The average investor probably shouldn’t turn to sports betting to make a profit, but educated bettors are making money during the recession
With stock markets plummeting and cryptocurrency collapsing, some investors are scrambling to find alternatives.
Could sports betting offer a reprieve?
Veteran sports bettor Bill Krackomberger says he’s enjoyed reliable profits for more than two decades – profits that more people can now try to pocket with increased access to legalized online sports betting across the country. .
“I had eight straight months to make money until February. It’s hard to believe,” Krackomberger said.
Even when he endures crises, like all investors, Krackomberger’s pain didn’t last long thanks to his diligent methods.
“I haven’t had a losing year or quarter since 1998,” he said.
“It’s All Game”
- Financial markets continue to fall and the United States is officially in a bear market.
- Cryptocurrencies, which are not underwritten by governments and only exist online, are also collapsing.
- The combination of these downturns and rising inflation has people considering other investments.
The Dow Jones Industrial Average plunged from a record high of 36,799 in January to below 30,000 in June, while the S&P 500’s fall of more than 20% from its high marks it as a bear market. NASDAQ and bonds are also crashing.
The collapse of crypto, meanwhile, is even more striking. The most popular token, Bitcoin, has suffered a 70% drop in value this year. Some crypto credit companies, including Celsius Network, have suspended customer withdrawals due to extreme market conditions.
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The losses are compounded by rising interest rates and inflation, which undermine consumer confidence.
Some choose to put their money in low-interest savings accounts and CDs. Others are considering liquidating their assets.
“Clients are grappling with growing concern that a recession is looming in 2023,” said Cris Moran, senior portfolio manager at EP Wealth Advisors Inc. in Southern California. “They feel the pain of inflation. We have some who are scared and want to liquidate everything they have with us, so we will have to dissuade them. The long-term financial plan does not always follow a straight line.
Moran said he’s never seen a liquidation work long-term. He also reminds his clients that the stock market is in a “discount mechanism,” offering prices that can be bargains down the road.
Buddy Friedman, a sports betting pioneer in Palm Desert, Calif., who designed a telephone subscription football odds service in the 1980s, said these financial investments are not much different from sports betting.
“That’s the whole game,” Friedman said. “In fact, depending on your stockbroker, you might end up paying more than the 10% you pay in juice on a bet.”
And no matter where you invest your money, knowledge is key.
Is sport the best bet?
- It depends who you ask.
- Experienced and educated sports bettors can outperform stock markets, especially in 2022.
- Inexperienced bettors can suffer massive losses.
“Are you kidding me?” Krackomberger said when asked if sports betting, stocks or crypto are the shrewdest method of financial investment today.
His latest windfall came two weeks ago with the NBA Draft. Krackomberger, who lives in Las Vegas, made four trips to Arizona to bet on the Orlando Magic taking Duke forward Paolo Banchero with the No. 1 pick. A report from ESPN said the Magic would take Jabari Smith Jr. from Auburn instead. Krackobmberger trusted his research and instincts, traveled to capitalize on Banchero’s falling odds to 12/1, and that night tallied $160,000 in total winnings.
“Look, my parents went to their graves worrying about me betting, saying, ‘Be careful, Billy,'” he said. “But compared to the stock market and crypto now, let’s be honest…I’ve lost money in the stock market for the past 18 months.”
Krackomberger is not alone.
But the risk of uneducated sports betting can also lead to significant financial loss, and non-sports fans should not take their money from the stock exchange and put it into an online bookmaker.
“The stock market has clear parallels to sports betting with one major difference – you’re not on the inside on Wall Street. You’re on the outside,” Krackomberger said. “You have to be inside, like me.
“You have to know the things that I know, something that drives me to the Arizona border to make a bet at 12/1, when a day earlier it was 2/1. “
There are cases of novice bettors winning large sums of money.
Amid this wave of online sportsbooks looking to grow their customer base, most are offering introductory free bets, like the $500 three-team bet offer extended by BetMGM earlier this year.
A Colorado bettor used it to bet on the Los Angeles Rams, Golden State Warriors and Colorado Avalanche winning the Super Bowl, NBA title and Stanley Cup respectively. When the Avalanche scored the hat trick on June 26, the bettor was awarded $269,000.
BetMGM racing and sports director Lamarr Mitchell said it was the biggest score in the book to date on a free bet.
But this is not the norm.
“I’m not saying there aren’t any winners,” Friedman said. “But for the last 45 years I’ve been on the other side of the fence (taking bets), for every 15 to 20 people who lose, there’s two people who win.”
And despite all his advice to help aspiring bettors profit from their sports interests, Krackomberger said “most people don’t have the temper for that.”
“Even the sharpest guys can’t handle the emotional swings of losing bankroll,” he said. “Ultimately, after the stock market stabilizes at 25,000, investing in the fundamental companies that built our country is the way to go.”
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The savviest bettors are patient
So, knowing the risks and rewards — like any good investor — if you decide to put your money into sports betting, how do you win?
Even the most ardent fanatics who watch ESPN and read sports pages can’t digest the information needed to reap consistent profits, according to Krackomberger, a Bronx native who was educated in betting by his “old Italian uncles.” “.
He is what the industry considers a savvy bettor. As well as his three assistants. And their betting preparation is intense. To improve your chances, he said, do these things:
1. Duties. Read everything.
“You have to be long-term and have a proven method of knowing your picks are winning picks, and that requires deeper insight into things – the players, the injuries, the weather, the referees,” he said. he declares. “I have a guy who reads everything. All the stories, all the Twitter posts, the emotional things that happen, the little nuggets of hurt. So many little things.
“Most people don’t have the patience or the skills to watch this. They just want the winner. But I have the guys and I have a 30 year old playbook.
2. Research the market.
Look for the most favorable spreads and point totals, the best moneyline odds and the highest betting limits
“My business, for me, is that I just make 3% to 5% a year, going 6-4 every 10 games,” he said. “If I do this in my lifetime, I’m a multi-multi-millionaire.”
3. Detach your fandom from your financial management.
“Money management is everything,” he said. “You can’t bring all of your $1,000 to the day. If you have $1,000, your big bet should be $20 to $25 max. Because you can’t outrun fluctuations. I can lose 10 games in a row. If you do this with $75 games, you have effectively lost your bankroll. But if that happens with $20 bets, you’ve only lost a fifth of your bankroll. That’s the difference.
Without that sober consideration, Krackomberger said to keep your money somewhere else.
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