Determining the Value of the Sports Betting Market


According to and the National Gambling Impact Study Commission (NGISC), Nevada's legal sports wagering represents less than 1 percent of all sports betting nationwide. Take a moment or two to let that figure sink in.


The current value of the Nevada sports betting market is quite easy to determine. It's current value in dollars is $3.9 billion (actual figures are below). Keep that number in mind as well.


Historically, sports betting has been used as a way for casinos to attract traffic to their properties. The hope has been that consumers will also open their wallets to the other casino games while waiting and watching the games.


That was a great strategy until the introduction of mobile applications where you could electronically wager on sports (while in Nevada) through your own account. Add in other outside influencing factors such as managing a fantasy football team, daily fantasy sports, etc and one can see that a person's electronic device of choice is truly a one stop shop on NFL Sundays.


Sports betting has been growing every year in Nevada for more than five years (figures below).

While it's difficult (if not impossible) to put an actual dollar figure on the U.S. sports betting market, we can safely assume it's growing significantly as well. How? The next time you watch any of the major sports networks during football season, take notice of the "spread" being displayed on the screen. The analysts also reference Vegas quite often.


Allowing sports betting investment funds to form and legally wager on sporting events is Nevada's push to begin to capture a large piece of that "99 percent" potential that it is currently missing.


Below are Nevada's annual gross sports wagers:


CY 2010: $2.80 billion*

CY 2011: $2.90 billion*

CY 2012: $3.45 billion*

CY 2013: $3.65 billion*

CY 2014: $3.90 billion*


If Nevada truly has only 1% of the current U.S. sports betting market which is continuing to grow, the potential upside is significant. That's also without considering the global sports betting market, which we'll cover in a future article.


What do you think? What is the future of sports betting in the U.S?






6S Alternatives LLC



*Source: Nevada state gaming control board's revenue report.

The Curious Case of the 2015 Texas Rangers


It's Baseball's All Star Break and a perfect time to take a look at what's been occurring on the diamond and in the sports books!


(Team records are in parentheses)


It's easy to see from a win-loss perspective that the St. Louis Cardinals (56-33) and the Philadelphia Phillies (29-62) have the best and worst records in baseball respectively.


From a betting standpoint, you would be correct to assume that these two teams are #1 and #30 respectively in regards to profit and loss in terms of money returned from wagers.


Yet the more intriguing story is that of the Texas Rangers (42-46). With only a lackluster .477 win percentage,they're currently tied for 18th best in the majors with the Cleveland Indians (42-46) and Chicago White Sox (41-45).


However, the Rangers are currently 5th in terms of profit made from wagers. Compare that to both the White Sox and Indians, who are each showing an overall net loss and ranked 19th and 28th respectively.


So we have three teams with the exact same win percentage, yet the Rangers are showing an approximate +8% growth (based on 1% risk adjusted model). Whereas the White Sox and Indians are showing approximately -5% and -14% declines respectively.


You are probably wondering how something like this could occur b/c it seems to make zero logical sense? Well who said betting and logic went together?


The key to successfully wagering on baseball is to understand pricing. Pricing (i.e odds), at many times, is far more important than simply taking a team on any given day simply because you "think" they will win.


As you can see with the teams above, the number of "wins and losses" are similar. Yet, the money made or loss is significantly different.



When Six Sigma meets Alternative Investing , a multi-strategy alternative investment opportunity is born..

Investing involves risk. Investors should consider the objectives, risks, and expenses before participating in the High Roller Fund.