🖥️Protocol Business Model

SportKings offers players two types of contests;

Buy-in Tournaments

Where players pay an entry fee to participate.

For buy-in tournaments, players pay a uniform entry fee to participate. On the other hand, players can participate in Predict-to-Earn tournaments absolutely free of charge.

All tournaments are currently hosted on the Polygon network.However, to promote inclusion and easier accessibility of the SportKings game, we are planning tournaments across different Blockchain networks.

The rake and prizes of the competitions are paid in SKNG Token.

Predict to Earn Tournaments

Players can join organized tournaments completely free of charge and earn SKNG tokens.In support of decentralization, SportKings will organize free tournaments for the community and distribute SKNG tokens to the winners.

Tournaments that are free for players to take part in.

A portion of the entry fees paid by players for buy-in tournaments goes towards the prize pool. A part of the entry fees is constituted of the rake. It is this rake that serves as the profit for SportKings.

On the other hand, Predict to Earn tournaments are funded by SportKings and offer SKNG tokens as a reward to the winners.

Example

A practical example of how the protocol works is as described below;

Nick is a good tipster and he is tired of bookies limiting him because of his skills. On the other hand, Bob has skills and winning bets, but he has no control over his losses every day. As such, Bob is a long term losing player.

Nikki and Bob decide to visit DAPP SportKings and enter one of the tournaments.The tournament is a "Classic bookmaker" where players compete against each other and make predictions of real odds for Saturday matches including those of the top 5 leagues in England, Spain, Italy, France and Germany.

The tournament has a buy-in of 1000 SKNG tokens + 100 SKNG rake fee (The 100 SKNG tokens rake is profit for the protocol ) and a maximum number of participants of 1000. Each player pays an entry fee in the form of a SKNG tokens which is how the prize pool for the tournament is formed. The funds for the prize pool are securely locked in a smart contract.

Rake Model

SportKings gets rake fees similar to a poker business. In SportKings, contests are player-versus-player games and unlike in the case of a traditional bookmaker, the house does not wager against its players.

As such, the rake fee is the principal mechanism of generating revenue for the SportKings protocol. When the game begins, all players have an equal chance at winning because the odds are the same for every player in the contest.

The game is a sports prediction gaming. That is to say, players do not bet real money but rather points in the form of chips. Each player receives an equal number of chips at the start of the tournament (1000 points).

Each player's predictions are recorded in the Blockchain, effectively making all participants' predictions publically visible. In turn, that makes the tournament 100% transparent.

To make a prediction, the player must confirm the transaction in his wallet. After the last match of the tournament, a ranking is formed according to which the prize fund is distributed. Similar to poker tournaments, the player with the most chips is crowned the winner.

The money collected for the prize fund with 1000 participants and an entry of 100 SKNG tokens is equal to 100,000 SKNG which is distributed 100% among the participants. At 10 SKNG rake for 1000 entrants, Sportkings will collect 10,000 SKNG in rake.

A Sample Distribution of the Prize Pool:

1st— 35 000

2nd— 20 000

3rd— 10 000

4th— 5 000

5-10— 2 000

11-20— 1000

So in the worst case, Bob knows exactly how much he will lose (the entry to the tournament ), but he will have had fun placing a large number of bets throughout the day without worrying about uncontrollable losses.

Nicky, on the other hand, will use all his skills to win the Contest and won't worry about being limited or treated like a cheater. It is a perfect win-win situation where both the winner and the loser have maximum fun.