Traditional investors may scoff at the idea of sports betting as an investment. After all, there are seemingly too many variables that can affect the outcome of a match or event, which makes it, at least on the surface, a risky investment. But clients of sportsbooks and casinos are generally categorised into two groups – gamblers and professionals. For pro bettors, gambling is a means to an income and is seen as an investment. But is sports betting really a good investment? And what are some of the figures behind such investments? Let’s take a look now.
The fundamentals of investing in sports betting mirror any other type of investment.Â
While there are so many sports, events, and outcomes that you can gamble on, the fundamentals of achieving profit from investing in this niche are the same as they are with any other form of investment. You need to begin with a pool of capital and place it on various stakes and outcomes to make a profit. While the risks associated with investing in sports betting are undoubtedly high, the potential gains can be remarkable compared to more traditional forms of investing.
Investing in sports betting can yield incredible profits.Â
According to NuWire Investor, investing in sports betting with the correct strategy can be incredibly lucrative. They suggest that rather than targeting 10-12% returns per year as many investors do, sports betting professionals can reasonably hope to make somewhere between 100-200% per month. This is an incredible return on your initial investment. In addition, the same article suggests that if you’re able to identify odds that a bookmaker has mistakenly overestimated, your monthly profit could be anywhere between 200-300%.
What ROI can you really expect from sports betting as an investment?Â
While there’s little doubting the potential profits that sports betting can yield, is it realistic to expect to see earnings of up to 200% per month? That isn’t very likely, to say the least. In reality, sports bettors have to settle for a much lower return on their investment [ROI], particularly when starting out. This professional gambling site indicates that professional sports bettors tend to maintain a long-term winning percentage between 53 and 55%. While this can still help you turn a tidy profit, you need to be prepared to lose almost the same number of bets that you win.
How much do you need to start investing in sports betting?Â
While many investment portfolios have a minimum capital requirement to begin with, this isn’t the case with developing a professional sports betting portfolio. You can sign up for many online betting sites with as little as US$10 in your account, which makes it incredibly easy to get started. That being said, to be able to turn a decent profit, you will need to have a sizeable pool of capital to get you started. Consider setting aside at least US$500 to start investing in sports betting and monitor the growth of your portfolio over time.
What about investing in betting companies?Â
As well as sports betting itself, there’s great scope to make a tidy profit by investing in sports betting companies themselves. For growth in the UK, US and even Irish markets, an investment in the stock of Flutter Entertainment and DraftKings are likely to help you build your portfolio. Both companies are responsible for some of the biggest and most popular online platforms and sportsbooks, and their stock is only likely to rise in the near future as technology advances and their customer base increases. In particular, in the US, more and more states are legalising online gambling, which is creating additional income-generating opportunities for betting companies. So if you’re keen to try your luck at investing in sports betting, it makes sense to couple your pro betting portfolio with a range of stock options.
Final thoughts.Â
Although it’s not the most traditional investment strategy, investing in sports betting can potentially yield a high profit if it’s done right. But just like any other investment, you need to be prepared for your capital to reduce as well as increase. And with the many variables at play within sports betting, it is widely considered a high-risk investment and should be carried out with the utmost research and planning. But providing you develop a coherent strategy and have a decent capital pool, to begin with, you can expect a reasonable return on your investment in a short space of time.
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