Derby Jackpot is now Accepting Bitcoins

Cryptocurrencies and horse racing betting is a combination nobody would have imagined just a few years ago. The horse racing industry has fought to shed the “old timers” stereotype of horse handicappers by expanding its presence to the internet and marketing to younger, internet-savvy users. Meanwhile, cryptocurrencies like Bitcoin fall in the province of exactly that demographic.

Earlier this week, DerbyJackpot.com became the first US-legal online betting site to accept real money Bitcoin deposits. This is great news for Bitcoin enthusiasts and privacy minded gamblers alike. Now instead of depositing with your credit card or PayPal account, you can fund your horse handicapping through anonymous Bitcoin deposits.

It makes sense that Derby Jackpot would be the first horse racing site to go live with Bitcoins. The site markets itself to casual horseplayers with wagering options that resemble slot machines more than actual racing bets. Basically, it looks and feels like spinning the reels of a slot but every wager derives from a real horse race.

What is Bitcoin?

The easiest way to explain Bitcoin would be to call it a decentralized digital currency. It was unveiled to the world in 2009 by a person going by the name Satoshi Nakamoto. Although it is debatable as to whether or not Bitcoin is truly anonymous, many consider it a more private form of payment when compared to credit cards, PayPal and other traditional payment methods.

Additionally, Bitcoin cuts out the middlemen by facilitating secure payments directly between purchasers and sellers. There’s also no central regulatory agency, no government controls the supply and fees are optional. These advantages have helped propel Bitcoin from obscurity to something that has caught the attention of both consumers and governments around the world.

Anyways, that’s my very basic explanation of how Bitcoin works. There’s a whole lot more to it than that, but that’s the general gist of it all.

Why is this newsworthy?

The early days of Bitcoin were fraught with uncertainty. It was an unproven payment method considered by many to be a novelty more than anything serious. It also went through a period fo time being associated with shady, underground transactions between buyers and sellers desiring complete anonymity.

It is therefore always good news for the Bitcoin community when a “legitimate” institution joins the Bitcoin bandwagon. At one point, Bitcoin was only accepted by offshore gaming sites operating under questionable legal authority. Derby Jackpot’s foray into Bitcoin marks an important milestone for the legal and regulated US betting industry.

If you’re not too keen on giving your private banking information to online betting sites, Bitcoin serves as a great new alternative. Bitcoin deposits to Derby Jackpot require no credit card number, PayPal information or private banking details. Plus, transactions are instant and free.

Does this mean I can bet on horses anonymously?

Not quite. DerbyJackpot.com still requires your real information when you sign up for an account. Legal US betting sites are required to collect your real identity and address to ensure you live in a state where online horse racing betting is permitted. They’ll still know who you are when you fund your account with Bitcoin.

How to Deposit with Bitcoin

Bitcoin is a whole new type of currency so there’s a bit of a setup process. Once you have all the basics in place, you’ll find it easy to make and receive Bitcoin payments. Here’s what you need to do if you’d like to give it a shot on Derby Jackpot.

Get a Bitcoin wallet

Your wallet acts as a secure location to “store” your Bitcoins. Wallets can be stored on your computer (make sure you back up your hard drive!), they can exist online sort of like PayPal or they can even exist offline through the use of “cold storage” wallets that exist on USB devices not connected to the internet.

For simplicity’s sake, you can start with the popular Coinbase wallet. This wallet exists online and uses a combination of AES-256 encryption, SSL connections and 2-step verification to make sure only you have access to your wallet. Setting it up is as easy as visiting Coinbase.com and signing up for an account.

Acquire Bitcoins

The next step is to acquire your Bitcoins. Somehow, you need to exchange that old-fashioned currency for virtual Bitcoins. Again, we’ll refer to Coinbase. Once you have a Coinbase wallet, you can connect your bank account to Coinbase to quickly purchase Bitcoins with real funds. Any Bitcoins you purchase are stored in your wallet.

Make a Deposit at Derby Jackpot

The last step is to fund your Derby Jackpot account. Click on “add funds,” choose an amount and then select “Bitcoin” as your deposit method.

Here’s what the Bitcoin deposit screen looks like:

The payment can be completed by opening your Bitcoin wallet and entering the payment address displayed on the Derby Jackpot deposit screen. If you have a Bitcoin app on your smartphone, you can also just scan the QR code to complete the payment. The appropriate number of Bitcoins will then be sent to Derby Jackpot and converted to US dollars for your betting pleasure.