Monthly Archives: June 2022

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The history of gambling in Africa is an interesting one. Ancient Africans played many games of chance. Ancient Egyptians played dice, and in many parts of Africa, horse racing was a common practice. In fact, in different African cultural contexts, destiny or luck remains a crucial success factor.

Africa may not be a common site for casinos as you have in Monte Carlo, Singapore, Vegas, and other parts of the world today. Still, Africa is an emerging gambling market that enjoys large youth patronage.

Most of the current gambling in Africa exists in the form of sports betting and virtual bet opportunities. Africa may not be one of the most popular gambling enclaves. Still, the growth of sports betting in Africa suggests that it is not a new development on the continent.

To understand Africas history and relationship with gambling, it is essential to look at the makeup of Africa. The 54-nation continent is made of many different parts. To the North of Africa, we have Africans of Arab extraction whose predominant religion is Islam.

The western part of Africa features a mixture of Christianity, Islam, and the traditional African Religions. However, it is still largely dominated by Islam. Central Africa also shares a mixture of religions with West Africa. The same extends towards South Africa, where more people practice the traditional African religion.

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The emphasis on religion is important because most Africans have substituted their original cultures for the culture of their religions. From a broader perspective, when the religions of Islam and Christianity came to Africa, many Africans dropped their cultural practices for the religions. Over time, they began to practice the cultures of their chosen religion.

You may be wondering why it is important to explain these religious contexts. In many parts of North Africa, especially in countries where Islam is a major religion, gambling is prohibited based on religious tenets. So, while some form of gambling was a part of African history, the advent of foreign religions contributed in no small way to the reduced patronage of gambling on the continent over the years.

Today, African society is embracing more liberal practices, especially in countries with multiple religions. The problem of poverty is also a considerable challenge that many young people in Africa are facing. As a result, gambling began to gain prominence in the 90s gradually.

Now, Africa is the largest continent, with sports betting shops, lotteries, and online casinos continuing to spring up on the continent every other day.

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The evolution of gambling in Africa has taken different forms in different locations. Sports betting shops and online casinos are popping up from every angle, but how did Africa get to this point in gambling?

Currently, Africas largest gambling market is in South Africa. South Africas leading industry features prominent bookmakers running physical casinos alongside other online and offline gambling options. Betting in South Africa had passed through many cycles with several legal challenges until after Apartheid in 1994, when the South African government legalized all forms of gambling. This was followed by a detailed gambling act and a well-defined lottery and casino system that served as the blueprint for most countries in Africa.

Nigeria has the next largest gambling market in Africa, but gambling regulations in Nigeria are sloppy. Today, Nigeria is a fertile market for lotteries and online sports betting. Casinos are not common because the available ones are reserved for rich patrons. Still, there are a lot of online casinos operating in Nigeria and other African locations.

The success enjoyed by lotteries draws its roots from pool betting, which thrived in the 90s and early 2000s. Nigeria, however, is facing a problem of several illegal betting platforms and practices even though there is a National Lottery Regulatory Commission that was set up to curtail illegal practices.

Kenya is another vibrant gambling market in Africa with several gambling platforms ranging from horse racing to casino gaming and sports betting, mostly on foreign platforms. Kenya also has a Board in charge of betting, which carries out periodic checks on the gambling practices in the country.

Egypt is the biggest gambling spot in North Africa. Gambling in Egypt is well regulated, with periodic checks on gambling facilities, including casinos.

Africas relationship with gambling is still evolving. African gambling is not yet on the level of gambling in other parts of the world. Still, it has progressed significantly in a short time. The problems of poor regulation must be addressed and tackled headlong to deliver a bright future for African gambling.

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The Evolution of Gambling in Africa - Africa Feeds

This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.

Kate Linebaugh: If you've been watching the NBA playoffs, you've probably heard an ad like this one.

Charles Barkley: Let's say you win the first game of your parlay, and you're not sure about bet number two.

Speaker 3: Hey, come on, man.

Kate Linebaugh: That's NBA legend, Charles Barkley, doing an ad for the sports betting company, FanDuel, one of several online gambling companies sports fans use to place bets

Charles Barkley: With FanDuel, you can cash out right there and then, and let the voice in your head think about something else.

Speaker 3: Hey, what would you rather have?

Kate Linebaugh: The online sports betting industry is growing quickly, so quickly that sports networks like ESPN have even created entire shows around it.

Doug Kezirian: Welcome into Daily Wager. I am Doug Kezirian. We'll be with you for the next hour right here on ESPN News and we'll bring you the latest developments in the betting world, roster changes, line moves, analysis.

Kate Linebaugh: More than a dozen states have legalized online sports betting in the last few years. And that's because in 2018, the Supreme Court repealed something called PASPA.

Amy Howe: It was the Professional Amateur Sports Protection Act and effectively what it said is that there was a federal ban on online sports betting, and in 2018, the Supreme Court repealed that and they said each state can decide if they want to legalize online mobile sports betting.

Kate Linebaugh: That's Amy Howe, the CEO of FanDuel. She took over the company last year and it's a job that comes with a lot of challenges. There are concerns that companies like FanDuel could fuel gambling addiction. And some fans think that being able to place bets from your phone is changing how we watch sports entirely.I spoke with Amy Howe about these issues and how her company is trying to make sports betting mainstream. Welcome to The Journal, our show about money, business, and power. I'm Kate Linebaugh. It's Tuesday, June 7th. Coming up on the show, FanDuel's CEO on how to win big in the changing landscape of legal sports gambling. All right. So let's dig in with the tough questions. What's your favorite sport to watch?

Amy Howe: For me, personally, I think football. Partly because my boys are so into it, but I grew up in Buffalo, New York. I'm a huge Buffalo Bills-

Kate Linebaugh: Oh man.

Amy Howe: -fan.

Kate Linebaugh: No way. I grew up in Rochester.

Amy Howe: Oh, you did?

Kate Linebaugh: Yes. Yeah.

Amy Howe: So, so we must have that same bond, and I don't know if you were as devastated as I was when the Bills lost to the Kansas City Chiefs this year, but-

Kate Linebaugh: Weren't they robbed?

Amy Howe: Yeah, they were. And you know they changed the overtime rule after that.

Kate Linebaugh: Yes, I do.

Amy Howe: Yeah.

Kate Linebaugh: What about the NBA finals? Who's your money on? The Celtics or the Warriors?

Amy Howe: Oh, I'd like to see, as much as the fact that I live in the state of California, I'd kind of like to see the Celtics win.

Kate Linebaugh: Old school?

Amy Howe: Little bit.

Kate Linebaugh: Okay.

Amy Howe: Little bit. Yeah.

Kate Linebaugh: Yeah, yeah. Amy joined FanDuel in February last year. She came over from Ticketmaster.But, sort of like cigarettes or alcohol, gambling is traditionally considered a vice. How did you think about that as you went into this job?

Amy Howe: I think the way I thought about it was gambling is happening already. It's been happening for decades, whether we want to admit it or not. There's a massive illegal black market out there. And so, I knew the trends from a regulatory perspective. I felt like I could bring all the pattern recognition and history that I had from Ticketmaster, but also really help lead the industry and our company in a way that contributes to the viability of the business longer term.

Kate Linebaugh: States are legalizing gambling, but it's not widespread yet. What are the challenges in navigating this nascent regulatory landscape?

Amy Howe: I mean, first of all, from the outside you may think it's a very organic process for states to legalize. I can tell you it's not as straightforward as it looks. We have a regulatory team that's working state by state with a number of different-

Kate Linebaugh: Lobbying.

Amy Howe: Lobbying, that's exactly right. So we were able to use a lot of those lobbyists and a lot of that pattern recognition when PASPA was repealed to help open up the states. But there's no single state that looks the same. The path to legalizing in New Jersey is very different than Connecticut versus Arizona. And so there's a lot of art and science in how you do that. I think at the end of the day comes down to a couple of core arguments, which is by legalizing, we're doing two things. You're protecting consumers from illicit operators who don't have the same standards that I do as the operator of FanDuel, but you're also economically benefiting the states. All of that money would be going to illicit operators. So the arguments are quite compelling, but the path to get there can look very different state by state.

Kate Linebaugh: Do you think there are some states that won't ever pass it?

Amy Howe: Yeah, I think it's going to be, well, if you're asking are we going to see a world where all 50 states legalize? I think that's going to be a very long time. You and I may not see that. I think that there's still a tremendous amount of momentum, so we're not even close to seeing the headway that we ultimately will see, but I think it's going to be a long time before you see all 50 states legalize.

Kate Linebaugh: And one of the reasons some states resist legalizing has to do with worries around gambling addiction. How do you respond to concerns that FanDuel and your competitors are fueling more addictive behavior?

Amy Howe: Yeah, it's a great question. And listen, Kate, I am so proud of what we're doing on this front. And I'll tell you as right now as the number one mobile gaming operator, it is by far one of the most important priorities. But if you look at my organization, I have a risk and compliance team of well over 150 people that are just focused on monitoring risky play and making sure we're not seeing any abuse around anti-money laundering. But most importantly, there's a lot of what we're doing around how we build our tools and products to let consumers set wager limits and deposit limits, and if they're really struggling to block some of these sites, so tons of investments, and it's endemic to what we do.

Kate Linebaugh: But isn't that a tension? Like part of your business is fueled by the addictive quality to it, by the excitement of winning. And yet you're also being called on to turn that off for some people. Can you talk about balancing that tension?

Amy Howe: Yeah. I mean, listen, we don't think of it as fueling addictive personalities. What we think of it is as if you look at a consumer data on this, 90% of consumers view betting as a form of entertainment. They view it and they do it because if you take sports betting as an example, it enhances the experience. When you're engaged in the, not just the outcome of the event, but take the Super Bowl. We had Pat McAfee had a four leg, same game, parlay. We had a quarter of a million users that were quote unquote riding along on that same game parlay. So it just makes the overall event more interesting. So it's not about fueling addictive behavior. It's about making sure that we can deliver a great entertaining experience, but keep it within your limits. And every consumer has different limits based on both their own preferences and their profile.

Kate Linebaugh: And how do you think about minors in particular? Managing concerns that legal online gambling could introduce more young people to gambling at a young age.

Amy Howe: There's a few things that we're do. Some we have to do. All customers provide Social Security number, date of birth, and our system effectively matches that data up against a third party to fully verify that individual before they're ever allowed to place a bet legally. So that's the first thing. And I will tell you, I mean, I look at the data all the time, but there are a lot of consumers that never make it all the way through that process. So it's important for everybody to know that. And I think a lot of that is not well understood.And then, the other thing we are very cautious of is we don't want FanDuel to be promoting college sports in the sense that I don't want, obviously we take bets on college basketball and college football, but I don't want a FanDuel logo to be showing up on a college football jersey or a basketball jersey. There's certain lines that we will draw around how we promote our brand that I think are important, at least for our company, in terms of how we want to position our brand in the marketplace.

Kate Linebaugh: Coming up, FanDuel's CEO answers the question, does the house always win?Something that you've been outspoken about is trying to bring more women into online sports gambling. Why is that important to you?

Amy Howe: Yeah, well, listen, this is something that I felt strongly about at Ticketmaster and I go back to when I went to one of my very first sports industry events and I walked into the conference room and it was literally a sea of men, a sea of white men, mostly, but it was a sea of men. And I thought to myself, "Gosh, we have a lot of work to do as an industry around not just gender diversity, but diversity in general."And so part of why I'm so passionate about advocating for women in sports betting is for a couple of reasons. One is, if you look at the data, almost 50% of sports fans are women. It's not that women don't like sports. It's just that so far, we haven't made it that accessible to women. Somewhere between 15 to 20% of sports betters are women. And so you just look at that, inherently you know there's an opportunity there.

Kate Linebaugh: But it can also be dangerous. Like how do you think about exposing new demographics to gambling?

Amy Howe: Well, we have objectives. It doesn't matter what your demographic is, in the first 30 days of having a new customer on our platform, where we have to reach you with certain responsible gaming messaging, introduce you to the tools we have, and so part of there's three metrics that our organization is held accountable to. And one of them is how we think about new users on the platform, so it doesn't matter if you're a male or a female or a 21 year old or a 50 year old. We have to expose you to some of this messaging and training early on.

Kate Linebaugh: How are you trying to get more women into sports gambling?

Amy Howe: It's a great question. And, listen, I think the word trying is important, because there is an element of experimentation and test and learn. We were actually one of the first to take bets on women's March Madness, couple years ago. And this year we saw there were well over a million bets placed on women's March Madness, which is a big movement from the previous year. So I think part of it is we are sponsoring those organizations and trying to advocate for those athletes.In terms of how we reach the female audience there's a couple things that we're experimenting with. One is we created a product, it was actually a fantasy sports product with a gist where it was for women by women, and as I said, it was kind of this community aspect to it.

Kate Linebaugh: Was it pink?

Amy Howe: No, it wasn't pink.

Kate Linebaugh: Oh, good.

Amy Howe: Good Lord. So we were trying to tap into that insight that if you bring women together in a community and leverage a product that is consumable for them. So that was kind of an interesting experiment.

Kate Linebaugh: How do you think about how the ability to legally bet on sports is changing sports?

Amy Howe: Yeah. It's changing it quite a bit. If you look at, we did some research with our NFL and NBA consumers in particular, and those users are 75 to 80% more likely to watch the game if they're betting on the game as well. And, again, it's not just about who's going to win, what's the over/under, but it's the engagement during the event itself, it's betting on the parlay and same game parlay products that just makes it much more engaging. It's changing live sports in a way that you wouldn't have seen a few years ago and it's legitimizing it. When you have the biggest leagues in the world, the NFL, the NBA, that are partnering up with us in figuring out how they use sports betting to enhance and evolve their product, it's become a part of mainstream sports and culture. It's fun to see just how quickly that part is changing.

Kate Linebaugh: But the thing that non-gamblers like myself think is that the house always wins.

Amy Howe: That's not true. If that were true, we wouldn't have many consumers back. No, in fact, there are many weeks where, listen, we joke about it, but we call them punter friendly weeks. There are many weeks where we may lose quite a bit of money because the consumers won. And we want that. We want consumers engaged. But if you're constantly coming to a sports betting platform and you lose every time, that's not a very gratifying experience either.

Kate Linebaugh: Right. But I thought the whole thing is like you can win a little, you can win a little, you got to let some people win, but overall you need results.

Amy Howe: Well, but even though we have lots of great data and models and pattern recognition around how the lines are set and what the odds are for any given bet. You're a sports fan. You watch things. And there's a lot of very unpredictable things that happen in the sports world.

Kate Linebaugh: Let's talk about the Kentucky Derby.

Amy Howe: Yeah.

Kate Linebaugh: Rich Strike. How was that for FanDuel?

Amy Howe: That was a good week for consumers.

Kate Linebaugh: Okay.

Amy Howe: No, but those are the stories you love. I mean, that's part of, we always talk about sporting events being these unforgettable moments. But even if you're not an avid horse racing fan, people remember those moments.

Kate Linebaugh: They do. And I watched the Kentucky Derby a lot, and I don't remember most of them, but I remember this year's.

Amy Howe: Yeah, yeah. Exactly.

Kate Linebaugh: All right. Well, Amy, thank you so much for joining us.

Amy Howe: Thank you. Enjoyed talking.

Kate Linebaugh: That's all for today, Tuesday, June 7th. The Journal is a co-production of Gimlet and The Wall Street Journal. Thanks to Katherine Sayre for her help with today's episode. Thanks for listening. See you tomorrow.

Read more here:

FanDuel CEO on Sports Gambling's Big Boom - The Journal. - WSJ Podcasts - The Wall Street Journal

Since New York legalized the sports gambling industry five months ago, residents of the state have made almost $6 trillion in bets, according to the New York State Gaming Commission's latest numbers.

In January, legislation took effect allowing nine authorized bookmakers to begin accepting wagers statewide. Those companies have grossed $425 million since, which has given the state - which taxes the earnings at 51% - an additional $243 million in revenue headed into the new fiscal year.

According to Gov. Kathy Hochul, whose office announced the figures last week in a written release, New York has earned more from the industry in just five months than most states that have in years, quickly cementing its position as a "leader among states in implementing successful gaming policies."

Bloomberg News

Even though the gambling haul far exceeded expectations, practically every dime is destined for "elementary and secondary education and grants for youth sports programming, along with problem gambling prevention, treatment, and recovery services," according to the governor's office.

Recently passed budget legislation dedicates 80% of the proceeds to education aid, to be distributed among the states school districts equally. An additional $6 million will be set aside annually for gambling awareness and treatment efforts.

Legislation put forward by Assemblymember Monica Wallace directs a portion of annual gambling revenue into a grant fund controlled by the Commission for Health and Child Services, aimed at developing fair-access youth sports programs statewide.

The plan guarantees 1% of the first years revenue to the fund, followed by $6 million per year after that. The money will eventually make its way to a network of nonprofits and local organizations whose expertise in youth mentorship and sports training make them ideal on-the-ground program implementers.

While welcome, the gambling revenue is a drop in the states massive budget bucket.

The announcement comes almost two months after Hochul signed off on New York's largest ever budget which included $220 billion in spending.

While monthly reports from the Gaming Commission show gross revenue intake by authorized bookmakers decreasing below initial highs, state officials believe the industry is still likely to rake in hundreds of millions annually. As aid, those proceeds will free up millions of dollars for municipalities as education is often a top cost for local governments.

While gambling proceeds will continue to be off-limits to all but those select initiatives, current legislation can be amended or replaced in the next year's budget negotiations.

View post:

Education to benefit from New York State's new gambling revenue stream - Bond Buyer

YouTube has updated ad requirements for its masthead to allow previously prohibited consumer categories in certain states and countries to run.

Ad bookings for the YouTube masthead,effective today, will be accepted for certain consumer product categories, including sports betting in the United States, only; and alcohol and prescription drugs in the U.S., Canada, and NewZealand.

Changes in regulations for sports betting prompted the change. For example, online sports betting is now legal in more than 20 states, seven of which came online in the past year,according to YouTube.

It became legal in Wyoming, for example, in September 2021, in time for the NFL season. Those who want to place bets could wagers on sports at several online sportsbooks.Sports betting in Connecticut came online in late 2021.

Success for its new per market YouTube masthead format also contributed. The company believes that this decisionbalances the needs of advertisers and consumers.

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Categories such as election and political ads and gambling, for the exception of sports betting, remain restricted from themasthead. YouTube announced the changes Friday.

It's not clear if advertisers in those categories have already booked time in the masthead.

Other ad formats on YouTube or Google Searchwill not see the same change.

YouTube informed advertisers in 2020 the company would discontinue full-day masthead reservations and replace them with more targeted, market-based options. Thisoption, cost-per-thousand (CPM), made mastheads more accessible to a range of advertisers. It also provided more options for their ad campaigns.

YouTube will update its ad requirements toallow assets related to some previously prohibited consumer product categories, as long as they comply with the related Google advertising policy.

Read more:

YouTube To Loosen Masthead Ad Restrictions For Alcohol, Rx Drugs, Gambling 06/13/2022 - MediaPost Communications

In April, United States-based retirement plan provider Fidelity Investments moved to allow 401(k) retirement savings account holders to invest directly in Bitcoin (BTC), the flagship cryptocurrency, making crypto a potential part of ones savings for the future.

A 401(k) is a retirement savings plan offered by many U.S. employers that give the saver tax advantages and allow for several different investment options. Fidelitys move will make it easier for Bitcoin to be among those options.

In a typical 401(k) plan, employees agree to have a percentage of each paycheck paid directly into an investment account created for the plan, while employers often match part or all of the employees contributions.

Fidelity is the largest retirement plan provider in the United States, and its BTC rollout will make the cryptocurrency available to more than 40 million employees assuming their employers decide to offer it. Investors who take advantage of the initiative could effectively become tax-advantaged long-term BTC hodlers removing coins from circulation every month.

The companys plan limits BTC allocations to a maximum of 20% and allows companies to make the threshold even lower. Offering cryptocurrency options for 401(k)s isnt new, however. In June 2021, another retirement plan provider, ForUsAll, partnered with Coinbase to offer BTC exposure to its account holders.

ForUsAll even recently filed a lawsuit against the Department of Labor and Secretary of Labor Marty Walsh in the United States District Court for the District of Columbia, seeking the withdrawal of a compliance assistance release.

The release states that the departments Employee Benefits Security Administration will conduct an investigative program aimed at 401(k) plans that include cryptocurrency. Speaking to Cointelegraph at the time, ForUsAll CEO Jeff Schulte said the government was trying to restrict the type of investments Americans can choose to make because theyve decided today that they dont like a certain asset class.

Questions of government overreach aside, its also important to consider whether including crypto assets in a retirement plan is a good idea. The Bitcoin network has been around for over a decade and has outperformed every other asset class so far, but as any analyst will say, past performance does not guarantee future results.

Considering that Bitcoin and crypto assets in general are recent financial experiments only a little over a decade old, some investors may find digital currencies too risky. Cryptocurrencies can be highly volatile, and their value has been known to plunge by up to 80% during bear markets something that could prove disastrous ahead of someones retirement.

While employees arent forced to withdraw from their 401(k) plans when they retire, the point of the money being there is to provide them comfort during their sunset years. Waiting for the market to recover or simply accepting such significant losses could be devastating.

Recent:Is education the key to curbing the rise of scammy, high APY projects?

Chris Kline, co-founder and chief operating officer of Bitcoin IRA a cryptocurrency-focused individual retirement account provider told Cointelegraph that there is a growing conversation around the adoption of digital assets and their growing use case.

Kline pointed to Senator Tommy Tuberville from Alabama, who recently unveiled a bill, the Financial Freedom Act, that seeks to allow Americans to add cryptocurrency to their 401(k) retirement savings plans.

According to Kline, part of the retirement crisis we have in this country [the U.S.] is due to a lack of participation in 401(k)s. He added that such moves could be a way to get newer generations engaged through their employer-sponsored plans and help Americans retire while testifying to the resilience and relevancy of crypto assets. Kline added:

Cryptocurrencies could have the same disruptive impact on money that the internet had on communications or that email had on post offices, Kline stated.

Speaking to Cointelegraph, Scott Melker, a cryptocurrency influencer and the host of the Wolf Of All Streets Podcast, noted that every investor should have at least minimal exposure to Bitcoin, with Ether (ETH) a second possibility worth considering.

According to Melker, even a small allocation in these assets potentially offers idiosyncratic risk and the opportunity to invest in an asset [that] can go up when everything else is dropping. Melker added that crypto markets crashing ahead of retirement might not be the biggest concern, saying:

Melker added that investors should be allowed to invest in any asset they prefer for their retirement, concluding that while self-directed IRAs are popular for this reason, 401(k) holders havent yet had such an option.

Over the past few years, more and more people have come to consider cryptocurrencies an investable asset class, with demand clearly present for retirement savings. In a survey conducted by Investopedia, one in four millennial respondents reported that they are already using crypto to help fund their retirement goals.

Employers, however, still have their doubts. The Plan Sponsor Council of America recently surveyed its members, which are employers sponsoring qualified savings plans, and asked whether they are considering adding crypto to their investment options. Only 1.6% responded affirmatively.

Speaking to Cointelegraph, Daniel Strachman, managing partner at A&C Advisors and an independent trustee of the Arca U.S. Treasury Fund, said that cryptocurrencies are nevertheless something that a diversified portfolio should include.

According to Strachman, an individuals level of exposure to crypto assets should depend on several factors, including age, income, other assets and more. To him, its all about investor education, as there needs to be significant information, content and educational programs available to investors, regardless of the size of their assets.

Cameron Collins, an investment analyst at Viridi Funds a company offering crypto and clean energy investment solutions echoed Strachman. He told Cointelegraph that sound cryptocurrencies like Bitcoin are great investments and deserve a place in 401(k) plans.

According to Collins, memecoins and scam tokens with no fundamental value do not deserve a place in these types of investments, and policymakers along with investors and plan administrators should be made aware of this important caveat.

Cryptocurrencies, he said, offer extreme upside potential but lack investor protection, which can be a significant drawback. The upside potential may, however, be all an investor needs.

Having more options to invest across different assets, including cryptocurrencies, may give a prudent manager more opportunity to optimize that long-term rate of return, according to Thomas Perfumo, head of business operations and strategy at crypto exchange Kraken.

Speaking to Cointelegraph, Perfumo noted that retirement is often associated with low risk, but This heuristic misses the market, as $1 compounding over 30 years at an 8% rate will grow to surpass $10, while that same $1 compound over 30 years at a 6% rate grows to $5.74.

According to Perfumo, optimizing that rate of return over the long run is how an individual builds wealth, overcomes the burden of inflation and ultimately accrues enough to retire comfortably.

Perfumo added, Risk tolerance evolves over a persons lifetime. Someone closer to retirement, who may already have a significant amount of savings, will likely have a lower allocation to risk-on investments like cryptocurrency.

He added that conversely, individuals at the start of their careers have more capacity to take on risk and will likely allocate more of their capital towards risk-on assets.

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The potential downsides to adding crypto to retirement investment plans, Perfumo said, involve fiduciaries failing to act in their clients best interests by rushing into a risky product or misallocating their clients capital relative to their risk profiles.

On the other hand, someone who wishes to manage a self-directed retirement portfolio should have all available options at their disposal, so long as they are informed of the risks.

Adding cryptocurrencies to 401(k) plans means adding tax-efficient investment opportunities for investors looking to hold onto their assets for an extended period of time. As with any other financial decision, the choice should be adapted to investors risk profiles and should only be made after thorough research and help from advisers if necessary.

Cryptocurrency investments do not match everyones risk profile, nor should they. They are voluntary, but they may be highly beneficial to investors who thoroughly understand the risks involved.

Continued here:

Crypto 401(k): Sound financial planning or gambling with the future? - Cointelegraph