This past week, Nevada Governor Brian Sandoval legalized investments made into sports betting. This new legislation means that anyone living in the 46 states that ban sports betting can finally have access to the Nevada sportsbooks. In other words, to legally bet on sports games, people no longer have to enter a licensed sports book in Nevada.
How Investments Into Sports Betting Works
The new bill that passed allows investment groups and businesses to pool money into funds that are managed by sports handicappers. These handicappers make bets legally in Nevada. The funds operate as a business entity in which the fund manager distributes all the money that is collected to wager on several major sporting events. In laymen’s terms, investors can now put their money into funds that then are invested in the betting capabilities of some of the best handicappers in Las Vegas. Those who operate the business entity have to give sensitive information to the sportsbooks such as taxpayer identification and social security numbers. The new bill mandates that business entities that control the funds must register with the Nevada Secretary of State so that a Nevada bank can maintain an account.
What This Means For Nevada
The new bill has the potential to put billions of dollars in Nevada’s coiffeurs when previously this money was being put into illegal sportsbook operations out of the state. On top of this, it has the potential to bring substantial hedge fund money to Nevada. The new law also states that sportsbooks in Nevada can branch out to the world. This means that you may be able to enter into an Oklahoma branch office and put a bet on a football game that’s officially placed by a Nevada handicapper. However, this requires much local cooperation.
Some Sports Books May Refuse
Nevada sports books have the right to refuse service to a hedge fund, and they may have reason to do so, as professional investments are going to be quite substantial, and extensive research will go into the placed bets. On the other hand, the average person who walks into a sportsbook off the street has a higher chance of losing and thus making the sportsbook money.
The First Hedge Fund To Place a Bet
The first hedge fund to place a bet on a sports game is the Centaur Galileo fund based in London. The managing director of Centaur Group, Tony Woodhams, stated that they place bets on things that everyone else only casually discusses, which gives them the upper hand in markets. It only makes sense then that they would be interested in wagering on sports games. However, Galileo is not an average sports bettor, as they require at least 100,000 Euros to enter a bet. They claim to have a genius number-crunching system that will make them a huge profit through sports betting. Their plan is to make money from the point spreads and odds that are impacted by amateur bets.
Advocate of the New Law
Mark Cuban, who is a highly known entrepreneur and the owner of the Dallas Mavericks, has long thought the ability to invest in sports betting is a good idea. He has stated that as long as funds find a data-driven model and stick to it, they’ll be able to turn a decent profit. He has even claimed that investing in stocks is riskier than investing into a sports game.
New Jersey Hoping To Jump on Board
New Jersey is hoping to be able to jump on board the sports investment train. However, to do so they must legalize gambling. They are currently awaiting a Circuit Court of Appeals ruling based on their case being made against U.S. sports leagues. If New Jersey wins the case, sports betting will officially be legal in the state of New Jersey, which would provide a second state that Nevada sports books can operate in.