it had raised significant capital (USD 680 million) for its daily fantasy football (soccer) platform. What makes this new format unique is the use of NFTs in conjunction with fantasy sports and blockchain technology to track transactions within the fantasy league. About this gambling segment, Allied Market Research said DFS will reach USD 48.6 billion by 2027, a CAGR of 13.9% from 2021 to 2027.
In 2021, NFTs have taken an all-star role in fantasy sports, with companies making millions by issuing new cards on their platforms. These companies use blockchain technology distributed across thousands of computers around the world to record who owns which ‘cards’ and ensure that all purchases and sales are accurate and transparent. It is important to note, by using NFTs as prizes, gambling firms are able to diversify games, and have them appeal to a whole new demographic. It allows companies to market their games in more specific and even sophisticated ways, as they are offering something more distinct than mere cash.
While gambling with digital assets has been around for some time, it is only recently we are seeing NFT integration. One possible avenue for this would be NFT gambling focused on sports card collectibles. The sports betting landscape is huge, as are digital sporting collectibles. The NFT market could certainly capitalize on this and design gambling projects aimed specifically at sports enthusiasts.
Another fascinating avenue is the metaverse landscape. Metaverse NFTs are a growing subcategory of digital collectibles. Projects like these add a whole new dimension to the gambling discussion. While metaverses are still relatively niche, they are sure to increase its popularity as interactive realities become more immersive. Besides, creating virtual casinos could be a way to spread NFTs globally. It would not be surprising to find NFTs dominating this space in the next few years, and this could even be in large part due to gambling games and opportunities.