Quick question. When I make a deposit or a withdrawal at major bookmakers like BetOnline or Bovada, I am quoted a bitcoin price but they never tell me where they are getting this price. Are they plucking it out of their ass, is it the Coinbase price or what?
According to the 5Dimes site = "The average of the current Bid and Ask prices from bitpay or other bitcoin exchange services, will be used for all currency conversions with USD at the time the deposit is processed."
I think most crypto sportsbooks and gambling sites use third party payment processors. Anytime there is delay with withdrawals from 5Dimes or Bovada they blame their payment processor so I guess the price you get will depend on which exchange the payment processor is using.
If the average gambler gets his/her Coinbase, Bitstamp or Cash App account closed for buying or selling bitcoin for gambling then I doubt any of the major sportsbooks would be allowed to use regular exchanges. The volume of buying and selling would immediately trigger suspicion. There must be shady bitcoin exchanges outside of Europe and the United States who are happy to take the business of casinos, poker rooms and sportsbooks. There might also be a huge over the counter market (OTC) where offshore gambling sites are able to sell their bitcoin to wealthy investors who want to buy large amounts without moving the price.