Are bailouts liability? Or are they opportunity? I for one would put up 50% of my balance with a monster rollover and no withdrawels for 90 days if a solid book stepped forward. Myself, I am a net loser in sports for many years. If I am atypical of the average sports bettor, a bailout helps both the sportsbook as well as give the average joe like myself faith in this industry and a fighting chance.
I really have no idea how much a sportsbook makes off every $100 wagered, if they are charging 8% juice, after expenses, I would have to hazard a guess 3-4%. If a book offered a bailout now, assuming everyone took the offer, they would receive $750, 000 in cash reserves coming into a slow part of the season. What book wouldn't want that?
Assuming a 25x rollover, 4% roi for every dollar wagered and 750, 000 in cash and 1.5m in liability in a bailout, theoretically a sportsbook would receive $56, 250, 000 in action before a withdrawel is made. What sportsbook wouldn't want that? If i was a sportsbook, can I make money off 56m extra in action? I better hope so. If we assume a 4% roi on every dollar, guess what? The sportsbook makes 2.25m, enough to cover the 1.5m in liability and ensure 750k in profit.
Then we take the other benefits that come from a bailout. Any bailout will take a book that is lingering below the radar into the stratosphere. We have seen what a forum like SBR can do to generate and create business for a book. If I was a book, my imagination would just be going rampant on taking me from nowhere to getting an extra 56m in business plus all the extra publicity and customers I would get by bailing out BI.
Cons, I have kept abreast of the threads in here and it sounds from reading posts from people in the know, there must be legal implications as well from helping out US facing book. However, if you are already an existing book facing the US, I am sure they already have a handle on it and its just a cost of doing business.