Amidst all the turmoil in the economy and real estate market, will investors keep their money aside or look for alternative markets. Most stocks are tied to economic news without standards and trend. Timing rock bottom is becoming increasingly difficult even for savvy investors. They have to become more selective.
The sports betting market has been around for a long time with some controversies over the years. Nevertheless, there is a vibrant market in today's highly competitive sports sector. Regulated 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 find the edge and they only need to reach a minimum of 55% to get a modest return on investment. It is very possible to get returns of 15% to 25% in a year. The good ones are few but the results are quick and there are opportunities every day when bad betting lines are caught and taken advantage of. So-called experts set betting lines based on how they perceive the reaction of the betting audience. They ideally want to bet on both sides. Their number is around 65%. The previous 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 provide good service, but their statistics and computer models can go much further. The scope of investment in this sector is limited and it cannot handle the millions or billions that are coming into those other markets. But 1M investors can see very good returns with the right professional.
The biggest competitor to these legal sportsbooks has been the Internet. Reputable sportsbooks were growing so rapidly that the Port Security Act was passed along with the Illegal Online Gambling Act. One has nothing to do with the other. It was a disaster for many publicly traded gaming companies abroad and the United States for the betting public. Hopefully it will be repealed and the Barney Frank sponsored online gambling legislation will be passed one day – but don't hold your breath!
Investment options on the Internet – if they become legal – are numerous and growing. The latest formats are betting exchanges and spread betting in the UK – where online gambling is legal but this does not help punters in the US. There are many angles to invest in these new betting formats and there are benefits to be gained 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 in other investment markets. If this market becomes regulated and legal the tax revenue alone could run into millions. For now, it appears that Nevada is locked in on this market. See you in Las Vegas!
