With all the turmoil in the economy and real estate market, will investors keep their money on the sidelines or look for alternative markets. Most stocks are associated with economic news without standards and trend. It’s getting tougher even for savvy investors to timing rock bottom. They have to become more selective.
The sports betting market has been around for a long time with some controversy in the previous years. Nevertheless, there is a vibrant market in today’s highly competitive sports arena. Controlled Nevada sportsbooks have a monopoly on legal sports betting. Can amateur leisure bettors make money on these books – sometimes, but not in the long run.
Professionals know how to look for the edge and only need to hit a minimum of 55% to make a modest return on investment. It is very possible to make a return of 15% to 25% for the year. The good ones are few but the results are quick and the opportunities are there every day when bad betting lines are caught and exploited. The so-called experts laid the betting lines regarding how they perceive the reaction of the betting audience. They ideally want to bet on both sides. Their number is close to 65% of the time. The last Superbowl streak wasn’t even close and they had the wrong team – the Indy Colts – with too many points. This happens a lot in all sports. They do a good service, but their stats and computer models can go a long way. Investments in this area are limited in scope and cannot handle the millions or billions that are pouring into those other markets. But 1M investors can see a very good return with the right professional.
The biggest competitor for these legal sportsbooks has been the Internet. Reputable sportsbooks were growing so fast that the Port Security Act was passed with the illegal online gambling act attached. One has nothing to do with the other. It was a disaster for many publicly traded game companies overseas and the United States betting on the public. Hopefully it will be repealed and the Barney Frank sponsored online gambling law will pass one day – but don’t hold your breath!
Investment options on the Internet – if they become legal – are numerous and evolving. The newest formats are betting exchanges and spread betting in the UK – where online gambling is legal but that doesn’t help bettors in the US. These new betting formats have many angles to invest in and offer an advantage if you know what to look for.
When you remove the regulatory cloud of this industry, you will see investment vehicles similar to hedge funds and derivatives available in other investment markets. Tax revenues alone could be in the millions if this market becomes regulated and legal. For now, it appears that Nevada remains locked in to this market. Meet you in Las Vegas!