The Kentucky Derby seems like a timeless horse racing tradition. This weekend, a large crowd dressed to the nines will be drawn to Churchill Downs in Louisville, Ky., and many others will be watching and betting on races from casinos and racetracks around the country. And this year, the race will be wagered on with a more modern innovation: cryptocurrencies.

According to US Racing, the use of Bitcoin and other such currencies is increasing among bettors on horse racing.

“Right now, while punters are limited to a handful of private international gaming companies that will accept deposits with cryptocurrency, players with crypto wallets can use Bitcoin, Bitcoin Cash or Litecoin to make a deposit and bet on the Kentucky Derby,” said Tim Maxwell, US Racing’s operations director, in a statement.

Maxwell added that while the crypto-betting trend is clearly on the rise, the use of cryptocurrencies is still very early in its adoption, Some financial institutions and betting companies aren’t yet ready to accept blockchain-based payments.

Though not among the currencies that can be used to bet on horse races this weekend, another cryptocurrency called Ether is hoping to join in the fun. A startup called Ethorse has developed a game that works similar to horse racing, but instead of betting Ether on real horses, you bet on other cryptocurrencies.

SportTechie Takeaway

The fact that cryptocurrencies are permeating even the most traditional events like the Run for the Roses is perhaps not surprising. But what is interesting are the potential ramifications of accepting blockchain-based currencies. One particular aspect of crypto-betting that could lead to hesitancy in its adoption is the volatility of such currencies. A typical $2 bet made—and paid out—in Bitcoin could gain or lose value the moment it’s placed, leading to potential wins or losses for betting companies regardless of the result of the race.

At a time when larger questions are being asked about the role and potential widespread acceptance of sports betting, adding cryptocurrencies to that mix poses additional dilemmas. While cryptocurrency payments are becoming more accepted in mainstream culture, their role in financial situations is still very unclear.