How to make the gambling industry legit
there is no difference between speculating in the financial market and making sports wagers. In both cases, you're making an guess at some semi-random interval.
The only difference between the two is that in financial speculating, you're buying/selling risks from counter parties, and there is a legit need for buying/selling risk to people with money.
Now if you create a legit reason for buying/selling risks for a sports organization, then it might become a legit operation.
How to do this? Here is my idea. Let's say Yankees needs to make to the play offs or they're gonna lose about 50 million in revenue. So it is a legit need that they need to hedge the risk of "not making the playoff". they could package it as a futures contract and trade it at futures exchanges. Now other MLB teams can buy/sell these type of contract as well.
Once there is enough liquidity, you can start making derivative contracts based on these season contracts. Derivative could start off with 1st/2nd half season totals. once these contracts gets enough liquidity, go can go down from there. Eventually you'll have derivative contracts for a single game.
I think this is a pretty smart idea if the leagues allow franchises to hedge their risk.
Think about it. The NBA can hedge their risk in case the cavs got beaten by the spurs in the playoff.
The only difference between the two is that in financial speculating, you're buying/selling risks from counter parties, and there is a legit need for buying/selling risk to people with money.
Now if you create a legit reason for buying/selling risks for a sports organization, then it might become a legit operation.
How to do this? Here is my idea. Let's say Yankees needs to make to the play offs or they're gonna lose about 50 million in revenue. So it is a legit need that they need to hedge the risk of "not making the playoff". they could package it as a futures contract and trade it at futures exchanges. Now other MLB teams can buy/sell these type of contract as well.
Once there is enough liquidity, you can start making derivative contracts based on these season contracts. Derivative could start off with 1st/2nd half season totals. once these contracts gets enough liquidity, go can go down from there. Eventually you'll have derivative contracts for a single game.
I think this is a pretty smart idea if the leagues allow franchises to hedge their risk.
Think about it. The NBA can hedge their risk in case the cavs got beaten by the spurs in the playoff.
