Now let¡¯s grapple with the cold, hard reality of trying to turn a profit. Assume a $1 bill represents each vertical ¡ª one for sports wagering, one for casino gaming. The industry standard hold for online sports wagering is 7%, which means our company will gain one nickel and two pennies for every dollar wagered on a sporting event on our site.
The process is easy and app-driven. Gaming companies provide constant offers of ¡°risk-free¡± bets, which allow customers to bet up to a certain amount; if they lose, the money is returned to them as a credit (not cash) that they can use to bet later. They don¡¯t need ¡°a guy¡± or an offshore account. They open an app from a myriad of gaming companies (13 are active in Pennsylvania and 20 in New Jersey) and bet on just about anything you can imagine, including darts, snooker, Australian rules football and handball, before and during games. It¡¯s reminiscent of the January 2021 technology-fueled stock-market run of GameStop, which was promoted on social media and joined online by scads of profit-seeking young investors. And the chance to play parlays, place prop bets (will James Harden make more than 2.5 three-pointers against the Heat?), and wager during games is extremely attractive to people 21 to 30 years old.
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