Can Sports Betting Become an Alternative Investment Market?

With all the turmoil in the economy and the real estate market, will investors keep their cash on the sidelines or look for alternative markets. Most stocks are tied into the economic news with no parameters and direction. It is becoming more difficult for even savvy investors to time the bottom. They have to become much more selective LSM99.

The Sports Betting market has been around a long time with some controversy in the earlier years. However, there is a vibrant market in today’s highly competitive sports arena. The regulated Nevada Sports Books have the monopoly on legalized Sports Betting. Can the amateur recreational bettors make money at these books — sometimes, but not in the long run.

The professionals know how to look for the edge and only need to hit a minimum of 55% to make a modest return on investment. Making a 15% to 25% return for the year is very possible. The good ones are few but the results are quick and opportunities exist everyday when bad betting lines are found and exploited. The so called experts set the betting lines as to how they perceive the betting public will react. They ideally want even betting on both sides. Their number does come close about 65% of the time. Their recent Superbowl line was not even close and they had the wrong team – Indy Colts – with too many points. This happens a lot in all sports. They do provide a good service but their stats and computer models can only go so far. Investments in this area have a limited scale and cannot handle the millions or billions that pour into those other markets. But investors with up to one million can see a very nice return with the right professional.

The biggest competitor to these legalized Sports Books has been the internet. The reputable online Sports Books were growing very fast until the Port Security Bill was passed with the Illegal Internet Gambling Act attached. One had nothing to do with the other. It was a disaster for many publicly traded gaming companies overseas and the US betting public. Hopefully, it will be repealed and the regulated online gambling bill sponsored by Barney Frank will pass some day — but don`t hold your breath!

The betting investment options on the internet – if it becomes legal – are numerous and sophisticated. The newest formats are the betting exchanges and spread betting in the UK – where internet gambling is legal but that does not help US bettors. These new betting formats have many angles to invest in and do provide an edge if you know what to look for.

When the regulatory cloud over this industry is removed, then you will see investment vehicles similar to the hedge funds and derivatives that are available in the other investment markets. The tax revenues alone could be in the millions if this market becomes regulated and legal. For now, it seems Nevada still has a lock on this market. MEET YOU IN LAS VEGAS!

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