OverviewRollbit operates as a gaming and gambling platform featuring three distinct product lines: a casino, a sportsbook, and a futures trading platform.
Rollbit's Casino offers a diverse range of games, each characterised by distinct betting mechanics, risk levels, and potential rewards. Additionally, Rollbit incorporates a fairness verification link beneath every Rollbit original game.
Our analysis of Rollbit's Casino data over the preceding 47 days reveals a daily average revenue of $912,166. When annualised, this figure translates to a yearly revenue total of $333,168,706. Rollbit dedicates 10% of its Casino Revenue to the burning of RLB tokens, resulting in a daily burn of $91,216.6 and an annual sum of $33.29 million.
Rollbit’s sportsbook product allows betting on both traditional sports and esports. Presently, their sportsbook services are facilitated by a third-party provider named Betby. Our examination of Rollbit's sportsbook data during the same 47-day period shows a daily average revenue of $174,812, which equates to an annual revenue total of $63,850,189. Rollbit allocates 20% of its sportsbook revenue to the burning of RLB tokens, leading to a daily burn of $34,962.4 and an annual amount of $12.7 million.
Lastly, Rollbit Futures offers 1000x leverage trading on 13 assets. The futures trading platform, distinct in its absence of a Central Limit Order Book and hosted liquidity, allows traders to deal directly with the site. Asset prices are aggregated from various exchanges, considering factors like liquidity and priority. Rollbit offers transparent formulas for user clarity. Traders can choose to pay fees either only on profitable trades or consistently upon both entry and exit, irrespective of results. Rollbit has on average made $280,720 daily over the past month and a half on through their futures trading product.
On November 10, 2021, the Rollbit team launched the RLB token on Solana with an initial supply of 5 billion RLB tokens. RLB was introduced as a fair launch, fully diluted coin, ensuring there is no overhang from unlocking investors or highly inflationary emissions. It is noteworthy that prior to the launch of the token, the project was officially launched in February 2020, highlighting the team's commitment to ensuring product market fit.
Rollbit has implemented a token burning mechanism since the inception of RLB. The most recent burning approach, surpassing the Rollbit lottery burn, involves a buyback and burn mechanism based on protocol revenues. Consequently, RLB has become one of the most deflationary tokens, with the buyback providing a constant bid for the token.
However, as a result of numerous substantial token burns from both the Rollbit lottery and the new buyback and burn mechanism, the current circulating RLB supply stands at 3,122,154,104 tokens, reflecting approximately 37.55% of the initial supply that has been eliminated since launch.
Rollbit CasinoRollbit Casino is a comprehensive online gambling platform that offers a wide variety of games with various betting mechanics, risk levels, and rewards. Below is a comprehensive list of the various games provided by the casino section within Rollbit:
Games
1. Plinko:Plinko originated on "The Price is Right '' TV show in 1983 and involves participants releasing a puck onto a peg-filled board, observing it ricochet towards a designated prize area at the bottom. Rollbit’s modernised version is a customizable gambling game where players can win up to 10,000 times their bet. The game offers 30 board setups and allows players to adjust risk levels, the number of rows, and the number of balls dropped.
Max Bet: $1,000
RTP (return to player): 96.4%
House Edge: 0.4%
2. X FlipRollbit X Flip is a traditional coin flip betting game with functionality such as auto bet and presets that determine the amount of coins being flipped, maxing out at 10 coins being flipped at a time.
Max Bet: Depends on the amount of coins flipped at once.
Max win can’t exceed $50000
RTP: 99.2%
House Edge: 0.8%
3. Rollbit Bonanza
This is a slot game that lets players choose their odds and volatility. Wins are determined by the number of special Rollbots that appear on its six reels.
Max Bet: $1,500
RTP: 96%
House Edge: 4%
4. X-RoulettePlayers choose multipliers from 1.01 to 1,000,000. The X-Roulette wheel spins each round. If the wheel stops on a number lower than your chosen multiplier, you lose your bet. If it stops on a number equal to or greater than your multiplier, you win your bet multiplied by your chosen multiplier.
Max Bet: $1,000
RTP: 95%
House Edge: 5%
5. X-Crash
Players select the sum they’d like to wager. They have the option to designate an auto-cashout multiplier; their wager will automatically be secured if this level is attained. The Dragon is unpredictable and could crash without warning. Should it crash before the player secures their wager, they will forfeit their initial bet. If they successfully secure their wager before the Dragon's crash, their initial bet gets amplified by the multiplier they opted for at cashout.
Max Bet: $100,000 (Maximum Payout)
RTP: 95%
House Edge: 5%
6. RollerCoasterThis game is unique to Rollbit and simulates highly volatile trading where players bet on whether a generated price will go up or down. Each round lasts 24 hours.
Max Bet: $100,000
RTP: 98.5%
House Edge: 2.5%
7. SidebetsAllows users to place additional wagers on the outcome of slot spins. Bet sizes may have restrictions.
Max Bet: Varies
RTP: 98%
House Edge: 2%
8. NFT Lootboxes
Players win NFTs, cash prizes, or $RLB tokens, with each prize having a pre-set win probability.
Max Bet: N/A
RTP: 98%
House Edge: 2%
9. NFT Jackpot
Players can bet NFTs or cash against others for a shot at winning the entire prize pool. New rounds start every 50 Ethereum blocks, and their odds of winning increase with the value of their bet. If they win, they get their initial bet back plus any additional winnings. Based on the amount they win, Rollbit may charge a commission of as much as 5%. However, this fee won't affect the initial amount thy wagered if they win
Max Bet: Unlimited
RTP: 99.8%
House Edge: 0.2%
10. NFT Market PlaceAllows users to buy, sell, and stake NFTs, avoiding Ethereum gas fees. Users can stake Rollbots to earn a share of marketplace profits.
Max Bet: N/A
RTP: 99%
House Edge: 1%
Bonus Battles
Rollbit has introduced a new PvP game mode called Bonus Battles. Participants must buy a Bonus within 1 minute and 30 seconds of the game starting. The player with the biggest win at the end takes everyone else's balance. In case of a tie, a random winner is chosen. Misconduct can lead to penalties including forfeiture of balance.
Slots
Rollbit offers over 1000 slot games made by various game providers.
Max Bet: Varies by game
RTP: Varies by game
House Edge: Varies by game
Game ShowsRollbit hosts 33 live game shows, ranging from classics like Mega Wheel and Monopoly to modern games such as penalty series and old west.
Max Bet: Varies by game
Median RTP: 98.51%
Median House Edge: 1.51%
Live CasinoRollbit offers 31 live casino games including blackjack, baccarat, minesweeper, three-card poker and more.
Max Bet: Varies by game
Median RTP: 99.47%
Median House Edge: 0.53%
RouletteRollbit offers 22 variations of Roulette
Max Bet: Varies by game
Median RTP: 98.92%
Median House Edge: 1.08%
Rollbit Sidebets
Rollbit's Sidebets feature allows users to place additional wagers on slot spins, predicting whether the spin will pay above or below specific multipliers. To win, the spin result must either be lower or higher than the multiplier you chose, depending on your bet. For instance, if you place a Sidebet for 'Above 10x,' you'll only win if the outcome exceeds 10x. There are 30 games within this category.
Max Bet: Bet sizes for Sidebets may be limited or restricted depending on the game or the size of the main bet.
RTP: Varies by game
Challenges
Rollbit's Challenges offer prize opportunities in specific or all games. To win, meet the given criteria based on your real bets and outcomes. Multiple bets in X-Roulette count as one, and only concluded bonus rounds qualify. Some games like Rollercoaster are excluded. No fees are involved.
Max Bet: Varies per game
Clans
Rollbit incorporates a Clans feature, where players can pool their funds for collective betting in casino games. A clan owner or designated admin controls which game is played and the bets made. Members can withdraw their share of the balance at any time, although pending rounds may temporarily affect balance accuracy. Standard rewards and referral programs apply based on individual stakes. House games and Challenges are currently not compatible with the Clans feature. Multiple clans can be created by a single player only if they link a Rollbot.
Casino Revenues
Before delving into the specifics regarding Rollbit’s revenue, it’s important to understand the concept of Law of Large Numbers, house edge and return to player (RTP).
Law Of Large Numbers
According to the law of large numbers, a player's losses will gradually converge to the house edge over an extended period of play. Consider a fair coin with a 50% chance of landing heads and a 50% chance of landing tails. The expected value of flipping the coin once is 0.5 heads + 0.5 tails. If you flip the coin only a few times you may get outcomes that deviate significantly from the expected 50-50 split. However, if you flip the coin 1000 times, the ratio of heads to tails is likely to be much closer to 50-50. This is the Law of Large Numbers in action: the average result converges to the expected value as the number of trials increases.
The Law of Large Numbers is crucial for both the casino and the players. For the casino, it guarantees that they will make a profit in the long run due to the house edge. For the players, understanding this law can help them make more informed choices and set realistic expectations when gambling.
House Edge & RTP
The house edge is the casino’s built-in mathematical advantage over players and can be calculated with the following formula: House Edge = 100% - RTP.
RTP is the percentage of the total money staked that gets returned to players in the long run.
It’s important to note that different games come with varying house edges and RTPs, offering players the opportunity to strategically select where to place their bets. As part of this report we will discuss a simulated game of Plinko, playing 200,000 games to look into the high variability nature of casino games and to verify the provable fairness of the game and the accuracy of purported RTP.
Provably Fair Case Study
Under every Rollbit original game, there is a link to which users can verify the fairness of the game. For the purposes of this report, we took a closer look at Plinko.
The credibility of each Plinko game is maintained by a randomly-generated "secret seed," along with an optional seed from the player. Displaying the hash of the secret seed prior to taking bets verifies that it's set in stone. Incorporating a player’s seed negates the chance of manipulative practices by Rollbit.
Algorithm:
In each Plinko game, an unused 32-byte seed is picked. Its hash, computed using the BLAKE2b method, is made public before any bets are taken. The ball’s course as it navigates through rows is decided by a complex hash. This hash is based on the secret and user seeds, as well as the number assigned to both the ball and the row. A number >0.5 dictates that the ball will move right whilst the inverse means it will drop left.
After revealing the secret seed, the game's results are open for scrutiny by anyone. We can derive key metrics such as the hash of that round, anticipated RTP, the fate of individual balls, and the cumulative winnings. The course of each ball is symbolised by a string where "+" denotes a rightward move and "-" indicates a leftward move.
We can simulate 200,000 games being played in an attempt to verify that the displayed RTP was accurate:
Through our analysis of 200,000 games, we can verify the games' fairness. The high variance inherent to gambling games is evident in the discrepancy between the mode and mean RTP. We are also able to verify that the displayed RTP on the game is accurate.
Casino Revenue
We analysed the prior 47 days of Rollbit’s Casino and found that their daily average revenue is $912,166. If we annualise this figure we get a yearly revenue total of $333,168,706.
Rollbit commits 10% of the Casino Revenue to buyback RLB. Using the prior daily average figure this equates to $91,216.6 bought per day and $33.3m per year.
Sports Betting
Rollbit provides a plethora of events that users can bet on, ranging from traditional sports to esports.At present their sportsbook services are provided by a third party called Betby.
Betby:
Betby is a sportsbook service provider. It offers a broad spectrum of betting options, spanning traditional sports to virtual and esports. The platform manages data for 150,000 live events each month, covering more than 125 different sports and offering more than 3,000 betting markets. As a third party, they handle all the backend operations of the sportsbook.
Future speculation regarding in-house sports book:
By outsourcing such functionalities, Rollbit is reliant on their services remaining online which historically has caused a couple of instances of sportsbook outages in the past. To combat such events from taking place, it has been speculated on and hinted at by team members that Rollbit has intentions to create their own in-house sportsbook. This would reduce counterparty outage risk and improve lines and spread.
Below is a table showing the 51 events that users can bet on:
Rollbit commits 20% of the Sportsbook Revenue to buyback RLB. Using the prior daily average figure this equates to $34,962.4 bought per day and $12.7m per year.
Crypto Futures
Rollbit also offers a futures trading platform, where users can trade 13 assets with up to 1000x leverage. This futures trading platform operates uniquely, devoid of a Central Limit Order Book and hosted liquidity, meaning traders transact directly with the site instead of through a centralised order book. The asset prices, rather than being determined by this platform alone, are aggregated from multiple exchanges, providing a more stable and accurate valuation. This aggregation takes into account factors like liquidity and priority, which might suggest the weightage given to prices from certain exchanges. Rollbit has provided
formulas to further enhance the users understanding of various mechanisms involved in their futures trading platform.
Users can select a cryptocurrency to trade and bet on the price either rising or falling. They can adjust the leverage multiplier up to 1000x. If users keep their bet open for more than 8 hours, they can incur or receive hourly funding payments.
Fees
Rollbit employs two primary fee structures for its cryptocurrency futures trading services:
Percentage of Profit: Rather than charging fees for opening or closing a trade, Rollbit earns revenue by taking a percentage of the trader's profit. This percentage is flexible and depends on several variables such as the size of the trade, its duration, and the leverage used. Rollbit will only take fees on profitable trades in this instance.
Flat Fee Structure: Alternatively, traders can opt for a flat fee upon executing a trade. Under a flat fee model, all earnings are kept by users, but they’re charged an upfront, fixed fee that accounts for their entry, exit, and any slippage, similar to standard exchanges. The flat fee is determined as a percentage of their total position, which is their wager multiplied by the chosen multiplier. This one-time charge encompasses both the opening and closing of the trade as well as any price slippage. In this model, Rollbit's earnings are secured upfront, regardless of how the trade performs.
Funding Fee
Should a user’s bet remain active for over eight hours, they’ll begin incurring funding fees. These fees vary based on the magnitude and orientation of the traders bet. Rollbit provides a ROI calculator that allows users to see their returns based on specific and customised outcomes. Below we will cross compare the Percentage of Profit and Flat Fee structure
Futures Pricing
Rollbit calculates a composite price by indexing several centralised exchanges and their corresponding spot and futures prices on assets in order to formulate a single index price which is then relayed to users and updated every 500 milliseconds.
Rollbit also combines all resting limit orders from each price feed into one composite order book. By taking the weighted average of the marginal mid-prices at each size, Rollbit can then consolidate the data into a marginal price that is representative of the potential price impact of a users’ order through Rollbit’s self-hosted liquidity.
Additionally, the price offered to Rollbit users needs at least 6 valid price feeds in order to be updated. The given “static” price tends to lean closer towards the top-of-book which allows Rollbit users to speculate on short-term price moves for which a bid-offer spread would otherwise be relatively expensive.
Example using 10,000 x 10 Percentage of Profit and using $10,000 X 10 Flat fee, respectively:
Rollbit commits 30% of the Futures revenue to buyback and burn RLB. Using the prior daily average figure this equates to $84,216 bought per day and $30,759,894 per year.
Tokenomics
History
The Rollbit team launched the RLB token on Solana, on the 10th of November 2021. The initial supply was 5 billion RLB tokens. The entire 5 billion RLB tokens was airdropped to Rollbot NFT stakers, Rollbit accounts and via giveaways in the following proportions:
Approximately 3.85 billion tokens (77.14% of the initial supply) was distributed to Rollbot NFT stakers depending on the rarity of their Rollbot’s eye trait.
This airdrop was distributed in the following quantities to Rollbots, with rarer traits getting more RLB per Rollbot NFT: