Entrepreneurs thrive off calculated risk, emerging markets, and opportunity. The world of sports betting offers a perfect blend of each for those willing to invest their money and do a little homework. Let’s take a look at some of the advantages sports betting provides over traditional forms of investments and other financial markets.
Investing in sports is just like Wall Street. There is a misconception out there that sports betting is about playing against casinos or bookmakers with a built-in advantage. Not true. Bettors are playing against other bettors based on numbers set by odds makers. Where the money and market go from there is unpredictable and highly volatile. Nearly $400 billion are bet on sports annually, so there is a lot of room for error and potential revenue gain. Bookmakers only take a small percentage with each bet (the juice)—usually 10 percent. Think of it as a stock broker fee.
Sports betting is much like day trading, but with some unique advantages. For one, your capital has increased fluidity, which enables you to see a return on your investment in a matter of hours. You aren’t waiting—sometimes years—for a fixed investment to show return. Daily sports betting allow a greater volume of investment with a smaller bankroll, which potentially offers greater rewards in a shorter time span.
As hinted above, the market is also inefficient. Many casual gamblers just don’t have the expertise or know how to turn a profit long-term, nor do they wager a bet expecting to win every time. Think of group of guys coming together for bachelor party in Vegas tossing money on a game or two with their choices based on a whim or “gut feeling.” Their research is most likely scant, and they have probably limited their bankroll based on how much they can lose before even taking the trip. Famed businessman Mark Cuban asked this poignant question about the average sports bettors in a 2004 blog post praising the market’s profit potential: “How efficient can a market be when the majority of investors expect to lose money?” For many, sports betting is entertainment, passion-based, and riddled with miscalculations. A savvy investor with the right tools can take advantage.
Also, don’t be fooled into thinking somehow the sports betting market is fixed or that it disrupts the integrity of the game. Hogwash. There are far more scandals, book cooking, and insider trading going on in traditional stock markets. Sports are much more public and transparent. Statistics are readily available by the leagues themselves, injuries are reported, and you can watch most of the product on television or the internet to draw your own conclusions of performance and value. There are no silly number write offs, expense options, inventory write-downs or resales often covering up bad numbers found in some publicly traded companies. What you see is what you get in sports betting, and access to vital information much easier.
Investing, no matter what the avenue, is essentially gambling. Sports betting offers a viable opportunity for better outcomes and more rewards if done right. There are a host of reputable online sports books out there to get started with clear-cut rules and regulations—the majority operating under government oversight. Check out sportsbookreview.com, the top appraisal and rating site in the industry, for recommendations.