The topic of blockchain and cryptocurrency has seen an upswing in the news in the past few weeks, if not months: Most recently, the investment in the billions in the cryptocurrency Bitcoin, which was made by Tesla boss Elon Musk. But now we have news from the German-speaking area from the world of blockchain.
Novomatic subsidiary and iGaming software developer Greentube dares to break new ground and is now trying to take its first steps in the esports business with the takeover of HERO, a blockchain-based esports betting provider. The company itself announced this in a press release. Nothing is known about the purchase price for the complete takeover of HERO.
HERO is still a bit of a company in its infancy, the start-up, like Greentube, is based in Vienna and already has a considerable user base of around 300,000 players. The HERO network is no longer only used for e-sports, but also for poker systems or other forms of betting. According to the Austrian E-Sport Association (ESVÖ), there are currently 50,000 registered e-athletes in Austria.
Greentube apparently recognized the potential of the e-sports platform early on and hit it.
What exactly is HERO?
The special thing about the Viennese start-up is that it offers e-sports betting via blockchain technology. In short, this means that users can use blockchain to create their own bets on the outcome of online competitions.
The company worked on this project for years and started in June 2018 with the HEROcoin crypto token on the Herosphere platform. The HEROcoin is considered HERO’s crypto currency and is intended to provide increased transparency in the game with the intention that every provider can integrate the token into their system.
Since 2017, the crypto currency HEROcoin can be bought and used when betting on the esports events. As a result, HERO generated $ 2 million in 2018.
For a long time HERO was not suitable for the masses, but it was constantly being worked on. Users can create their own esports competitions through the site and bet on results.
The aim is to get through as an intermediary at e-sports events without the bookie. This is another special feature of HERO, as there is always an intermediary bookmaker with classic esports betting. HERO’s platform can best be compared to a betting exchange. At the moment, players have the option to choose between Dota 2, League of Legends and Counter-Strike and to create competitions.
But that’s not enough of the special features of HERO: Players can bet on the crypto currency Ethereum Blockchain.
According to Paul Polterauer, CEO and co-founder of HERO, the main aim of the company is to put more emphasis on the community and groundbreaking betting technologies. Due to the influence of the social component and blockchain technology, a small revolution in the betting market is imminent. HERO is of the opinion that traditional betting systems often lack transparency and trust. This needs to be changed.
E-sports betting platforms, which enable their users to bet among themselves without a bookmaker, are currently very popular in Germany. In addition to HERO, the start-up Gaming Stars from Berlin is also a company offering such e-sports betting. What is the business model behind it? In the case of Gaming Stars, users pay between 1 and 25 euros for each competition.
Greentube and the German gambling market
Although the gaming group Novomatic withdrew its entire range of online games from the German market in 2017 due to the somewhat complex legislation, the online casino StarGames from Greentube returned about a year later due to the granting of a license from Schleswig -Holstein back in the state. Novomatic classics such as Sizzling Hot and Book of Ra are therefore only available to customers from Schleswig-Holstein. While Greentube Malta wants to apply for a Germany-wide gaming license for its online casino StarGames, Greentube is also trying to get a Maltese gaming license for StarGames Casino.
A new chapter for Greentube
As mentioned at the beginning, e-sports has never really been an issue for the Novomatic subsidiary. With HERO, Greentube is now entering the promising new territory of e-sports and crypto. Greentube naturally sees it as a strategic move to supplement its product portfolio with an esports offering and to ensure more diversification. This gives the opportunity for more growth. But HERO also takes its takeover under the name Greentube as a success and proof of the hard work that has gone into the development of HERO and looks forward to the cooperation.