While Draft Kings, Fan Duel and various and sundry
government types sort out where – or if – fantasy sports are legal, another
gambling idea has been hatched in Nevada. Essentially, the law permits
Nevada-based entities to create mutual funds, recruit investors from anywhere,
and place legal wagers in Nevada. The idea is to increase the betting “handle,”
currently about $3.9 billion a year.
Obviously,
this opens possibilities. From Robert Horne, writing in the Las Vegas Business Press: “One scenario
envisions something like a mutual fund that specializes in tracking a specific
team or sport. Another scenario envisions a massive expansion of handicapping
services that could transition from selling advice to placing bets for
investors.”
Imagine
that a fund specialized in the Dallas Cowboys, perhaps betting on or against
them, depending on fund manager’s opinion. Or maybe a fund based on a betting
angle, like wagering against NFL teams traveling three time zones. According to
the people behind the idea, the Securities and Exchange Commission has declared
it has no jurisdiction.
Interestingly,
the Nevada Gaming Control Board also wanted no part of this, because it didn’t
want to deal with the gambling pool operators. Vetting the “mutual funds” will
be the responsibility of sports book operators. CG Technology, which operates
books for several casinos and pushed the bill through the Legislature, is
leading the way. Other books seem wary. Individuals
considering investing must make their own decisions about transaction fees and
transparency. (“Insider trading” possibilities boggle the mind.)
The
whole idea may get no traction. But consider: If some politicians and the New
York state attorney general get their way and outlaw fantasy sports, this idea
is lurking. And the busybodies won’t be able to do a damn thing about it.
No comments:
Post a Comment